Bajaj Finance has decided to exit the co-branded credit card space as it has ended its eight-year tie-up with RBL Bank and DBS Bank India, which started a couple of years back.

Bajaj Finance's decision to exit co-branded partnerships follows regulatory changes by the Reserve Bank of India, which limit non-banking partners' role in such agreements.

RBL Bank shares fell 5% after ending its credit card partnership with Bajaj Finance. Brokerages downgraded RBL’s target price, while Bajaj Finance also saw a decline in shares.

RBL shares fell 4.06 per cent to Rs 148.70 on BSE, taking its year-to-date fall to 47.71 per cent. Nirmal Bang values RBL Bank at 0.6 times September 2026 adjusted book value (ABV) against 0.75 times September 2026 ABV earlier.

RBL Bank's credit card origination is now through direct sales and other brand partners and via Bajaj Finance is down to 36% from 65% to 70% around 18 months ago.