RBL Bank Set To Launch Financing Options For Commercial Vehicles

RBL Bank plans to grow by lending more to retail customers. It aims to raise its interest margin by focusing on high-yield retail loans. In the next three months, the bank will start commercial vehicle finance.

New lending focus

The bank wants more retail assets in its loan book. Kumar Ashish, Head of Retail at RBL, said, "We would have to gain market share in order to grow." He pointed to retail lending as the bank’s main driver for expansion.

CV loans are coming soon

RBL will offer loans for commercial vehicles and used cars. These loans will go mostly to small borrowers in tier-2 and tier-3 towns. The bank will use its tractor loan team to push these products in rural areas. RBL wants to make the process fast and smooth. This approach helps improve user experience and loan conversions.

Read More: Private Vehicles Get FASTag Relief at Rs 3,000 Annually. Will CVs Be Next?

Using existing teams

To manage this new lending, RBL will use existing branch staff. The bank has over 550 branches and 1,500 business points. These teams will now also sell retail credit. By relying on current staff and digital loan tools, RBL will control costs while growing its reach.

MFI stress, but recovery is ahead

In the last quarter, microfinance loans caused some pain. But the bank says collections are improving, especially since April. States like Tamil Nadu and Karnataka still show some stress, but RBL expects a better second half of the year.

Summary

• The CV and used car loans are expected to come in over the next 3 months.
  
• Focus on small towns and underserved borrowers.
  
• Retail loans to drive margin growth
  
• Utilize digital tools and existing staff to maintain low costs.
  
• MFI business shows early signs of recovery.
  

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