Shares of Bajaj Finance decline following concerns over a draft framework from the Reserve Bank of India (RBI) that aims to curb revolving credit extended by non-banking financial companies (NBFCs). According to NDTV, Morgan Stanley notes that products such as flexi loans and overdraft facilities could face disruption under the proposed rules. The report highlights potential implications for Bajaj Finance’s exposure to its MSME lending segment and its consumer credit products. It cites the company’s MSME book size of about $5.4 billion and the scale of its EMI card portfolio, estimated at 97.71 million. The draft measures are described as part of RBI efforts to tighten oversight of credit products that operate on revolving or flexible terms, though the exact operational impact for individual products depends on how the final regulation is shaped. The market reaction reflects investor expectations of changed product economics and potential slowdown in growth or profitability linked to these credit lines.
Bajaj Finance shares fall after RBI draft targets limits on NBFC revolving credit
Shares of Bajaj Finance decline following concerns over a draft framework from the Reserve Bank of India (RBI) that aims to curb revolving credit extended by non-banking financial companies (NBFCs). A...
- Bajaj Finance shares fall after news of an RBI draft regulation affecting NBFC revolving credit.
- Morgan Stanley says flexi and overdraft loan products could be disrupted under the draft framework.
- The reporting highlights Bajaj Finance’s MSME book of about $5.4 billion.
- The reporting also cites Bajaj Finance’s EMI card portfolio at about 97.71 million cards.
- The draft rules are intended to curb or tighten revolving credit for NBFCs.
Morgan Stanley warns flexi and overdraft loans face disruption, putting Bajaj Finance's $5.4 billion MSME book and 97.71 million EMI cards in the spotlight.
3 hours agoMorgan Stanley warns flexi and overdraft loans face disruption, putting Bajaj Finance's $5.4 billion MSME book and 97.71 million EMI cards in the spotlight.
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