Bajaj Finance shares plunge as RBI proposes limits on revolving credit

On August 7, Bajaj Finance Ltd's shares fell about 5.5% on the BSE, dropping to roughly ₹1,086. The sharp decline erased around ₹33,500 crore of market capitalisation, taking the company's total value from about ₹7.15 lakh crore to ₹6.82 lakh crore in a single session. The sell‑off spread to the broader financial‑services index, which slipped nearly 1%, and other NBFC stocks such as Bajaj Finserv, Tata Capital and Poonawalla Fincorp also slipped 2‑3%.

The market reaction is tied to a draft proposal from the Reserve Bank of India that would restrict non‑bank financial companies (NBFCs) to offering only term‑loan products and ban revolving‑credit facilities. Because Bajaj Finance’s consumer‑lending business relies heavily on reusable credit limits, investors fear the rule could hurt earnings, despite the company reporting a strong first‑quarter FY 2026‑27 with a 27% rise in net profit to ₹5,985.75 crore and a 20% jump in revenue.

Analysts expect the RBI’s proposal, if formalised, could reshape the NBFC sector’s product mix and affect investor sentiment across India’s financial markets.