RBL Bank has unveiled an ambitious strategy to increase its retail secured loans portfolio, targeting underserved customer segments in smaller cities across India. The bank plans to raise the share of retail secured loans to 60% of its total retail portfolio, up from the current 54.65%.

Expansion into Collateral-Backed Products

RBL Bank is set to broaden its product offerings, focusing on several collateral-backed products:

• Micro loans against property
• Self-employed mortgage loans
• Affordable housing loans
• Vehicle finance
• Gold loans
• MSME business banking

This diversification aims to cater to a wide range of customer needs while maintaining a secured lending approach.

Focus on Tier-3 and Tier-4 Cities

The bank's strategy centers on tapping into underserved customer segments in Tier-3 and Tier-4 cities, areas where larger private banks have not been as aggressive. This approach allows RBL Bank to carve out a niche in markets with significant growth potential.

Loan Offerings and Growth Targets

RBL Bank has outlined specific ranges for its loan products:

The bank is aiming for a 20% year-on-year growth, outpacing the industry's projected growth rate of 13-15%.

Leveraging Existing Network

To drive this expansion, RBL Bank will utilize its extensive network of 550 branches and a robust 1,500-strong business correspondent network. This infrastructure will be crucial in reaching and serving customers in smaller cities and towns.

Current Financial Position

As of June, RBL Bank's financial position shows:

This new strategy marks a significant shift towards secured lending, potentially reducing the bank's risk profile while targeting growth in underserved markets. By focusing on collateral-backed products and expanding into Tier-3 and Tier-4 cities, RBL Bank aims to strengthen its position in the retail banking sector and drive sustainable growth.

RBL Bank has announced a strategic partnership with CAMSPay, the payments unit of Computer Age Management Services (CAMS), to launch a cutting-edge digital payments platform. This collaboration aims to enhance payment processing capabilities for merchants through their combined service offerings.

Key Highlights of the Partnership

• RBL Bank will serve as the Merchant Acquiring Settlement Service Partner for CAMSPay's new payment gateway.
• The partnership focuses on providing real-time settlements and secure card processing for businesses across various sectors.
• The new platform is designed to meet the evolving needs of Indian enterprises in the digital payments landscape.

Innovative Features

CAMSPay's New Payment Gateway offers several advanced features:

• Seamless acquiring settlement services
• Real-time analytics and reconciliation
• Open APIs for efficient settlement processes
• Scalable and regulation-ready solution

Executive Insights

R Subramaniakumar, MD & CEO of RBL Bank, commented on the partnership: "At RBL Bank, we are continually enhancing our service proposition to payment aggregators by investing in cutting-edge technology and seamless operational processes to create value for our clientele. We are delighted to partner with CAMSPay on this marquee initiative of launching a future-ready payment gateway that aligns with India's growing digital economy."

Vasanth Jeyapaul, CEO of CAMSPay, added: "With the CAMSPay's New Payment Gateway, our goal is to empower businesses to overcome everyday payment challenges by providing a stable, secure, and flexible platform. This is not just another gateway – it is a strategic platform built to meet regulatory requirements while delivering real-time capabilities."

Implications for the Digital Payments Ecosystem

This partnership between RBL Bank and CAMSPay is poised to make a significant impact on India's digital payments landscape. By combining RBL Bank's robust banking infrastructure with CAMSPay's innovative payment technology, the new platform is expected to offer enhanced security, scalability, and efficiency for businesses navigating the digital economy.

The collaboration comes at a time when digital payments in India are experiencing rapid growth, driven by government initiatives and changing consumer preferences. This new offering is likely to contribute to the ongoing digital transformation of financial services in the country.

As the digital payments ecosystem continues to evolve, partnerships like this between established banks and fintech innovators are expected to play a crucial role in shaping the future of financial transactions in India.