The recent pause in interest rate hikes could mark the peak of the interest rate cycle which is very positive for wholesale borrowers, such as Non-Banking Financial Companies (NBFCs) and smaller banks. This pause, combined with strong Q4 updates, has led to renewed vigour in Bajaj Finance and momentum for many NBFCs. However, it is important to watch the profitability of these companies given the recent increase in rates for bulk borrowers who lack a strong Current Account Savings Account (CASA) franchise.