Why did banking stocks like ICICI Bank, SBI and HDFC Bank correct so sharply on 04 May 2020? Is the market bounce over?

Actually, on 04 May banking stocks across the board gave up gains. This comes on the back of very smart gains by banking index of nearly 27% in the month of April 2020. ON 04 May, most bank stocks including SBI, ICICI Bank, IndusInd Bank and HDFC Bank fell by over 10% as sentiment remained risk-off after RBI’s decision to close CKP Cooperative Bank. In fact, the Nifty Bank index fell by 8.5% intra-day on the NSE. The correction in private banks was sharper as the extended lockdown would mean that retail and consumer loan stress could rise further and that was not good news for the retail lending private banks. This retail lending concerns also put NBFCs under pressure. But the real sentiment dampener was a Reuters report saying that bad debts of Indian banks could double due to the Coronavirus pandemic. According to the Reuters report, bank NPAs could double to 18-20% of the loan books, something that would neutralize all the efforts of the last 3 years.