"Only 3-4 % Of Our AUM To Be Impacted Due To RBI's Revolving Credit Curbs" Says Tata Capital CEO
In August, the RBI proposed barring NBFCs from offering revolving credit products, unless they are authorised to issue credit cards.
Mumbai: The Reserve Bank of India’s proposed restrictions on Non-Banking Finance Companies from offering revolving credit facilities is unlikely to have a significant impact on Tata Capital, its managing director and chief executive officer Rajiv Sabharwal said during the Bank’s Q2FY27 earnings call.
“Revolving credit based on the interpretation has a number of products in it. We looked at this portfolio and when we did an evaluation to see what will be the impact incase the guidelines come as they are and what portion we will not be able to convert to a standard term loan, that impact was coming for us at 3-4 per cent of our Assets under management,” Sabharwal told reporters during Q2Fy27 earning call.
He said that the shadow lender continues to engage with the RBI besides also piloting alternate products.
In August, the RBI proposed barring NBFCs from offering revolving credit products, unless they are authorised to issue credit cards.
“We continue to engage with the RBI. An overdraft product is very beneficial to customers as it allows him to pay to the extent he borrows. We have looked at all products and some of the products such as supply chain product, loan against security are very old products and have been in existence for over 30 years in the industry….We do believe that the proposed regulations will not have a significant impact on our books over a period of time.”
Tata Capital reported a 51 per cent year-on-year (y-o-y) jump in second-quarter (Q2 FY27) consolidated net profit to ₹1,660 crore from ₹ 1,097 crore in the year ago period. The profit was supported by strong loan growth, stable asset quality and a healthy increase in net interest income. The net total income grew by 24 per cent YoY to ₹ 4,676 crore in Q2FY27 from ₹ 3,774 crore. The loan book crossed the ₹3 lakh crore milestone, with gross loan book at ₹ 3.03 lakh crore as on September 30, 2026.
