RBL Bank Targets Growth with Strategic Shift in Retail Assets

RBL Bank is strategizing to boost its net interest margins by reorienting its portfolio towards higher-yielding retail assets, according to a senior official. The bank plans to launch commercial vehicle and used four-wheeler financing soon, aiming for a 5.1% increase in overall NIMs, while maintaining retail loan mix around 31%.

The bank's focus is on widening its presence in tier-II and III cities with its extensive distribution network. It aims to deliver quicker credit access across various categories, including tractor and gold loans. Despite facing aggressive competition, RBL Bank seeks to cater to niche customer segments using digital loan insights and cost control.

In the microfinance sector, improvements in collections have been observed, with a positive outlook anticipated for FY26. RBL Bank continues to navigate challenges in Tamil Nadu and Karnataka and is cautiously reducing exposure in politically sensitive regions.