RBL Bank: The bank has revealed its strategy for growth, now the focus will increase here

News Topical, Digital Desk : RBL Bank has planned to increase the net interest margin from its retail assets. According to a bank official, the bank is increasing its focus on high yield products so that the margin can be improved. Under this strategy, the bank will start commercial vehicle financing and financing of old four-wheelers in the next three months.

What is the plan

Kumar Ashish, who heads the bank's retail assets and collections department, said that the share of secured retail loans is currently around 31 per cent, while maintaining which the target has been set to increase the NIM. However, he did not clarify the NIM target. Recently, the bank's total NIM had declined from 5.45% to 4.89%, due to which the net profit fell by 76% to Rs 86 crore in the fourth quarter. The bank is now targeting 5.1% NIM with improvement. Focus on tier-2 and tier-3 cities Along with this, RBL Bank is now planning to penetrate deeper into tier-II and tier-III cities, where it already has a network of 550 branches and more than 1,500 business correspondent touchpoints. The bank will prepare the product portfolio by understanding the needs of the customer and will increase focus on segments like tractor finance, gold loan, home loan, business loan and upcoming new products. How will the bank deal with the competition? Ashish admitted that RBL Bank is a "challenger bank" in many retail segments and will have to face aggressive competition. For this, the bank will target those customers whose financial needs are not yet met, and will ensure faster processing using digital tools. In home loans, the bank will focus on "affordable housing", while in CV financing, mid-segment customers will be targeted to increase margins. Plan to tie-up in used car loans For used 4-wheeler financing, the bank aims to tie-up with car reselling portals, so that customers can also get loan quotations on the same platform after choosing a car on the website. Signs of improvement in MFI business Regarding the microfinance (MFI) business, Ashish said that the collection has improved since April, and this trend continues. He told that the collection was at its lowest level in December 2023, but since then the situation is improving continuously. How was the performance of the stock? In the last session, the stock closed at 240 with a gain of about one percent. The stock had registered a year's low of 146 at the beginning of the year. At the same time, in June last year, the stock had registered a year's highest level of 270.

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