On Monday, PSBs and state financial institutions saw their shares drop by as much as 9% due to the Reserve Bank of India's (RBI) proposal for stricter lending regulations. PFC and REC were hit hard, along with PNB, BOB, and SBI. The RBI wants to set a minimum loan exposure for project financing in consortium lending and requires a 5% standard asset during the construction phase. Analysts predict this will mean more money set aside for potential losses and lower profits for lenders, which could slow down growth in infrastructure projects.