Budget 2026: FM Sitharaman Announces Restructuring of PFC, REC; Shares Soar

• Finance Minister Nirmala Sitharaman proposed restructuring state-owned NBFCs PFC and REC in Budget 2026 for scale and efficiency.
• The restructuring aims to align these public sector NBFCs with the vision for Viksit Bharat, focusing on credit disbursement and technology adoption.
• Following the announcement, shares of Power Finance Corporation (PFC) jumped 4.1% to Rs 394.20, and REC shares rallied 4.33% to Rs 379.90.
• PFC is a leading NBFC under the Ministry of Power, while REC finances the entire Power-Infrastructure sector and has diversified into Non-Power Infrastructure.
• A high-level committee on banking for Viksit Bharat was also proposed to review the banking sector for India's next growth phase.

Why It Matters: FM Sitharaman announced the restructuring of PFC and REC in Budget 2026, leading to a surge in their share prices.