Bajaj Finance and L&T Finance Oct 2026

I am currently researching Bajaj Finance and L&T Finance. A lot has happened in a few weeks.
Here’s what I found:

1. RBI raised interest rates
On 7 October (my birthday btw), the RBI raised the repo rate from 5.25% to 5.50%, its first hike since February 2023.
NBFCs borrow money to lend it. When rates rise, their own borrowing gets costlier, and they can’t always pass that on to customers right away. So profits can get squeezed for a while.

2. RBI wants to stop NBFCs offering “revolving” loans
In August, the RBI proposed that NBFCs should offer only regular term loans, not reusable credit lines like flexi loans. It’s still a draft.
• Bajaj Finance: brokerages estimate flexi loans at roughly 13–15% of its loan book. The stock fell nearly 6% during the day the draft came out.
• L&T Finance: almost no exposure. If the rule becomes final, LTF is barely affected.

3. Both companies are raising money, in very different ways
Bajaj Finance plans to raise up to ₹17,500 crore through new shares (₹11,700 cr from institutions + ₹5,800 cr from its promoter, Bajaj Finserv), subject to shareholder approval. Its AUM was up 26.5% year-on-year at the end of September.
It’s growing fast and wants more capital to keep going. Existing shareholders get slightly diluted.
L&T Finance raised ₹800 crore through 10-year bonds at 8.57% interest. These bonds count toward its regulatory capital, but they’re debt that must be repaid, and no new shares are issued.

Overall, Bajaj has the stronger business but faces greater regulatory risk.
LTF is safer on regulation, but more sensitive to rising borrowing costs.
That helps explain why both stocks have fallen from their highs even as their businesses grew.

Which risk worries you more, regulation or rising rates? 👇
Personal research, not investment advice.