{"id":184613,"date":"2023-12-11T06:39:17","date_gmt":"2023-12-11T06:39:17","guid":{"rendered":"https:\/\/precoinnews.com\/?p=184613"},"modified":"2023-12-11T06:39:17","modified_gmt":"2023-12-11T06:39:17","slug":"rbl-banks-business-trajectory-remains-intact","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/rbl-banks-business-trajectory-remains-intact\/","title":{"rendered":"RBL Bank’s business trajectory remains intact"},"content":{"rendered":"

‘We are committed to achieving the targets we had outlined.’<\/strong><\/p>\n

The Reserve Bank of India’s recent decision to increase risk weights on unsecured loans does not necessitate any capital raise by RBL Bank, MD & CEO R Subramaniakumar<\/strong> tells Manojit Saha<\/strong>\/Business Standard<\/em> in a video interview.<\/p>\n

What is the impact of higher risk weight on RBL Bank’s unsecured loans?<\/strong><\/p>\n

Our bank had a total capital adequacy ratio of 17.07 per cent and Tier-I (entirely CET1) of 15.15 per cent as on September 30, 2023 (inclusive of profits for the half year).<\/p>\n

The impact is about 65 basis points (bps) on the CET1 of the bank as on September 30, 2023, largely on account of credit cards.<\/p>\n

This regulatory change has been under discussion for some time and is a step in the right direction by the regulator.<\/p>\n

Our bank has been taking steps to accelerate growth in newer secured business segments such as housing, business loans, vehicles, and gold, all of which are lower risk weight products.<\/p>\n

For example, housing averages a risk weight of 35-40 per cent, gold loans come with zero risk weight.<\/p>\n

I want to reiterate that this circular does not necessitate any capital raise by the bank and we have sufficient capital levels for meeting our stated growth plans.<\/p>\n

Our business trajectory remains intact and we are committed to achieving the targets we had outlined.<\/p>\n

Does this mean that the bank will need to raise capital in the near future?<\/strong><\/p>\n

We have sufficient capital and at this stage don’t envisage any need to raise fresh capital.<\/p>\n

Our capital position remains well above our internal thresholds, as well as naturally, the regulatory minimum, which is at 11.5 per cent.<\/p>\n

What are the key changes that you introduced after taking charge in June last year?<\/strong><\/p>\n

I did not bring a plethora of people from outside who would have taken time to settle down.<\/p>\n

The business would have been postponed by a couple of quarters, which I fast-forwarded by utilising the team within. That is the first decision I took.<\/p>\n

The second one was that the bank already had around 500-plus branches, which were primarily looking at liability.<\/p>\n

I just changed that. They’re no longer liabilities; they’re assets too.<\/p>\n

That means the branches have also started looking at assets as a sales point.<\/p>\n

So the branch is not a sales point for liability, but it is a sales point for assets, also.<\/p>\n

That is a big change, which I brought in, which requires a lot of mindset change.<\/p>\n

The third change was that when I said that the branches can be assets, we did not have a multiple asset product at all.<\/p>\n

In the last six to nine months, we introduced multiple products.<\/p>\n

Another important thing that I did was technology. The bank had already established a fairly robust technology, which is leveraged for launching all these products.<\/p>\n

The results are in front of you. In Q2, all the new products grew by 30 per cent year-on-year (Y-o-Y). We are on track and in the correct direction, as planned.<\/p>\n

What is the bank’s credit and deposit growth target for the current financial year?<\/strong><\/p>\n

Our minimum growth will not be less than 20 per cent in advances. And we divide advances into three parts.<\/p>\n

The wholesale banking will be more or less flattish. But within wholesale banking, it is commercial banking — which we call SME banking — that will grow between 15-17 per cent.<\/p>\n

Last quarter, you would have seen around 17 per cent growth.<\/p>\n

Entire retail put together will grow by around 30-35 per cent. And within that, the secure products will grow faster.<\/p>\n

On deposits, we will grow between 18 and 20 per cent. We have achieved around 13 per cent in the last quarter.<\/p>\n

In CASA, we grew by 12 per cent. We are working to maintain the same pace of growth in CASA also.<\/p>\n

Feature Presentation: Aslam Hunani\/Rediff.com<\/em><\/strong><\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

‘We are committed to achieving the targets<\/p>\n","protected":false},"author":3,"featured_media":184612,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23051],"tags":[],"yoast_head":"\nRBL Bank's business trajectory remains intact - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/business\/rbl-banks-business-trajectory-remains-intact\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RBL Bank's business trajectory remains intact - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"‘We are committed to achieving the targets\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/business\/rbl-banks-business-trajectory-remains-intact\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-11T06:39:17+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2023\/12\/RBL-Banks-business-trajectory-remains-intact.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/business\/rbl-banks-business-trajectory-remains-intact\/\",\"url\":\"https:\/\/precoinnews.com\/business\/rbl-banks-business-trajectory-remains-intact\/\",\"name\":\"RBL Bank's business trajectory remains intact - 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