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RBL aims to expand NIMs, credit cards
June 19, 2023
RBL Bank is targeting to expand its net interest margin (NIM) to over 5.2 percent by the end of FY24 by upping the share of higher-yielding assets in its loan book, a top official has said. The private sector lender will continue to maintain the share of unsecured loans like credit cards and microfinance by growing them at over the 20 percent overall loan book increase targeted for every year till FY26, R Subramaniakumar told PTI.
The bank reported an expansion in NIMs to over 5 percent in the March quarter, in line with the industry trend.
“NIM will be 5.2-5.3 percent by the end of the year (FY24). The mix of products will deliver the higher yield,” he said.
Subramaniakumar said the bank is targeting to increase the share of secured retail assets like mortgage loans, loans against property, and two and four-wheeler loans, which will yield higher.
He admitted that given its relatively smaller size, it has to offer higher deposit rates to get the required liabilities to fund the asset growth of over 20 percent.
The higher deposit rates alone will have a 0.30 percent drag on the NIMs, he said, adding that the same will be compensated by replacing the asset profile.
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