Wednesday, March 11
RBI's proposed tightening of rules to curb mis-selling of products, such as mutual funds or loan-linked insurance, by banks could slow the expansion of credit life insurance, a fast-growing segment tied closely to retail lending, experts said. This insurance segment, although nascent, already garners about ₹30,000 crore in premiums."The biggest impact will likely be on group credit life policies sold alongside retail loans," a senior insurance executive said. "That's where distribution practices will need to change."The draft guidelines prohibit banks from making the purchase of third-party products, including insurance, a prerequisite for sanctioning loans. RBI said banks "shall not bundle the sale of any third-party product or service with any of its own."The move targets concerns that
Kolkata: Capital Small Finance Bank plans to step on the gas on business expansion, executive director Munish Jain told ET in an interview.After growing 20% year-on-year in 2025, the Jalandhar-based lender has set a target of 23-24% growth for the next couple of years, which would help it to double down business to Rs 16,000 crore by 2029. At present, it has a portfolio of Rs 8,164 crore, with agriculture and MSME loans together contributing 53% of it."Next year onwards, we are giving a guidance that we want to double down by 2029, which translates into 23 to 24% growth," Jain said. "We are sticking to our target of Rs 16,000 crore by March 2029."Capital SFB has a 99% secured portfolio."We will continue to be a secured franchise in which MSME lending is leading the pack. MSME will continue
