Power Finance Corporation, REC merger hits roadblock

As per the RBI's norms, debt exposure of an NBFC in a project cannot exceed 25 per cent. The exposure of Power Finance Corporation (PFC) and REC as a merged entity would exceed the limit of 25 per cent in any existing project as the two firms have been financing power sector projects. After the merger, the new entity will be required to reduce its exposure.

from Banking/Finance-Industry-Economic Times https://ift.tt/2OaIn0o