RBL aims to expand NIMs; credit cards, MFIs to outpace loan book growth

RBL Bank is targeting to expand its net interest margin (NIM) to over 5.2 per cent by the end of FY24 by upping the share of higher-yielding assets in its loan book, a top official has said.

The private sector lender will continue to maintain the share of unsecured loans like credit cards and microfinance by growing them at over the 20 per cent overall loan book increase targeted for every year till FY26, R Subramaniakumar told PTI.

The bank had reported an expansion in NIMs to over 5 per cent in the March quarter, in line with the industry trend.

"NIM will be 5.2-5.3 per cent by the end of the year (FY24). The mix of products will deliver the higher yield," he said.

Subramaniakumar said the bank is targeting to increase the share of secured retail assets like mortgage loans, loans against property, two and four-wheeler loans, which will yield higher.

He admitted that given its relatively smaller size, it has to offer higher deposit rates to get the required liabilities to fund th