PFC, REC shares rally 4% as RBI eases provisioning norms for project financiers

Shares of PFC and REC surged up to 4.5% after the RBI released final project finance guidelines, easing provisioning norms compared to the stricter May 2024 draft. Analysts called the move a relief for project financiers, with minimal impact on profitability or balance sheets. The relaxed norms support continued lending while aligning regulations across banks, NBFCs, and co-operative banks.