IREDA shares jump over 2% as RBI issues project finance norms for banks, NBFCs
Shares of Indian Renewable Energy Development Agency (IREDA) gained over 2% on June 20 after the Reserve Bank of India (RBI) released its final project finance guidelines, offering relief to lenders with less stringent provisioning norms compared to the earlier draft.
On June 19, the RBI announced that lenders will be required to maintain a general provision of 1.25% on Commercial Real Estate (CRE) loans and 1% on Commercial Real Estate-Residential Housing (CRE-RH) and other projects during the construction phase. For the operational phase, the provisioning has been set at 1% for CRE, 0.75% for CRE-RH, and 0.40% for other projects.
These norms are significantly softer than the draft proposal issued in May 2024, which had suggested a steep 5% provision for under-construction projects.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
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Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at BusinessUpturn.com
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