Latest news with #NiftyPSUBank
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Business Standard
12 hours ago
- Business
- Business Standard
PSU Bank index jumps 2% as RBI eases norms for new project finance loans
PSU Bank stocks: The public sector bank stocks were rallying on Friday after the Reserve Bank of India (RBI) issued its final guidelines on project finance loans. Snapping a three-day losing streak, the Nifty PSU Bank index surged over 2 per cent to hit an intraday high of 6,899.5 level, compared to the previous day's close of 6,734.3. The index was the lead gainer among the Nifty sectoral indices and outperformed the benchmark Nifty50 index which was slightly up over 1 per cent at day's high. Last checked, the Nifty PSU Bank index was trading at 6,832.75 levels, up 1.46 per cent. Among the index constituents, Punjab National Bank was the top gainer, up by over 3 per cent, followed by Union Bank of India, Canara Bank, Indian Overseas Bank, Bank of India, Central Bank of India and State Bank of India rising in the range of 1 to 3 per cent. RBI guidelines for project finance loans: The new rules, which will come into effect from October 1, 2025, require a general provision of 1.25 per cent on Commercial Real Estate (CRE), and 1 per cent each on Commercial Real Estate-Residential Housing (CRE-RH) and another portfolio during the construction phase. After commencement of repayment of interest and principal, banks have to maintain 1 per cent general provisions on commercial real estate projects during the operational phase, and 0.75 per cent on residential housing (CRE-RH), while 0.40 per cent on all other projects, the central bank said. The final directions are softer than those in the draft norms released in May 2025. The draft proposal suggested 5 per cent standard assets provisioning for under-construction projects. The final regulations give lenders significant relief. According to new norms, under-construction projects carry a 1 per cent standard asset provisioning, compared with the 5 per cent requirement proposed in the draft norms. The standard provisions shall increase for each quarter of deferment of the date of commencement of commercial operations. The requirements for under-construction CRE exposures will be marginally higher at 1.25 per cent. In addition, the requirement of specific provisions on DCCO (Date of Commencement of Commercial Operations) deferred standard assets is cut to a time-based rate of 0.4-0.6 per cent per quarter from a flat rate of 2.5 per cent. According to RBI guidelines, for accounts which have availed DCCO deferment and are classified as 'standard', lenders shall maintain additional specific provisions of 0.375 per cent for infrastructure project loans and 0.5625 per cent for non-infrastructure project loans. Brokerage views According to analysts at Motilal Oswal, the RBI's final project finance norms come as part of the broader wave of supportive regulatory measures aimed at sustaining momentum in the banking sector. "We believe the impact of the revised norms on bank/NBFC profitability will be negligible, as the existing book remains unaffected. For new project loans, any incremental provisioning cost is likely to be passed on to borrowers, especially in a declining rate environment, through yield adjustments," the brokerage said. The brokerage added that the key positive in the final norms is that they apply only to new and upcoming project loans. Existing exposures will continue to follow the current prudential provisioning framework, ensuring there is no disruption to the back-book. Echoing similar views, analysts at Kotak Institutional Equities expect a lower impact from these guidelines compared to the impact from a draft set of guidelines because the incremental provision requirement has been curtailed. The requirement of standard asset provisions for assets under construction is cut from 5 per cent to 1 per cent. "We see this relaxation as yet another step by the regulator toward systemic easing (after the recent relaxations on liquidity, interest rates, PSL, microfinance risk weight and LCR). The headwinds for loan growth are stemming from quality and cost of deposits (LCR compatible deposits), the trade-off between growth and NIM contraction and weak demand for credit from various segments of the economy," the brokerage said. In its report, the brokerage added that it has not seen a reversal in stance from lenders that had tightened their credit filters in retail in the past two years, while they have turned a bit more cautious today on SMEs looking at global factors.
Business Standard
a day ago
- Business
- Business Standard
Quick Wrap: Nifty PSU Bank Index declines 2.04%
Nifty PSU Bank index ended down 2.04% at 6734.3 today. The index is up 1.00% over last one month. Among the constituents, Central Bank of India shed 3.68%, Bank of India dropped 3.34% and Punjab & Sind Bank slipped 3.29%. The Nifty PSU Bank index is down 10.00% over last one year compared to the 5.43% surge in benchmark Nifty 50 index. In other indices, Nifty Media index is down 1.91% and Nifty Realty index has dropped 1.60% on the day. In broad markets, the Nifty 50 has dropped 0.08% to close at 24793.25 while the SENSEX has dropped 0.10% to close at 81361.87 by Capital Market - Live News
New Indian Express
4 days ago
- Business
- New Indian Express
Sensex slips, Nifty below 24,900 as markets open cautiously
CHENNAI: Indian equity markets opened on a cautious note today, with the Nifty 50 trading below the 24,900 mark and the Sensex declining by over 100 points. The BSE Midcap and Smallcap indices remained largely flat, indicating a mixed sentiment across broader market segments. Nifty 50 opened at 24,925.50, down 21 points or 0.08%, while Sensex opened at 81,715.65, down 80.50 points or 0.10%. Sectoral performance was varied, with the Nifty PSU Bank index gaining 0.10%, while the Nifty Pharma index declined by 0.63%. Stocks that gained in today's opening trade were NTPC (up 0.63% at ₹335.80) Axis Bank, Kotak Mahindra Bank, SBI, and ICICI Bank: Among the major gainers on the Nifty, reflecting positive investor sentiment in the banking sector. While the losers included ONGC (down 1.67% at ₹252.49), Sun Pharma, Tata Motors, Titan Company, Trent, and Bajaj Finance.
New Indian Express
13-06-2025
- Business
- New Indian Express
Iran-Israel conflict stalls market recovery as Sensex, Nifty fall again
India's equity market is facing heightened selling pressure as geopolitical tensions in the Middle East escalated following an Israeli attack on Iranian soil. The strike and its ripple effects, including rising crude oil prices and global market volatility, have stalled the recovery seen in Indian equities since the April 2025 lows. Almost all the Asian and European exchanges closed in the red on Friday while American exchanges opened with sharp cuts. 'Rising tensions in the Middle East after Israel attacked Iran drove investors to safe-haven assets like gold as riskier equities continued to face a battering. This, along with fresh concerns of the US likely to impose unilateral tariffs over the next few weeks and higher valuations of domestic equities, resulted in consolidation of markets,' said Prashanth Tapse, Senior VP (Research), Mehta Equities. After falling 1% each on Thursday, benchmark indices BSE Sensex and NSE Nifty50 fell again on Friday. The Sensex settled 573.38 points or 0.70% lower at 81,118.60, and the Nifty was down 169.60 points or 0.68% at 24,718.60. India VIX spiked over 7%, reflecting heightened volatility and investor anxiety. On the sectoral front, the Nifty PSU Bank index underperformed, shedding 1.18%, followed by losses in the Nifty Metal and Nifty Bank indices, which declined about 1% each. The broader market also remained under pressure, with the Nifty Midcap 100 and Smallcap 100 indices slipping 0.4% and 0.5%, respectively.
New Indian Express
13-06-2025
- Business
- New Indian Express
Equity indices tumble at Friday close amid Middle East tensions, crude price spike
CHENNAI: Indian equity markets ended sharply lower on Friday, mirroring the bearish sentiment across Asian peers, amid rising geopolitical tensions in the Middle East and a significant spike in crude oil prices. Escalating hostilities between Israel and Iran weighed heavily on investor sentiment, triggering broad-based selling across key indices. BSE Sensex dropped 573.60 points or 0.70% to close at 81,118.60, after hitting an intraday low of 80,354.59. While, NSE Nifty50 fell 169.60 points or 0.68%, settling at 24,718.60. The sell-off extended to the broader markets as Nifty Midcap 100 declined 0.24%, and Nifty Smallcap 100 ended 0.43% lower. Sectoral indices witnessed mixed movement, with most ending in the red. The top losers were Nifty PSU Bank (-1.12%) and Nifty FMCG (-1.05%) Other sectors under pressure included Metal, Financial Services, Auto, Energy, Pharma, Consumer Durables, and Oil & Gas
