Why India's banking stocks are on a decline?
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In the wake of the Reserve Bank of India's (RBI) proposed changes to project financing regulations, major banking stocks including HDFC Bank, ICICI Bank, State Bank of India (SBI), and Punjab National Bank have experienced a decrease of up to 9% over the past three days. The proposed regulations include standard asset provisioning of up to 5% on loans. According to analysts at Macquarie, these changes are viewed as 'onerous' by those managing project finance.