RBI has not but allowed NBFCs to launch bank cards so most NBFCs have opted for the co-branded route. Bajaj Finance has bank card partnerships with RBL Financial institution and DBS Financial institution. Whereas DBS Financial institution partnership is one-year outdated, the one with RBL Financial institution is an extended standing one which began in FY18.
Observing “critical deficiencies” in Bajaj Finance’s adherence to the rules, the Reserve Financial institution has granted just one yr of extension for the NBFC’s co-branded bank card partnership with RBL Financial institution, sources informed CNBC-TV18.
The RBI has granted an extension till December 21, 2024, whereas Bajaj Finance had sought an extended extension for its bank card ties with RBL Financial institution, CNBC-TV18 reported, citing sources.
At 1:15pm, Bajaj Finance was quoting at Rs 7,169.95 on the NSE, down 1.72 %, whereas RBL Financial institution was down 3.3 % at Rs 263.45.
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The RBI has not but allowed NBFCs to launch bank cards, so many of the non-bank financiers have opted for the co-branded route. Bajaj Finance has bank card partnerships with RBL Financial institution and DBS Financial institution. Whereas the DBS Financial institution partnership is one yr outdated, the one with RBL Financial institution is a long-standing one which began in FY18.
As per RBL Financial institution’s FY23 annual report, it is among the many largest bank card issuers in India with over 5 % market share in playing cards in power (CIF). Analysts at Motilal Oswal estimate that co-branded playing cards with Bajaj Finance account for 60-65 % of RBL Financial institution’s complete bank card issuances.
Bajaj Finance has been dealing with the warmth from the RBI of late. The central financial institution had on November 15 requested it to cease sanction and disbursal of loans below its two lending merchandise – eCOM and Insta EMI Card – with rapid impact over non-issuance of key reality statements to the debtors below these two lending merchandise.
Additionally learn: RBI danger weight norms on client loans may affect NBFCs
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The RBI has additionally been cautious of the rise of unsecured client loans within the system. It not too long ago elevated the danger weight on such loans, which additionally contains financial institution lending to NBFCs. In consequence, NBFCs like Bajaj Finance will see an affect on the lending in addition to borrowing aspect.
The corporate reported a consolidated internet revenue of Rs 3,551 crore for the July-September quarter of this yr, up 28 % from yr, whereas analysts had predicted a 30 % on-year improve in internet revenue.
