PB Fintech Shares Plunge 36% After RBI Commission Cut Proposal

Shares of PB Fintech slid 36% on Thursday, the steepest one‑day fall since its market debut in November 2021—an erosion of ₹31.426 cr in market value that eclipses the company’s cumulative ₹21.342 cr revenue over eight years.

The firm posted FY26 revenue of ₹6.794 cr, a 12% rise from ₹6.054 cr in FY25, and net profit of ₹670 cr, its first profit after consecutive losses through FY23. According to the BSE filing, retained earnings remain negative at ₹1.325 cr.

India’s Insurance Regulatory and Development Authority (IRDAI) unveiled a proposal to cap insurers’ commission rates and trim management expenses by one‑half to two‑thirds across health, term and motor lines. The move targets distribution cost discipline, but could erode fee pools for banks and digital brokers.

Jefferies’ research note warned that a 10% cut in new‑business commission rates would translate into a 10‑12% decline in PB Fintech’s earnings, potentially spiralling into deeper losses for its partner insurers.

The ripple effect was visible across the fleet: Turtlemint Fintech Solutions fell 20%, Max Financial Services and L&T Finance each slid about 10%, and HDFC Life Insurance dipped 6.2%. A collective ₹1.54 lakh crore was shed from 18 insurance, distributor and lender stocks.

Looking ahead, the proposed commission caps are slated to take effect in FY28, likely compressing bancassurance income—Axis Bank’s credit‑protection fees contributed 9% of FY26 profit before tax, while HDFC Bank’s share was 7%. Investors will watch the next quarterly filing for guidance amid the regulatory uncertainty.