In a way multiple factors have been responsible for this sharp fall. Just consider these numbers. Between Jan-20 and March-20, the Nifty Private Bank index lost 38%. What was more surprising was that 30% out of the 38% correction happened in the month of March. What explains this sell-off in private banks? The biggest concern is on the possible economic slowdown even as other factors are also relevant. Coronavirus has created doubts over the global and Indian economic growth story. Already, the IMF has lowered global growth target by 50 basis points and Indian growth even for next year will be around 5% only. In fact, it is now feared that fourth quarter GDP could be below 4%. This is likely to hit output, industrial credit demand and the income levels. All these could seriously hit credit demand, especially from the retail borrowers, where the private banks specialize. Bank credit could really take a hit. That is what private banks are reacting to after consecutive quarters of stupendous performance by most of these names.