PSU bank stocks tank as RBI proposes tighter project finance rules
The central bank's draft rules include a classification of the projects as per their phase and higher provisioning of up to 5 per cent during the construction phase, even if the asset is standard. In the last credit cycle, project loans were seen to have led to a build-up of stress on bank books. The standard asset provisioning otherwise stands at 0.40 per cent.
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The stock of State Bank of India dropped 2.86 per cent and Bank of India dipped 2.57 per cent. Image: Pixabay | Representational