RBI's project financing norms will have negligible impact on banks, NBFCs: Report

The relaxation in project financing norms by the Reserve Bank of India (RBI) to banks and NBFCs will have a negligible impact on their profitability and balance sheet, according to a report by Motilal Oswal.

- TDG NETWORK

"We believe the impact of the revised norms on bank/NBFC profitability will be negligible, as the existing book remains unaffected," the report added.

However, the report added, "For new project loans, any incremental provisioning cost is likely to be passed on to borrowers, especially in a declining rate environment, through yield adjustments."