RBI Eases Infrastructure Financing Norms; Sensex and Nifty Close Higher
The RBI has relaxed financing rules for infrastructure projects, boosting market sentiment. Sensex rose over 141 points and Nifty ended above 23,500. Here's how the markets and sectors responded
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The Reserve Bank of India (RBI) has announced a significant relaxation in financing norms for infrastructure projects, allowing lenders greater flexibility in extending credit for long-gestation projects. The move aims to ease financial stress on large-scale developments and provide a fresh impetus to the economy.
The central bank stated that lenders can now take into account the extended construction and gestation periods of infrastructure ventures when calculating loan tenures. This change is expected to enhance the viability of such projects by enabling longer repayment timelines, aligning more closely with the actual cash flows of infrastructure assets.
Market participants welcomed the announcement, with banking and infrastructure-related stocks witnessing strong buying interest.
As a result, the Sensex rose by 141.34 points, closing at 77,478.93, while the Nifty50 ended 51 points higher at 23,567. Intra-day, the Nifty had hit a new record of 23,579.05.
Analysts noted that easing in project finance regulations comes at a crucial time when India is focusing heavily on expanding its infrastructure landscape through public and private sector collaboration. The revised framework will allow banks to restructure loans to infrastructure firms with more flexibility, possibly reducing non-performing assets (NPAs) in the sector.
On the sectoral front, the Bank Nifty rose by 0.5%, with major private lenders like ICICI Bank and HDFC Bank showing modest gains. Infrastructure and capital goods indices also registered positive movement.
This development follows recent reforms targeting capital markets and project clearances, reflecting the government and RBI’s coordinated push toward robust infrastructure-led growth.
