Monday, August 11 | The Draft That Shook India's NBFC Sector | Bajaj Finance (BAJFINANCE)

$BAJAJFINSV This weekend, one regulatory document is being read very carefully by every NBFC analyst, promoter and investor in India. On Thursday, RBI proposed that NBFCs shall offer only credit products that are in the nature of term loans and shall not offer any revolving credit products — with the exception of only two NBFCs in India that are authorised to issue credit cards: SBI Card and BoB Cards. Under the draft, once a loan is disbursed, the sanctioned limit cannot be restored or replenished upon repayment of either the whole or part of the principal. Feedback on the proposed norms can be submitted until August 28, 2026. For Bajaj Finance, the implications are direct. Analysts estimate that flexi loans could account for nearly 25 per cent of its AUM. If the draft guidelines are implemented in their current form, the company may witness slower loan growth, lower fee income, and changes to its product strategy. But there are meaningful reasons not to panic yet. If implemented consistently as an industry-wide measure maintaining a level playing field, this is less likely to cause disproportionate loss of business or economics at an individual NBFC. More importantly, the effect could be mitigated substantially if the proposed norms apply only to fresh loans while existing revolving credit facilities are grandfathered. NBFCs are likely to make representations to the central bank, arguing that revolving credit products provide significant flexibility to borrowers while helping minimise overall interest costs. Bajaj Finance touched a 52-week high of Rs 1,177.60 just four days before Friday's crash to Rs 1,086. The 52-week low stands at Rs 788.40, hit on March 23, 2026. Monday's open will be the first test of whether the weekend brought any regulatory signals that soften the draft's impact — or whether the selling resumes.