Bajaj Finance Shares Up by More Than 2% After RBI Rate Cut

Bajaj Finance shares have risen after RBI cut down the repo rate by 25 basis points (0.25%) earlier in the day today. At 11:30 a.m. IST, 5^th December, 2025, the stock price is up by 2.71% trading at Rs 1,057. Nifty 50 index is up by 0.38% at this time.

Bajaj Finance’s cost of funding may get reduced due to interest rate cut

The interest rate cut is beneficial for Bajaj Finance and other non-banking financial companies (NBFCs). It lowers their cost of funding. NBFCs mainly raise funds from banks, financial institutions and by floating debt such as commercial paper and bonds. These funds they then lend to their customers. The difference between the interest that they charge on the loans that they have given to customers and the interest that they pay on the funds that they have borrowed to lend is their net interest income (NII). NII of Bajaj Finance may therefore go up because of this interest rate cut.

The interest rate cut may also reduce the interest rate on the loans that Bajaj Finance charges from its customers. This in turn will increase the demand for these loans. This will increase the assets of the company and also its revenues.

Bajaj Finance operates through its subsidiaries like Bajaj Housing Finance, Bajaj Financial Services and Bajaj Financial Securities. Many of its subsidiaries stand to gain from this interest rate cut. Demand for the two wheeler and three wheeler loans that the company gives may also go up because of this rate cut.

Bajaj Finance shares are up by more than 51% in 2025

Year-to-date (YTD) in 2025, Bajaj Finance shares have gained 51.69%. Nifty 50 has gained 10.07% in this period. Bajaj Finance shares have outperformed the Nifty 50 index by more than 41% this year.

Nifty Financial Services index has gained 18.62% YTD in 2025. Bajaj Finance is a constituent of Nifty Financial Services index. It has a current weight of 5.70% in the index. Bajaj Finance shares have outperformed this index by more than 33% this year.

Average Price-to-Earnings (P/E) ratio at which shares in Nifty Financial Services index are currently trading is 18.2. Bajaj Finance shares are currently trading at a 12-month trailing P/E ratio of around 35.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: RBI, NSE