Bajaj Finance, SBI Cards Rally as RBI Governor Eases Concerns Over Unsecured Loans

Shares of key FinNifty players like Bajaj Finance and SBI Cards surged up to 4% on June 6, after RBI Governor Sanjay Malhotra shared a positive update on the health of unsecured loans and credit card portfolios. The rally came on the back of the Monetary Policy Committee (MPC) meeting outcome, which included a significant 50 basis points rate cut and a 100 bps reduction in the Cash Reserve Ratio (CRR).

Stress in Unsecured Loan Segment Has Abated: RBI Governor

While announcing the monetary policy update, RBI Governor Sanjay Malhotra stated that the earlier stress in unsecured personal loans and credit card receivables has eased. This statement boosted investor confidence in non-banking financial companies (NBFCs) and credit card issuers, sparking a notable uptrend in FinNifty stocks.

“The stress witnessed earlier in retail segments like unsecured personal loans and credit card receivables portfolio has abated,” said Malhotra.
However, he noted that stress in the micro-finance segment continues to persist.

NBFCs Recalibrating Risk Strategies

Governor Malhotra also mentioned that banks and NBFCs operating in the retail credit space are already adjusting their business models. These institutions are now strengthening credit underwriting practices and improving collection efforts to ensure there’s no undue build-up of risk going forward.

This reassurance from the central bank has improved the outlook for financial services companies, especially those deeply involved in the unsecured lending and credit card segments.

Market Reaction: SBI Cards and Bajaj Finance Lead the Rally

On the back of this announcement, SBI Cards and Payment Services surged 4% to hit a fresh 52-week high of ₹982 apiece. Meanwhile, Bajaj Finance shares climbed nearly 4% to ₹9,256.50, reflecting strong investor sentiment following the RBI update.

The broader FinNifty index also showed strength, as several NBFC and fintech stocks posted gains in anticipation of improved stability in the unsecured loan sector.