Negative impactCorporate Action
Bajaj Finance, L&T Finance, HDB among NBFCs facing higher funding costs; EPS cuts could reach 12%
Economic Times 2 hrs ago·2 Oct 2026, 9:16 pm
NBFCs such as Bajaj Finance are seeing their funding costs climb as banks choose to use fresh FCNRB inflows to reduce their own borrowing costs and to lend to low‑risk segments like mortgages and large corporates. This shift leaves NBFCs to tap more expensive sources of finance.
The higher cost of funds directly squeezes profit margins, prompting analysts to flag possible earnings‑per‑share cuts of up to 12% for the sector. For investors, tighter margins could translate into slower earnings growth and affect the stock’s valuation.
Going forward, watch for any RBI guidance on NBFC funding, how banks continue to allocate FCNRB resources, and whether Bajaj Finance announces cost‑mitigation measures. The next earnings report will be key to see if the projected EPS reductions materialise.
Excerpt from Economic Times
Published On Oct 3, 2026 at 02:46 AM IST Cost-of-fund pressure could result in 1-12% earnings per share (EPS) cuts for covered non-banking financial companies ( NBFCs ) over FY27F-28F, while a 50-60 basis point rate-hike scenario could result in a 1-8% hit to FY27F EPS. AAA and AA+ rated NBFC bond yields have already…Read the original at Economic Times
Affected stocks
Bearish2 stocks
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns Bajaj Finance (BAJFINANCE).
- Category: Corporate Action.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
- Also mentions LTF.
Why it matters
A meaningful update for Bajaj Finance worth tracking. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
