The ANZ was punished by investors when it resumed trading after a halt to announce a $3 billion raising to meet stricter capital requirements.
The bank fell by as much as 8% in early trade, the steepest fall since 2008.
The ANZ dragged the other big banks, and the market in general, lower in the process. A short time ago, the ANZ was trading down 6.29% to $30.53.
The Commonwealth Bank had lost 2.14% to $82.74, the NAB 1.19% to $33.19 and Westpac 1.56% to $32.92.
The overall market was down as much as 2% at one stage.
A short time ago, the S&P ASX 200 was at 5,526.00, down 84.10 points or 1.50%. All ten sectors were in the red, led by financial stocks which were weaker by more than 2%.