Team Blitz India
NEW DELHI: The State Bank of India (SBI) expects an overall impact of 55 basis points due to the central bank’s new guidelines of increased credit risk weights on unsecured consumer loans, according to its Chairperson Dinesh Khara.
“The Reserve Bank of India’s recent guidelines have come in response to high growth in the unsecured loans segment. Among several guidelines, the circular mentioned that consumer loans for bankcalculations, the bank would require an additional capital allocation of 130 bps,” Khara told media.
“Even if we look at loans to (the) NBFCs, there will be another 25 bps that is expected,” he said.
“If we look at our half-year profit that we have earned till now, it would have added to our capital adequacy ratio by 109 basis points.” Khara added.