homeeconomy NewsIIFL Finance sees minimal impact on borrowings from RBI's new unsecured lending rules
IIFL Finance sees minimal impact on borrowings from RBI's new unsecured lending rules
IIFL Finance President and Group CFO, Kapish Jain, also discussed the implications of these changes on the Micro, Small, and Medium Enterprises (MSMEs) sector.
Kapish Jain, President and Group CFO of IIFL Finance, in a chat with CNBC-TV18 discussed his concerns about the impact of the Reserve Bank of India's (RBI's) recent changes in unsecured lending norms.
He noted that the new norms increase the risk weight assets (RWA) for banks lending to Non-Banking Financial Companies (NBFCs). However, the overall impact on IIFL Finance will be limited, he said.
"Around 15% of our borrowing might be impacted. So the impact will be limited," he said.
The RBI on November 16 revised the risk weights for unsecured lending, affecting personal and credit card loans. This means banks need to set aside more capital for all such loans.
Jain pointed out that the changes could affect borrowing costs for Micro, Small, and Medium Enterprises (MSMEs), especially in the SME sector, reflecting broader implications for the financial landscape.
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