Bajaj Finance, RBL Bank fall as RBI grants only 1 more year to co-branded credit cards

RBI has not yet allowed NBFCs to launch credit cards so most NBFCs have opted for the co-branded route. Bajaj Finance has credit card partnerships with RBL Bank and DBS Bank. While DBS Bank partnership is one-year old, the one with RBL Bank is a long standing one that started in FY18.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Observing "serious deficiencies" in Bajaj Finance's adherence to the guidelines, the Reserve Bank has granted only one year of extension for the NBFC's co-branded credit card partnership with RBL Bank, sources told CNBC-TV18.

The RBI has granted an extension until December 21, 2024, while Bajaj Finance had sought a longer extension for its credit card ties with RBL Bank, CNBC-TV18 reported, citing sources.

At 1:15pm, Bajaj Finance was quoting at Rs 7,169.95 on the NSE, down 1.72 percent, while RBL Bank was down 3.3 percent at Rs 263.45.

Follow our live blog for all the market action

The RBI has not yet allowed NBFCs to launch credit cards, so most of the non-bank financiers have opted for the co-branded route. Bajaj Finance has credit card partnerships with RBL Bank and DBS Bank. While the DBS Bank partnership is one year old, the one with RBL Bank is a long-standing one that started in FY18.

As per RBL Bank's FY23 annual report, it is among the largest credit card issuers in India with over 5 percent market share in cards in force (CIF). Analysts at Motilal Oswal estimate that co-branded cards with Bajaj Finance account for 60-65 percent of RBL Bank's total credit card issuances.

Bajaj Finance has been facing the heat from the RBI of late. The central bank had on November 15 asked it to stop sanction and disbursal of loans under its two lending products - eCOM and Insta EMI Card - with immediate effect over non-issuance of key fact statements to the borrowers under these two lending products.

Also read: RBI risk weight norms on consumer loans could impact NBFCs

The RBI has also been wary of the rise of unsecured consumer loans in the system. It recently increased the risk weight on such loans, which also includes bank lending to NBFCs. As a result, NBFCs like Bajaj Finance will see an impact on the lending as well as borrowing side.

The company reported a consolidated net profit of Rs 3,551 crore for the July-September quarter of this year, up 28 percent from year, while analysts had predicted a 30 percent on-year increase in net profit.