RBL’s strategy is to tap underserved customer segments and strengthen its presence in Tier-3 and Tier-4 cities, markets that bigger private banks are not pursuing aggressively.
“If we can identify micro-segments that yield even a few thousand crores, it’s good business for us,” Kumar Ashish, head, retail assets and collections at RBL Bank told ET in an interview. “The idea is to grow secured retail while keeping operational costs in check. We are exploring digital solutions for valuation, legal processes, and charge creation, and evaluating collateral types that larger banks haven’t tapped so far.”
AgenciesLoans against property would range from ₹5 crore at the upper prime end to ₹10 lakh in the lower micro segment. Likewise, working capital and term loans aimed at MSME customers would range from ₹50 lakh to ₹25 crore.
RBL, which already offers tractor financing across more than 300 districts, now plans to leverage this network to grow its two-wheeler and small commercial vehicle financing business. “While the industry will grow at 13-15%, we can create a sustainable 20% growth year-on-year,” said Ashish. “With the customer segments that we are focusing on, our yields will get better. We also want to calibrate our retail book to 60% secured from the current 54.65%, with the remainder continuing to be unsecured.”
Ashish added that RBL’s 550 branches, earlier focused primarily on deposits, are now being used to drive mortgages and business loans. Similarly, its 1,500-strong business correspondent network, once focused mainly on microfinance customers, is being deployed to expand to other segments, especially micro-LAP and gold loans.As of June, RBL Bank’s total advances stood at ₹94,431 crore, with secured retail loans accounting for ₹30,946 crore and unsecured loans at ₹25,679 crore.