 "Power, PSU bank stocks trade weak as Allahabad HC refuses interim relief")
Shares of power and power finance companies were trading lower by up to 2% in an otherwise strong market after the Allahabad High Court refuses interim relief to power firms from Reserve Bank of India (RBI) directions.
Rural Electrification Corporation (REC), Power Finance Corporation (PFC), Adani Power, Tata Power and GMR Infrastructure were trading lower in the range of 1% to 4% on the BSE. On comparison, the S&P BSE Sensex hit a new high of 38,920 in early morning trade, was up 0.31% at 38,813 at 09:34 am. These stocks had rallied up to 7% on Monday, ahead of High Court decision.
Union Bank of India, Bank of India, Canara Bank, Punjab National Bank (PNB) and Bank of Baroda, too, were trading lower by 1% each on the BSE.
The Allahabad High Court (HC) refused on Monday to provide relief for privately-owned stressed power projects from the RBI’s February 12 order.
The RBI circular directed lenders to undertake insolvency resolution of defaulting companies within a strict timeline. The central bank had ordered banks to identify stress even when repayments were overdue by only a day. Resolution proceedings must be completed in 180 days, a deadline that ended on Monday.
The court has, however, allowed the affected companies to try the legal route for individual grievances, the Business Standard reported. CLICK HERE TO READ FULL REPORT
Rural Electrification Corporation (REC), Power Finance Corporation (PFC), Adani Power, Tata Power and GMR Infrastructure were trading lower in the range of 1% to 4% on the BSE. On comparison, the S&P BSE Sensex hit a new high of 38,920 in early morning trade, was up 0.31% at 38,813 at 09:34 am. These stocks had rallied up to 7% on Monday, ahead of High Court decision.
Union Bank of India, Bank of India, Canara Bank, Punjab National Bank (PNB) and Bank of Baroda, too, were trading lower by 1% each on the BSE.
The Allahabad High Court (HC) refused on Monday to provide relief for privately-owned stressed power projects from the RBI’s February 12 order.
The RBI circular directed lenders to undertake insolvency resolution of defaulting companies within a strict timeline. The central bank had ordered banks to identify stress even when repayments were overdue by only a day. Resolution proceedings must be completed in 180 days, a deadline that ended on Monday.
The court has, however, allowed the affected companies to try the legal route for individual grievances, the Business Standard reported. CLICK HERE TO READ FULL REPORT
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%