HUDCO, IREDA, PFC, REC stocks jump 3-5% as RBI eases infra financing norms

Shares of non-banking finance companies including HUDCO, IREDA, PFC and REC rose 3-5 percent on Wednesday after the Reserve Bank of India (RBI) announced regulatory changes to ease infrastructure financing. Governor Sanjay Malhotra, while unveiling the October monetary policy, said risk weights on NBFC lending to operational, high-quality infrastructure projects would be reduced, helping lower the cost of financing for the sector.

HUDCO stock was trading at Rs 233 in the late morning session, up 4 percent from the previous close. REC was up 2.5 percent at Rs 382; PFC gained 2.1 percent to Rs 419; and IREDA climbed 3.7 percent to Rs 154. The NSE Bank Nifty index was higher by 0.5 percent, while the Nifty Financial Services index gained 0.6 percent.

The measure was part of a broader package of 22 regulatory steps announced by the RBI aimed at strengthening the resilience and competitiveness of banks and NBFCs, improving the flow of credit, simplifying regulations, and enhancing consumer protection. The proposed reduction in risk weights is expected to cut capital requirements for lenders and thereby bring down borrowing costs for infrastructure projects.

Malhotra said that domestic growth remains resilient, supported by investment activity and government reforms such as GST rationalisation, but acknowledged that global trade uncertainties and tariff-related developments could weigh on external demand. Against this backdrop, the RBI said easing the cost of infrastructure finance through NBFCs is expected to support domestic demand and investment momentum.