Finance Stocks Today: PFC, HUDCO, IREDA & IRFC Shares Surge After RBI’s New Project Finance Guidelines

Shares of several public sector project financing companies saw notable gains in early trade on Friday, June 20, 2025, following the Reserve Bank of India's (RBI) announcement of the finalised project financing guidelines. The move was welcomed by investors as it introduces greater clarity, reduced provisioning in later phases of projects, and a structured framework for managing financial stress.

Finance Stocks Today: PFC, HUDCO, IREDA AND IRFC Share Price Today

Among the biggest movers were Power Finance Corporation Ltd. (PFC), whose shares surged up to 4%, reflecting strong investor sentiment. REC Ltd. followed closely with a 2.6% gain, while HUDCO saw its shares climb nearly 2%. IREDA posted a 1.5% increase. Shares of Indian Railway Finance Corporation (IRFC) also traded higher.

PFC Share Price Today

As of 2:34 PM on June 20, 2025, shares of Power Finance Corporation Ltd (PFC) were trading at Rs 408.45 on the National Stock Exchange (NSE), marking a significant gain of Rs 18.10 or 4.64% for the day.

HUDCO Share Price Today

As of 2:37 PM on June 20, 2025, shares of Housing and Urban Development Corporation Ltd (HUDCO) were trading at Rs 224.40 on the NSE. The stock recorded a gain of Rs 6.74 or 3.10% in intraday trade.

IREDA Share Price Today

As of 2:45 PM on June 20, 2025, shares of Indian Renewable Energy Development Agency Ltd (IREDA) were trading at Rs 164.40 on the NSE. The stock saw an intraday gain of Rs 5.65 or 3.56% on Monday.

IRFC Share Price Today

As of 2:55 PM on June 20, 2025, Indian Railway Finance Corporation Ltd (IRFC) was trading at Rs 134.06 on the NSE, reflecting a gain of Rs 1.71 or 1.29% in intraday trade today.

Key Highlights of RBI's Final Project Finance Guidelines

The newly finalised guidelines set clear norms for how much provision financing institutions need to set aside when funding infrastructure and other major projects. Here are the main provisions:

During Construction Phase:

• The Provision Coverage Ratio (PCR) for general project finance will be 1% of the total project cost.
• For Commercial Real Estate (CRE) projects under construction, this rises slightly to 1.25%.

During Operational Phase (once the project is complete and functional):

• Standard provisions are reduced to 1% for operational CRE exposures
• 0.75% for projects involving a mix of CRE and residential housing
• 0.4% for all other operational projects, which significantly lowers the capital burden on financing companies.

In addition to setting the provisioning norms, the RBI has also introduced a principle-based resolution framework. This approach will help lenders better manage and resolve financial stress in project loans by assessing risks more dynamically rather than following a one-size-fits-all model. This framework encourages early identification of stress and timely corrective action, which is especially important in the long-gestation infrastructure sector.

These revised project finance norms will officially come into effect from October 1, 2025. Market experts believe this lead time will allow financial institutions to align their practices and reassess provisioning for existing and upcoming projects.