RBL Bank shares tank on Bajaj Finance co-branded card decision; here are stock price targets
Shares of RBL Bank Ltd tanked 4 per cent in Monday’s trade after the bank said it has entered into a mutual agreement with its co-branded credit card partner, Bajaj Finance Ltd, to stop issuance of new co-branded credit cards under the partnership. The key reasons it gave was the fact that Bajaj Finance was looking forward to exiting the co-branded credit card business line segment in totality.
RBL shares fell 4.06 per cent to Rs 148.70 on BSE, taking its year-to-date fall to 47.71 per cent. Analysts noted the bank has decided to go slow in terms of new card issuance — down from around 2-2.5 lakh new cards per month to around 1 lakh per month. This made the new Bajaj Finance co-branded credit card origination less economically, said…
