Mumbai: The shares of public sector Banks and Non-Banking Financial Corporations (NBFCs) are facing major turbulence in the early trading session of the Monday as the government in its newly presented budget 2026-27 has proposed to set up a high-level committee on Banking for Viksit Bharat which would comprehensively review the financial sector, aligning with the country’s financial phase of growth and would safeguard the financial stability inclusion and consumer awareness. The banking sectors and other lending organizations are strongly characterized by the balance sheets, loan portfolios, asset quality and provision coverage ratios.
The government has announced the planning to restructured the public sector NBFCs like REC Ltd, Power Finance Corporation in order to achieve scale and improved efficiency ratios with the vision for the developed India, outlining the core structure of Public NBFCs with strategic and clear targets for credit disbursements and technology adoption. The Finance Minister on the second hand has also proposed a comprehensive review of the Foreign Exchange Management (non-debt instruments) rules in the Union Budget to create a more complimentary and user-friendly framework for foreign investments equivocal to economic priorities. The government on high investment vision has also proposes an incentive of Rs 100 crore for a single bond issuance of more than Rs 1000 crore. Further it has also been recognized that a market framework with suitable access to funds and derivatives on corporate bond indices could be formed along with a proposal for total return swaps on corporate bonds. Currently, the AMRUT scheme provides incentives up to Rs 200 crore, will now also be continue to support smaller and medium towns.
Furthermore. To facilitate the ease of doing business, Individual Persons Resident Outside India (PROI) will also be permitted to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme. The proposed budget has also mentioned to rise the investment limit for an individual PROI under this scheme from 5% to 10% with the overall investment limit for all individual PROIs to 24% from 10%.