RBL Bank moving to higher-margin loan segments, guides for 20% credit growth
RBL Bank MD & CEO, R Subramaniakumar told CNBC-TV18 how their effort toward shifting to high-margin loan products will help counter the rising costs of funds.
RBL Bank is working to transition from low-margin loans to those with moderate and higher margins. In a conversation with CNBC-TV18, the bank's MD & CEO, R Subramaniakumar discussed how this shift will help the bank offset even a slight increase in deposit costs.
While he expects the cost of deposits to move up, Subramaniakumar is confident of maintaining the net interest margin (NIM) around the current levels.
"You could have noticed that before reclassification our NIM improved by 5 basis points, moving forward we will inch towards the 5%. In a consolidated base, we will be posting about 5.5% and in that range,” he said.
RBL Bank targets overall credit growth of 20%, he said, pointing to the consistent improvements in credit growth over the past two quarters.
The bank introduced several new products in recent quarters, and Subramaniakumar pointed out that these products are already gaining traction.
“You would have noticed that our quarterly disbursement of all the retail, excluding cards, is in the range of around ₹4,000 crore and it will continue to do so.”
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The housing and mortgage loan segments would continue to maintain a disbursement range of ₹800 crore each. The bank is launching new Small and Medium-sized Enterprise (SME) and Micro, Small, and Medium-sized Enterprise (MSME) products, adding to its diverse offerings.
Shares of RBL Bank are down around 2% at ₹237.65. The stock has remained flat over the past month.
(Edited by : Shweta Mungre)
First Published: Oct 23, 2023 3:59 PM IST
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