RBL Bank’s shares dropped 4% in the early morning after the private lender announced the end of its eight-year partnership with Bajaj Finance for co-branded credit cards. The move marks a strategic shift as both companies adapt to evolving business dynamics and regulatory requirements.
Partnership Ends Amid Changing Synergies
RBL Bank said the decision was made after several discussions with Bajaj Finance over the past months. The bank noted that the synergies driving the partnership had shifted significantly over time. RBL Bank also clarified that this situation would not impact its overall credit card business strategy. The cards issued previously will function as it was.
New Collaboration with NBFCs
RBL Bank focuses its vision on diversifying partnerships. Plans to partner with NBFCs like Mahindra & Mahindra Finance, TVS Finance, and consumer brands such as IOC and IRCTC. “The bank remains committed to expanding its credit card business as a key customer acquisition driver,” added in Bank’s statement.
Market Reaction in Stock Prices
As the market opened today, RBL Shares were at Rs 148.65 on the NSE. Which is 4.05% down from. According to CNBC 11 out of 23 analysts suggest to Buy shares, Whereas 6 analysts suggest a hold strategy and the rest suggest selling.
Future Projections
Investec India emphasized that Bajaj Finance was a key sourcing partner for RBL Bank, and the decision to end the partnership was likely driven by strict regulatory requirements for co-branding arrangements. The brokerage projected that this shift could reduce the bank’s credit growth by 200 basis points to 13–14% in FY25, alongside a decline in Net Interest Income, creating a need for revision of growth estimates.
Despite all these, RBL Bank remains optimistic about its future outlook. The lender expects growth to rebound in the second half of FY25 as it strengthens ties with new co-branding partners, ensuring sustained momentum in its credit card business and broader expansion goals.
