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RBL Bank shares fell 5% as it ended its eight-year credit card partnership with Bajaj Finance. Learn how this decision impacts both companies.
RBL Bank and Bajaj Finance End Partnership
RBL Bank shares dropped 5% after mutually ending its co-branded credit card partnership with Bajaj Finance. This eight-year-long collaboration, initiated in 2016, had significantly evolved, leading to this decision.
Impacts on RBL Bank and Bajaj Finance
Brokerages downgraded RBL Bank’s target price, citing slower growth. Bajaj Finance also faced scrutiny for exiting the co-branded card business, despite earlier plans to become a leading card issuer.
Market and Analyst Reactions
Analysts noted that the RBI’s influence might have contributed to the decision. Motilal Oswal retained a “neutral” rating for Bajaj Finance, while Emkay Global slashed RBL’s target price but maintained a “Buy” rating for long-term prospects.
