REC Limited share price climbed up by 3% in afternoon trading on Friday, after the Reserve Bank of India (RBI) announced that it will relax rules for infrastructure lending. The central bank reclassified loans for infrastructure and housing development projects as low risk, staring October 2025. The decision boosts access to lending, making it easy for the government-owned energy infrastructure developer to access funding.
Assessing the Impact of RBI Decision
With the RBI decision, infrastructure loans in India will now require lower capital provisioning in the books of lending institutions, enabling them to free up more money that could benefit the likes of REC Limited (BSE: RECLTD). In addition, relaxation of the rules results in lower perceived credit risks, which could ease access to the broader debt market.
The lower barrier could also give REC and other public infrastructure developers like Power Finance Corporation (PFC) advantage over peers outside that market. That will likely be in the form of improved net interest margin (NIM) due to a lower cost of borrowing. Meanwhile, REC share price upside is supported by healthy fundamentals.
The government-owned corporation has seen its loan book continue to grow significantly, with its margins on the upside trajectory. Alongside this, its cost management strategies including subsidiary consolidation and strategic bond issuance have helped lower headwinds to its medium and long-term growth.
REC Share Price Prediction
The momentum on REC share price calls for further upside above ₹392. With the buyers in control, the action will likely head up and encounter the first resistance at ₹402. An extended upside momentum will break above that level and potentially test ₹412.
On the other hand, action below ₹392 will invite the sellers to take control. That will likely see the first support established at ₹381. Breaking below that level will invalidate the upside narrative. In addition, a stronger downward momentum could test ₹372.
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