“Nifty PSU Bank Index Snaps 3‑Day Losing Streak as RBI Boosts Project Financing”
“PSU bank shares rise after RBI eases provisioning norms for infrastructure lending from October—Nifty PSU Bank index ends 3-day skid, led by Power Finance and REC."
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On June 20, 2025, the Nifty PSU Bank index turned positive, reversing a three-day decline following the Reserve Bank of India’s move to relax provisioning norms for project financing beginning October 2025. The broader Nifty 50 and BSE Sensex each advanced about 0.48%, with PSU banks leading sectoral gains.
The RBI announced reduced provisioning requirements for both under‑construction and operational infrastructure projects, effectively lowering banks’ cost of funding and freeing up capital for lending .
This boost was most pronounced in power finance names—Power Finance and REC jumped roughly 3%—while PSU banks as a whole gained nearly 0.8%.
Citi Research called the move “clearly lender‑friendly,” highlighting its positive impact on profitability.
Despite the market uptick, investors remained cautious due to escalating Middle Eastern conflicts—including Israeli strikes on Iranian nuclear sites—which could trigger broader market volatility.
The RBI’s easing of project financing rules from October is helping PSU banks reset after a recent dip. Though broader markets look positive, geopolitical headwinds continue to remind investors of lingering risks.Nifty PSU Bank index
PSU bank stocks gain
RBI project finance norms
RBI infrastructure lending
RBI provisioning norms 2025
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REC share price today
