Shares of Indian Renewable Energy Development Agency Ltd (IREDA) surged 2.78% to ₹174.77 on Tuesday, gaining ₹4.73 from the previous close of ₹170.04, as the Reserve Bank of India (RBI) unveiled revised guidelines under Priority Sector Lending (PSL), enhancing loan classification for the renewable energy sector.
As per the updated norms, bank loans up to ₹35 crore extended to borrowers for renewable energy-based power projects and utilities will now qualify for PSL. Additionally, loans up to ₹10 lakh per borrower for individual households will also be eligible under the renewable energy segment.
The market reacted positively to this policy shift, which is expected to support the sector’s financing ecosystem. IREDA has already been at the forefront of renewable energy financing. In Q3 FY25, the state-run company’s loan book surpassed ₹69,000 crore, marking a 36% YoY growth. Loan sanctions more than doubled during the same period.
On Monday, IREDA witnessed over 7.3 crore shares changing hands—equal to the combined volume of the last five sessions—though only 13% were marked for delivery.
The company also announced that its board of directors will meet today, March 25, to review its borrowing plan for FY26, further strengthening investor sentiment.
