- The REC share price is optimistic after the RBI decision allows it to extend the lending capacity without violating the regulatory capital laws.
The REC Limited share price increased by 3 % in the afternoon on Friday, after the Indian Reserve Bank (RBI) announced that it would reduce infrastructure lending rules. The Central Bank has reclassified loans to infrastructure development and housing development projects as low risk, staring at October 2025. The decision promotes access to lending, making it easy for the government -owned energy infrastructure developer to reach financing.
Evaluating the effect of RBI decision
With the RBI decision, infrastructure loans in India will now require less capital in the books of lending institutions, allowing them to free more money that can benefit the likes Limited (BSE: RecLTD). In addition, relaxation in the rules leads to a decrease in perceived credit risk, which may facilitate access to the wider debt market.
The lower barrier can also be given ReC and other general infrastructure developers such as Power Finance Corporation (PFC) on their peers outside this market. This is likely to be in the form of an improved net interest (NIM) due to the low cost of borrowing. Meanwhile, the REC price is supported by health basics.
The government -owned institution witnessed that its loan notebook continues to grow dramatically, with its margins on the path of the upward trend. Besides, cost management strategies including the unification of the sub -and the issuance of strategic bonds have helped reduce the opposite winds for their medium and long -term growth.
ReC price prediction
The momentum calls for the REC price for more bullish direction above $ 392. With the control of buyers, the procedure is likely to go and face the first resistance at $ 402. The bullish momentum will break this level and potentially test $ 412.
On the other hand, the procedure of less than $ 392 will invite the sellers to control. This first supported support at $ 381 will witness. The collapse under this level will nullify the bullish direction. In addition, the declining momentum can test the strongest $ 372.
