Budget 2026: PFC, REC rise up to 6% after FM Sitharaman announces restructuring

Finance Minister Nirmala Sitharaman on Sunday announced plans to restructure state-run nonbank lenders Power Finance Corp. and REC as part of efforts to strengthen public sector financial institutions. The government has also proposed setting up a high-level committee to review the sector and align it with the next phase of growth.

The moves are part of the government’s Viksit Bharat initiative and were announced during the Union Budget 2026 speech.

Shares of Power Finance Corp. rose 6% to a day’s high of 401.45 rupees on the NSE, while REC gained 4.3%.


Bank stocks, however, gave up early gains, with the Nifty Bank slipping 0.22% into negative territory around noon. Eight of its constituents were trading lower.

This is the second time in India’s history that stock markets are open for trading on a Budget Sunday—the previous instance being February 28, 1999, during the Atal Bihari Vajpayee-led government.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)