Here's what RBI did, as reported in Economic Times:
The Reserve Bank of India has thrown a lifeline at banks which could help lenders report lesser bad loans. It has scrapped the condition that a loan could be treated as standard loan if it is restructured only once. The regulator has allowed banks to restructure loans many times within the stipulated period of commissioning of projects
Impact: Most of the Banks especially PSU Bank stocks were up sharply today..
The problem is real and serious. As per some estimates, about 40% of total infrastructure loans are likely to be restructured by March 2015 as against 20% in March 2013. Now, considering this - I guess RBI had no choice other than allowing banks more time to put house in order.
The Big Beneficairy seems to be IDFC. Here's the IDFC Chart -
IDFC stock did not participate in the rally at all. But it seems that may change now with RBI now backing the problem and institutional buying may pick up in the stock. The stock now has a well defined support of 125.
The Blogpost is purely for educational purpose. Please do not treat the article as investment/trading recommendation.