The banking sector cauterised its losses on Tuesday as major lenders found a bid after the worst sharemarket sell-off since the pandemic took bank stocks to correction territory in just two sessions.

Commonwealth Bank recovered 2.2 per cent to $127.69. On Monday, CBA dropped 5.7 per cent. ANZ Bank fell half a per cent to $27.30; Westpac and National Australia Bank eked out small gains in Tuesday’s trading.