Bharti Airtel Shares Slide Nearly 4% After ₹20,000 Crore NBFC Expansion Plan
- 24th February 2026
- 12:10 PM
- 3 min read
Summary
Bharti Airtel share price fell nearly 4% after the telecom major announced a ₹20,000 crore capital plan for its NBFC arm, Airtel Money. The move signals a major push into digital lending, but investors reacted cautiously to the higher capital commitment and execution risks.Mumbai | February 24
Bharti Airtel shares dropped as much as 3.78% to ₹1,921.80 on the NSE in early trade on Tuesday, making it one of the top losers on the Nifty 50 during morning trade. The decline came a day after the company unveiled plans to inject ₹20,000 crore into its NBFC subsidiary, Airtel Money Limited.
The stock opened weak and extended losses as investors digested the scale of the proposed capital deployment.
Airtel to Infuse ₹20,000 Crore in NBFC Arm
In a company statement, Airtel said it will capitalise its NBFC arm with ₹20,000 crore over the next few years.
Airtel will fund 70% of the amount. The remaining 30% will come from the promoter group through Bharti Enterprises Limited.
Airtel Money received its NBFC licence from the Reserve Bank of India on February 13, 2026. The company said the expansion supports its plan to address India’s credit gap and strengthen financial inclusion.
From Lending Partner to Direct Lender
Over the past two years, Airtel operated as a Lending Service Provider (LSP). It partnered with banks and financial institutions to facilitate loans worth more than ₹9,000 crore.
Under the NBFC structure, Airtel can now lend directly and carry loans on its own balance sheet. This allows it to retain a larger share of lending income.
The company relies on a digital underwriting engine backed by over 500 data scientists. Management says this system has helped maintain low delinquency levels during the pilot phase.
What Management Said
Gopal Vittal, Executive Vice Chairman of Bharti Airtel, said the company has built a scalable digital credit platform over the past two years.
He said the NBFC move builds on that foundation and aims to create a differentiated digital lending business focused on trust and innovation.
Scale Opportunity, But Higher Capital Risk
India’s formal credit-to-GDP ratio stands at about 53%, according to Care Edge Ratings. That leaves room for lending growth.
However, the NBFC model requires higher capital. Companies must maintain a minimum capital adequacy ratio of 15%. Analysts estimate the ₹20,000 crore base could support a loan book of nearly ₹1 trillion over time.
Investors are weighing:
- Increased capital intensity
- Longer gestation for returns
- Competitive pressure, including from Jio Financial Services
Leveraging Airtel’s 400 Million Users
Airtel plans to distribute credit products through its Airtel Thanks app and other digital platforms. It has more than 400 million telecom subscribers.
The company believes this digital reach can lower customer acquisition costs compared to traditional lenders.
Why the Stock Reacted
The market often rewards asset-light telecom models. The NBFC strategy shifts part of Airtel’s profile toward a balance-sheet-driven business.
While the financial services push may create long-term value, Tuesday’s fall reflects near-term caution around capital allocation and execution.
Bottomline
Bharti Airtel’s ₹20,000 crore NBFC plan marks one of its biggest strategic moves beyond telecom. The opportunity in digital lending is large. But investors want clarity on growth pace, asset quality and return on capital before turning positive on the shift.
With inputs from Money Control.
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