Bajaj Finance shares fall most in four months, down 6%; here's why

Shares of Bajaj Finance slipped nearly 6% in early deals today after The Reserve Bank of India (RBI) on Thursday proposed to prohibit non-banking finance companies (NBFCs) from offering revolving credit facilities, allowing them to extend only term loans under a draft amendment to its Credit Facilities.

A revolving credit facility is a flexible loan arrangement with a bank. It allows one to borrow money up to a fixed limit, pay it back, and borrow it again whenever you need.

Bajaj Finance stock slipped 5.55% to Rs 1086 against the previous close of Rs 1149.90. Market cap of the firm slipped to Rs 6.85 lakh crore. Today's plunge was the biggest fall during intra day trading for the stock in four months.

According to the draft norms, the NBFCs can only offer term loan products under draft norms. The RBI has also defined term loans and revolving credit in the draft amendment.

Shares of Bajaj Finance on August 3 hit a record high on the back of June quarter earnings.

In Q1, the firm reported a 27% rise in net profit to Rs 5,985.75 crore from the Rs 4,699 crore profit reported in the corresponding period of the previous financial year. Net interest income rose 23% year-on-year to Rs 12,571 crore against Rs 10,228 crore in the year ago period.

Assets under management (AUM) grew by 24% to Rs 546,944 crore as of 30 June 2026 from Rs 441.450 crore as of 30 June 2025. AUM grew by Rs 36,969 crore in Q1 FY27. Net interest income rose 23% in Q1FY27 to Rs 12,571 crore from Rs 10.228 crore in Q1 FY26. Net total income rose 22% in Q1FY27 to Rs 15,224 crore from Rs 12,460 crore in Q1 FY26.