The Reserve Bank of India’s recent decision to increase risk weights on unsecured loans does not necessitate any capital raise by RBL Bank, MD & CEO R Subramaniakumar tells Manojit Saha in a video interview. Edited excerpts:
What is the impact of higher risk weight on RBL Bank’s unsecured loans?
Our bank had a total capital adequacy ratio of 17.07 per cent and Tier-I (entirely CET1) of 15.15 per cent as on September 30, 2023 (inclusive of profits for the half year).
The impact is about 65 basis points (bps) on the CET1 of the bank as on September 30,