PSU stocks experienced a significant decline today due to stricter regulations proposed by the Reserve Bank of India (RBI) on projects under implementation. The RBI’s guidelines mandate a 5% general provision for all existing and new project loans in the construction phase, with provisions gradually decreasing to 1% under certain conditions when projects enter the operational phase. This news led to a sell-off in PSU stocks, with companies such as Power Finance Corporation (PFC), Rural Electrification Corporation (REC), and Indian Renewable Energy Development Agency Limited (IREDA) witnessing declines of up to 13.6%. PSU banks like Canara Bank, Punjab National Bank, Bank of Baroda, and Bank of India also witnessed sharp falls of over 5%. The Nifty PSU index fell 4.3% to 7,202 points, and the BSE PSU index dropped 3.4% to 19,760 points, with 54 constituents trading in the red.