Tag: nbfc

Gold loans shine the brightest in banks’ loan portfolio, BFSI News, ET BFSI

Banking & Finance

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Gold loans have emerged as the fastest-growing major loan segment as people have pawned their jewellery and lenders look at avenues of low-risk growth. Outstanding loans against gold jewellery stood at Rs 62,926 crore as on August 27, up 66% on a year-on-year basis, according to the Reserve Bank of India (RBI) data.

Gold loans are often used to finance consumption spending, such as children’s education, weddings, illnesses or to meet household expenses during distress.

Public sector banks have also entered the segment to further grow their retail business. Despite regulatory arbitrage of higher loan-to-value lending in March 2021, banks have continued aggressively disburse gold loans.

Gold loans were up 1% on month in August 2021 as restrictions during COVID-19 eased and economic activities grew.

Loan demand picked up from the beginning of July as COVID-19 cases started declining. Gold loans via non-banking finance companies (NBFCs) had reported higher customer walk-ins.

LTV impact

However, gold loans have grown a mere 3.6% YTD, which is in contrast with the 54% CAGR seen in gold loan growth over the past two years.

RBI had raised the LTV of 90% on gold loans, which allowed banks to lend up to 90% of the value of the collateral.

However, it withdrew special allowance for banks from April 2021, impacting loan growth.

The average ticket size of loans that customers are opting for is Rs 55,000-60,000, which are rising for many lenders, showed growing signs of distress.

Gold loan NBFCs saw higher competition in the gold loan business last fiscal as banks grew their portfolio taking advantage of the special LIV allowance given to them by the RBI.

The expansion

With growth returning, gold financiers are now gearing up to tap the expected surge in gold loans.

Muthoot FinCorp has expanded its physical network by more than 100 new branches, mainly in the north, east and west regions of India, most of which were in rural and semi-urban areas. The NBFC had opened 70 branches in FY20.

Muthoot’s gold asset under management (AUM) grew at a compound annual growth rate of 12% between FY15 and FY20. In FY21, the portfolio grew 27%.

Pune-based Bajaj Finance has increased its gold loan branches from 480 to 700 in the last financial year and plans to add 100 plus branches this fiscal.

Its loan book grew 52% last year to Rs 2,300 crore, while it saw an increase in ticket sizes from Rs 75,000 to Rs 85,000 last year.

Shriram City Union Finance is also looking to ramp up its gold financing business this financial year, changing its strategy of focusing on other loan portfolios.



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P2P lending machine fires on all cylinders amid slackened bank loan disbursals, BFSI News, ET BFSI

Banking & Finance

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It has never been better for peer-to-peer (P2P) lending platforms, which are seeing a considerable increase in the number of people wanting to lend or borrow money. While slackened loan disbursals by banks and other institutional lenders have driven borrowers to peer-to-peer lenders, low fixed-income returns are prompting rich investors to lend money on these platforms at rates ranging from 10% to 18% per annum.

P2P lending is the practice of lending money to individuals via an online platform that connects lenders with borrowers. This mode is useful for both lenders and borrowers because the former can earn a higher interest rate (than bank savings account or many other debt instruments) and the latter can obtain funds (unsecured loans) at lower rates than what banks or nonbanking financial companies (NBFCs) offer. India has nearly 20 P2P lenders, with a combined outstanding loan book of around ₹5,000 crore. These entities are regulated by the RBI.

“We do nearly ₹130 crore worth of loan disbursals every month. Over the past one year, we have grown over 30 times,” said Rajat Gandhi, founder and CEO of Faircent, which claims to have a loan book worth ₹2,000 crore. “Our volumes shot up after we rolled out a string of new products for both lenders and borrowers. At a portfolio level, we are able to deliver 12-15% returns, after adjusting for expenses and defaults,” he adds.

The bulk of the lenders filling up the rosters of prominent P2P platforms are return-hungry retail investors and traders with surplus cash flows. Several high net worth individuals and family offices are writing large cheques favouring borrowers on these platforms.They are prompted to lend on platforms because their traditional fixed-income investments – such as bank fixed deposits, savings accounts, debt MFs, debentures and corporate FDs – are yielding 3-7% on an annual basis.

Diversifying Investment Portfolio

“Apart from P2P lending, there’s no asset class that is yielding 14-16% annual returns in the current scenario,” said V Shankar, founder-director, I-lend, a P2P platform that is planning to restart operations after it stopped loan disbursals last year, when the first wave of Covid-19 struck the country. “We have lenders asking us to resume operations. There’s a lot of interest now. With macroeconomic factors looking good, and people having enough savings due to WFH, there’s more willingness to lend at a higher interest rate.”

For lenders (investors), giving loans on a P2P platform is a way to diversify their investment portfolios even further. Many a time, they route their stock market gains or monthly surpluses to generate higher returns. A lot of financial advisors and wealth managers are also advising their clients to lend on P2P platforms, but they do not recommend an exposure exceeding 10% (of the total investment portfolio) to this asset class.

Borrowers are flocking to P2P lenders because most banks and NBFCs have gone slow on disbursing personal loans to customers with relatively lower credit scores. Also several fintech and digital lenders (especially those that did small-ticket, short-tenure, pay-day loans) have been put out of business by law enforcement agencies a few months ago, as they indulged in unethical collection methods to recover loans. This has forced borrowers to tap the peer-to-peer network for funds. The loan ticket size of most P2P lenders ranges between ₹50,000 and ₹70,000 – often given for a period of 12 months. These loans are disbursed at 10-18% interest rates, depending on the credit profile of the borrower.

“The quality of borrowers has gone up because we get a lot of bank/NBFC customers as well these days. There is a lot of awareness about credit now,” said Bhavin Patel, founder-CEO of LenDen Club, which currently has a loan book worth ₹700 crore. “Even new-to-credit customers are knowledgeable about various loan products. This has helped P2P business grow considerably over the past three years. Compared with pre-Covid levels, we are doing 12 to 15 times more transactions now,” he adds.



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RBI caps IPO funding by NBFCs at ₹1 cr per borrower

Banking & Finance

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The Reserve Bank of India on Friday announced a scale-based regulation of non-banking finance companies, which include a ceiling on IPO funding per borrower as well as changes in the minimum net owned fund, classification of non-performing assets, and capital requirements.

Under the new framework, there will be a ceiling of ₹1 crore per borrower for financing subscription to an initial public offering (IPO).

“NBFCs can fix more conservative limits,” the RBI said in the ‘Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs’.

Layer-based structure

While the overall guidelines shall be effective from October 1, 2022, the instructions relating to the ceiling on IPO funding will come into effect from April 1, 2022.

Under the new framework, the regulatory structure for NBFCs shall comprise four layers based on their size, activity, and perceived riskiness — base, middle, upper and top layer.

The RBI had issued a discussion paper on the topic in January this year and had sought public comments on it.

Sensitive exposure

In the discussion paper, the central bank noted that IPO financing by individual NBFCs has come under close scrutiny, more for their abuse of the system.

“While there is a limit of ₹10 lakh for banks for IPO financing, there is no such limit for NBFCs,” it had pointed out while mooting the proposal for the ₹1-crore cap.

In the new framework, the RBI has also proposed sensitive sector exposure norms for NBFCs in the middle and upper layers. “Exposure to the capital market (direct and indirect) and commercial real estate shall be reckoned as sensitive exposure for NBFCs. NBFCs shall fix board-approved internal limits for SSE separately for capital market and commercial real estate exposures,” the RBI said. A sub-limit within the commercial real estate exposure ceiling shall be fixed internally for financing land acquisition.

Housing finance companies shall continue to follow specific regulations on sensitive sector exposure, it added.

Further, the regulatory minimum net owned fund (NOF) for NBFC-Investment and Credit Companies, NBFC-MFI and NBFC-Factors shall be increased to ₹10 crore by March 2027 through a prescribed glide path.

The extant NPA classification norm also stands changed to the overdue period of more than 90 days for all categories of NBFCs. A glide path is provided to NBFCs in the base layer to adhere to the 90 days NPA norm, the RBI said.

Considering the need for professional experience in managing the affairs of NBFCs, the RBI said at least one of the directors should have relevant experience of having worked in a bank or an NBFC.

“Over the years, the sector has undergone considerable evolution in terms of size, complexity, and inter-connectedness within the financial sector. Many entities have grown and become systemically significant and hence there is a need to align the regulatory framework for NBFCs keeping in view their changing risk profile,” the RBI said.

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Failure of any large NBFC may translate into a risk to its lenders: RBI Dy Governor M Rajeshwar Rao

Banking & Finance

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The reputation of the non-banking financial sector has been dented in recent times by failure of certain entities due to idiosyncratic factors, said Reserve Bank of India Deputy Governor M Rajeshwar Rao.

The challenge, therefore, is to restore trust in the sector by ensuring that few entities or activities do not generate vulnerabilities which go undetected and create shocks and give rise to systemic risk through their interlinkages with the financial system.

“Forestalling and where necessary, decisively resolving such episodes becomes a key focus of our regulatory and supervisory efforts,”Rao said at the CII NBFC Summit.

There are 9651 NBFCs across twelve different categories focussed on a diverse set of products, customer segments, and geographies.

As on March 31, 2021, the non-banking finance company (NBFC) sector (including housing finance companies/ HFCs) had assets worth more than ₹54 lakh crore, equivalent to about 25 per cent of the asset size of the banking sector.

“Therefore, there can be no doubt regarding its significance and role within the financial system in meeting the credit needs of a large segment of the society,” Rao said.

Over the last five years the NBFC sector assets have grown at cumulative average growth rate of 17.91 per cent.

The Deputy Governor underscored that: “Now, the non-banking sector has grown significantly and several NBFCs match the size of the largest Urban Cooperative Bank or the largest Regional Rural bank.

“In fact, few of them are as big as some of the new generation private sector banks. Further, they have become more and more interconnected with the financial system.”

He said NBFCs are the largest net borrowers of funds from the financial system and banks provide a substantial part of the funding to NBFCs and HFCs.

Therefore, failure of any large NBFC or HFC may translate into a risk to its lenders with the potential to create a contagion.

Failure of any large and deeply interconnected NBFC can also cause disruption to the operations of the small and mid-sized NBFCs through domino effect by limiting their ability to raise funds.

Rao emphasised that liquidity stress in the sector triggered by failure of a large CIC (core investment company) broke the myth that NBFCs do not pose any systemic risk to the financial system.

SBR framework

The Deputy Governor said a scale-based regulatory (SBR) framework, proportionate to the systemic significance of NBFCs, may be optimal approach where the level of regulation and supervision will be a function of the size, activity, and riskiness of NBFCs.

As regulations would be proportional to the scale of NBFCs, it would not impose undue costs on the Regulated Entities (REs).

Rao explained that: “While certain arbitrages that could potentially have adverse impact would be minimised, the fundamental premise of allowing operational flexibility to NBFCs in conducting their business would not be diluted.

“…There has been a consistent and conscious understanding that a “one size fits all” approach is not suitable for NBFC sector, which are a diverse set of financial intermediaries, with different business models, serve heterogenous group of customers and are exposed to different risks.”

The Deputy Governor urged NBFC promoters/ managements to create a culture of responsible governance in their respective organisations where every employee feels responsible towards the customer, organisation, and society.

He felt that good governance is key to long term resilience, efficiency and survival of the entities.

Customer protection

Rao underscored that protecting customers against unfair, deceptive, or fraudulent practices has to become top priority of every entity and permeate the organisation culturally and become a part of its ethos.

“Customer service would mean, amongst many other things, that a customer has similar pre-sale and post-sale experience, she/he is not disadvantaged vis-à-vis another customer because he or she approached the financial entity through a different delivery channel, and he or she has a right to hassle-free exit from the contractual obligation.

“This issue has been deliberated often enough and it’s time to act now,” the Deputy Governor said.

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Sebi issues revised reporting formats for issuers of non-convertible securities, BFSI News, ET BFSI

Personal Finance

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Markets regulator Sebi on Thursday came out with revised formats for limited review and audit reports to be submitted by entities that have listed their non-convertible securities. The revised formats are for limited review and audit reports for banks and NBFCs as well as other entities, excluding insurance companies.

Insurance companies would disclose limited review/ audit reports as per the formalities specified by Irdai, Sebi said in a circular.

The formats would be applicable for limited review reports for quarterly standalone financial results for banks and NBFCs as well as entities other than banks and NBFCs. Besides, it would have to be followed for audit reports for quarterly standalone as well as annual consolidated financial results to be submitted by all these entities.

Sebi said the circular will come into force with immediate effect.

The circular will also supersede circulars issued in November 2015 and August 2016 with respect to listed entities for disclosure of financial results that have listed non-convertible debt securities and non-convertible redeemable preference shares.

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Select NBFCs to now have internal ombudsman on lines of banks: Das

Banking & Finance

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With the objective of upping customer experience, the Reserve Bank on Friday announced an internal ombudsman scheme (IOS) to redress grievances at select non-banking finance companies (NBFCs).

The IOS will be on the lines of a similar system adopted at banks and will redress grievances related to deficiencies in service, Governor Shaktikanta Das said, announcing the new measure in the statement on regulatory policies along with the bi-monthly review of the monetary policy. “The increased significance, strength and reach of NBFCs across the country have necessitated having in place better customer experience including grievance redress practices,” he said.

Slew of measures

Das said over the last few years, the RBI has taken a slew of measures to improve consumer protection at NBFCs which include asking such lenders to appoint nodal officers to address grievances in 2013 and launch of the ombudsman scheme for NBFCs in 2018. “With a view to further strengthen the internal grievance redress mechanism of NBFCs, it has been decided to introduce the Internal Ombudsman Scheme (IOS) for certain categories of NBFCs which have higher customer interface,” he said.

There will be an internal ombudsman at the top of the NBFCs’ internal grievance redress mechanism to examine customer complaints which are in the nature of deficiency in service and are partly or wholly rejected by the NBFCs, he said, adding detailed instructions on the same will be issued separately.

Also read: FIDC seeks refinance mechanism for NBFCs

Meanwhile, Das also announced a six month extension in the facility which allows banks to on-lend through NBFCs and get the priority sector lending tag, till March 2022. He reminded that bank lending to registered NBFCs (other than micro-lenders) for on-lending to agriculture (investment credit), micro and small enterprises and housing (with an increased limit) was permitted to be classified as priority sector lending up to certain limits in August 2019.

Increased traction has been observed in delivering credit to the underserved/unserved segments of the economy through the scheme, which was last extended till September 30 in April, Das said.

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What is co-lending, and how will work?, BFSI News, ET BFSI

Banking & Finance

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-By Ishwari Chavan

Under RBI’s model, banks can co-lend with all registered NBFCs, including housing finance companies.


The co-lending model has been around in the BFSI sector for some time now, but after the Reserve Bank of India issued guidelines in November 2020, co-lending has become a response to ease the liquidity crisis in non-bank lenders. The method aims to enhance credit flow to productive sectors, and banks and non-banking financial companies (NBFCs) have been increasingly exploring co-lending opportunities.

What is RBI‘s Co-Lending Model, and how will it work?

RBI’s CLM is one wherein two lender firms, in this case a bank and an NBFC, come together to disburse loans. Under RBI’s model, banks can co-lend with all registered NBFCs, including housing finance companies.

As per the guidelines, NBFCs and HFCs facilitate the origination and collection of housing loans while banks leverage their balance sheet strength to house the majority of the loan. This means that 80% of the loan will reflect in the bank’s balance sheet, while 20% in that of NBFCs or HFCs.

In simple terms, banks will lend to NBFCs, and NBFCs will pass it on to the priority sectors, since they have a greater reach.

NBFCs will be the single point of interface for the customers and enter into a loan agreement with the borrowers. The agreement should contain the features of the arrangement and the roles and responsibilities of NBFCs and banks.

The ultimate borrower would be charged an all-inclusive interest rate.

Considering the lower cost of funds from banks and greater reach of NBFCs, the primary focus is to improve credit flow to the unserved and underserved sectors of the economy, also known as priority sectors, and make funds available to the ultimate beneficiary at an affordable cost.

The agreement should contain the features of the arrangement and the roles and responsibilities of NBFCs and banks.
The agreement should contain the features of the arrangement and the roles and responsibilities of NBFCs and banks.

RBI has prescribed that a portion of bank lending should be used for developmental activities, for the priority sector, which includes agriculture, MSMEs, housing, and so on.

According to norms, both public and private sector banks have to lend 40% of their net bank credit (NBC) to the priority sector and foreign banks have to lend 32% of their NBC.

How is co-lending beneficial for lenders and borrowers?

The partnership allows banks to lend more funds to sectors and regions they do not have reach in. With the greater reach of NBFCs, the model allows banks to meet their total priority sector lending (PSL), while NBFCs get bigger and top rated borrowers on its books.

It also allows NBFCs to source clients, perform credit appraisals and disburse a small part of the loan amount, and enables banks to expand their lending business.

The end borrower gets accessibility to loans at very affordable and competitive rates, and is in turn included in the country’s financial ecosystem.

Recent co-lending agreements

> Last week, U GRO Capital signed a co-lending agreement with IDBI Bank to provide formal credit to underserved MSMEs.

> Last month, Bank of India entered into a co-lending arrangement with MAS Financial Services for MSME loans, IIFL Home Finance signed an agreement with Punjab National Bank, and SBI signed an agreement with Paisalo Digital.

> In July, YES Bank and Indiabulls Housing Finance Ltd entered into a strategic co-lending agreement to offer home loans.



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HDFC Bank eyes strategic investor in NBFC arm, sees $9-bn valuation, BFSI News, ET BFSI

Banking & Finance

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Months after shelving plans to list its non-banking subsidiary, HDB Financial Services, HDFC Bank has initiated a formal process to rope in a strategic investor, said people aware of the matter.

The country’s largest private lender has appointed Morgan Stanley to handle this and feelers have gone out to global banks and domestic financial institutions already. The lender is expecting a valuation of Rs 60,000-67,500 crore ($8-9 billion) although the final contours will emerge only once firm offers are placed on the table, said one of the executives cited above.

Though the initial discussions are believed to be for a 20-25% stake, some potential suitors are keen on a path to control or joint control.

The discussions are preliminary in nature, but with the management confident of asset quality improving in a post-pandemic economy, this is the right time to kickstart a monetisation exercise, said experts. Some HDFC Group watchers also see this as a precursor to an eventual listing.

Loan Book, Footprint
“While it’s still unsure what will be the quantum of stake that HDFC Bank will part with, as the parent of HDB Finance, it wants to ensure it discovers the correct value for its NBFC (nonbanking finance company) in line with other non-bank lending peers,” said a person in the know.

As a policy, the bank doesn’t comment on market speculation, said the HDFC Bank spokesperson. HDB Financial Services didn’t respond to queries.

In June 2019, then HDFC Bank managing director and CEO Aditya Puri had hinted at a possible listing. That saw the stock almost double in the grey market to around Rs 1,150 apiece for an estimated Rs 80,000 crore valuation. It has come off those highs amid growing concerns over asset quality, exacerbated during the pandemic, and is currently hovering at Rs 875 per share for a Rs 70,000 crore valuation, down from Rs 970 levels in March. Secondary market experts feel that in anticipation of a stake sale, the buying activity on the stock has risen significantly.

In a recent analyst call after the June quarter results, HDFC Bank CFO Srinivasan Vaidyanathan had said several international and domestic investors had shown interest in the growth plans of the unit and added that the bank may test the market in terms of price discovery. At its recent annual general meeting in August, managing director Sashidhar Jagdishan had said that an outside investor could be brought for price discovery.

HDB Financial’s loan book of Rs 57,390 crore as of June 30 was at about 5% of HDFC Bank’s total advances of Rs 11.47 lakh crore. The lender owns 95.3% of HDB Financial with employee trusts and a few current and former bank officials owning the rest. ET had reported in December 2019 that Puri’s family investment vehicles had netted Rs 200 crore after partially liquidating his investments. In the shadow bank cohort, its cost of funds is among the lowest. The franchise has a nationwide footprint with 1,319 branches in 959 cities. HDB has three primary business lines – enterprise lending to small and medium businesses; asset financing of commercial vehicles and electronics; and short tenor consumer loans.

Most banks have had step-down NBFC subsidiaries to service a wider pool of customers with offerings that may otherwise be difficult to fit the risk profile of a bank. But with the Reserve Bank of India continuing to push banks toward capital preservation, most bank-backed NBFCs such as PNB Housing Finance have had to seek external investors for liquidity and growth support. In January, the RBI had proposed a scale-based regulatory framework for shadow banks to segregate larger entities and expose them to a stricter set of “bank-like” rules. This is aimed at protecting financial stability while ensuring that smaller NBFCs continue to enjoy light-touch regulations and grow with ease.

“This is a pedigreed franchise with a strong parentage and a robust presence in the retail finance segment. Post the Fullerton buyout, several global franchises are keen to explore investment opportunities,” said the head of a large financial institution aware of the process, on condition of anonymity. “The final guidelines of NBFC investments is also expected shortly which will further clear the regulatory air.”

Covid blues
The second Covid-19 wave had worsened asset-quality metrics, with HDB Financial Services reporting threefold increase in gross bad loans in a year. HDB had posted a gross non-performing asset (GNPA) ratio of 7.75% as on June 30, against 2.86% in the same period a year earlier. Bad loans doubled in just one quarter, a sequential comparison of numbers showed. The GNPA ratio was at 3.89% on March 31. Over the past 10-year period, the average GNPA ratio has been 1.55% and return on equity has been 13.4%.

Net profit dropped 44% to Rs 130.6 crore at the end of the June quarter, from Rs 232.7 crore a year ago. However, analysts see 19.8% capital adequacy in FY21, despite lower net profit and higher provisioning, as a positive.

Apart from the recognised bad debt, HDB Financial had restructured loans worth Rs 5,321 crore at FY21-end, according to the company’s annual report.

“Valuations may have come off the peak but are still high at a time when that of listed non-bank lenders are near their yearly lows, reflecting the premium the HDFC Group commands in an industry otherwise struggling to generate sufficient liquidity,” another investment banker told ET. “Investors are optimistic about the NBFC’s growth as it has access to cheap sources of funds through its parent and generates high margins.”

In FY21, HDB Financial sold loans worth Rs 473 crore under securitisation, with its parent buying to the tune of Rs 379 crore, according to the latest annual report. The NBFC is required to report any related-party transactions with its parent. At its last AGM held on June 25, the company got shareholder approval to conduct securitisation transactions worth Rs 7,500 crore with HDFC Bank in the current year.



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Bank, NBFCs report spurt in Q2 advances as lending recovery picks up, BFSI News, ET BFSI

Banking & Finance

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Most banks and non-banking finance companies reported a jump in disbursal of advances in the quarter ended September in a sign that credit uptake is rising.

HDFC Bank saw its advances book grow by around 15.4% year on year at the end of the September quarter, proforma numbers released by the private sector lender showed. Its total loans aggregated to Rs 11.98 lakh crore at the end of September, up 4.4% sequentially. Its total loans were at Rs 10.38 lakh crore at the end of September 2020.

As per the bank’s internal business classification, retail loans during the September quarter grew by around 13% year on year and 5.5% over June quarter. Commercial and rural banking loans grew by around 27.5% y-o-y while other wholesale loans grew by around 6%.

Mortgage lender HDFC assigned loans amounting to Rs 7,132 crore at the end of the September quarter versus Rs 3,026 crore a year earlier. It sold loans

worth Rs 27,199 crore in the preceding 12 months versus Rs 14,138 crore in the previous year, regulatory filings show.

Private sector lender

IndusInd Bank

IndusInd Bank reported better-than-expected credit growth of 10% with total loans at Rs 2.2 lakh crore at the end of the September quarter, preliminary numbers filed with stock exchanges showed.

IDFC First Bank posted 9.75% growth in advances at Rs 1,17,243 crore for the second quarter ended September.

Private lender Yes Bank posted a 3.6% rise in its advances to Rs 1.72 lakh crore, though retail disbursements grew at a faster rate and grew by 126.6% over last

year to Rs 8531 crore at the end of the September quarter as against Rs 3764 crore a year ago.

NBFCs

Leading non-bank lender Bajaj Finance reported it had booked 6.3 million new loans at the end of the September quarter versus 3.6 million a year ago. It’s

assets under management (AUM) stood at Rs 1.66 lakh crore for the quarter under review as against Rs 1.37 lakh crore a year earlier.

Non-bank lender Mahindra & Mahindra Financial Services posted a 60% year-on-year growth in disbursements at Rs 6,450 crore at the end of the September

quarter. With further improvement in mobility during September, the collection efficiency for the NBFC was reported at 100% for September 2021.

Subject to improvement in auto supply chain, the company is hopeful of a good Q3 FY22 ahead, supported by festival season and harvest cash flow.” M&M Finance said.

AU Small Finance Bank

AU Small Finance Bank Ltd’s total deposits were up 45% on year at Rs 39,030 crore as of September 30, according to provisional data from the bank. Gross advances rose 32% on year to Rs 36,405 crore. Of the total gross advances, the small finance bank restructured 800 accounts worth Rs 800 crore in July-September. Disbursements rose 57% on year and 171% on quarter to Rs 5135 crore. It also made disbursements worth 530 mln rupees under the Reserve Bank of India’s targeted long-term repo operations.

RBL Bank’s total deposits rose 17% on year as of Sep 30, according to provisional data from the bank. Deposits stood at 755.9 bln rupees, up 1% on quarter. The bank’s gross advances rose 1% on year to Rs 58,046 crore as on September 30. Of the gross advances, 55% comprised retail advances while the remaining 45% is in the wholesale category.



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