PSU stocks crash today: PFC, REC, IREDA, PNB, others decline up to 13%. Here's why

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.

PSU stocks crash today: The stock market index on a display screen at the Bombay Stock Exchange (BSE) building in Mumbai.(PTI)

Read more: Warren Buffett thinks AI is a nuclear weapons ‘genie’ that can’t go back in bottle: ‘Makes me nervous’

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.

Unlock exclusive access to the latest news on India's general elections, only on the HT App. Download Now! Download Now!

Read more: Rekha Jhunjhunwala loses 800 crore today: What happened in the stock market

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%.

Read more: Ola's Bhavish Aggarwal on gender pronouns: 'Illness’, hope it doesn't reach India

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.

Read more: Tata Tech share price plunge 5% on muted Q4 results: Details

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.

Discover the pivotal moments that shaped India's electoral journey on the Eras section of our exclusive Elections product. Access all content absolutely free on the HT App. Download now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs

• ABOUT THE AUTHOR

  

  Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.