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PSU stocks crash today: PFC, REC, IREDA, PNB, others decline up to 13%. Here's why
PSU stocks crash: Shares of Power Finance Corporation (PFC) and Rural Electrification Corporation experienced declines today.
Shares of PSU stocks crashed today with some of them declining by as much as 13% after the Reserve Bank of India (RBI) proposed stricter regulations on projects under implementation.
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As per the RBI guidelines, 5% general provision must be set aside for all existing and new project loans in the construction phase. Once projects are in the operational phase, these provisions can be reduced to 2.5% of the funding outstanding and further to 1% under certain conditions, RBI said.
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PSU stocks performance today
Shares of power financing companies such as Power Finance Corporation (PFC) and Rural Electrification Corporation experienced declines of 13% and 13.6%, today while the shares of IREDA also saw a significant tumble of nearly 7%.
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PSU banks witnessed sharp declines in today's trade- Canara Bank, Punjab National Bank, Bank of Baroda, and Bank of India fell over 5%. Remaining eight constituents of the index are also trading in negative territory while the Nifty PSU index fell 4.3% to 7,202 points.
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In the BSE PSU index, 54 constituents were trading in the red, resulting in a 3.4% drop in the index to 19,760 points.
