RBIs project financing norms will have negligible impact on banks, NBFCs: Report

A Motilal Oswal report indicates that the RBI's relaxed project financing norms will have a negligible impact on banks' and NBFCs' profitability and balance sheets. The new guidelines, effective October 1st, reduce provisioning requirements to 1% during construction and 0.4% post-DCCO. These final norms are considered positive, striking a balance between enabling project finance flow and maintaining lender stability.