Bajaj Finance fell to a day’s low of Rs 1,085 on the NSE on Friday, a second straight session of losses after RBI’s draft NBFC lending curbs.

The trigger is a draft RBI notification that would stop non-bank lenders from offering revolving credit at all. Under the proposal, NBFCs could only issue term loans, meaning a fixed repayment schedule and a sanctioned limit that doesn’t refill as it’s repaid.

Credit card issuing NBFCs are exempt, and bullet repayment stays allowed. The RBI has also proposed dropping its existing provisions on demand and call loans, and comments on the draft are open until August 28.

Brokerages are framing this as an asset quality story, not a growth one. Bernstein’s view is that pulling back revolving credit could expose borrower stress that’s stayed hidden so far, since flexi-loan products carry higher underwriting and collection risk than plain term loans.

IIFL puts a number on it: around 15% of Bajaj Finance’s consolidated AUM and 20% of its standalone book could be affected.

Fee income tied to these products may also take a hit, though IIFL flagged that prepayment charges could soften that blow. There’s a wrinkle here.

Barely a day before this draft landed, the RBI had named Bajaj Finance to its 2026-27 list of 17 upper layer NBFCs, a category that comes with tighter oversight. Tata Sons, Shriram Finance and Cholamandalam Investment made the same list.

The stock’s total market capitalisation stood at around Rs 6.85 lakh crore as of Thursday’s close, with the stock trading at a price-to-earnings ratio near 34.5, according to NSE data.

That scale is part of why any regulatory tweak to its lending mix moves the broader NBFC pack.

By 10:09 am, the stock was at Rs 1,100.30 on the NSE, down 3.89% from Thursday’s Rs 1,144.80 close. It’s still up 13.10% for the year, and it was sitting at a 52-week high of Rs 1,176.40 just four sessions ago, on August 3.

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