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Tata Capital says revolving credit impact seen at 3-4% of AUM; alternate products being tested

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Tata Capital says revolving credit impact seen at 3-4% of AUM; alternate products being tested

Tata Capital says revolving credit impact seen at 3-4% of AUM; alternate products being tested

Tata Capital expects the impact of the Reserve Bank of India’s proposed curbs on revolving credit to be limited, with the NBFC estimating a 3-4% impact on its AUM, while it continues to engage with the regulator and evaluate alternate products. The non bank lender is looking at retail insurance products, higher NIM-plus-fee income and cost efficiencies to mitigate any potential hit to fee income from the proposed IRDAI distribution norms, MD & CEO Rajiv Sabharwal said.

Tata Capital Managing Director and CEO Rajiv Sabharwal said the lender is continuing to engage with the Reserve Bank of India on the proposed norms governing revolving credit , while evaluating alternative products that can meet customer requirements if the regulations are implemented in their current form. “We continue to engage with the regulator on this,” Sabharwal said during its Q2 FY27 earnings call. He said the RBI has also been seeking feedback on the nature of products and markets being served, adding that Tata Capital has brought in or is evaluating alternative products to address any potential impact. Advt

The NBFC ’s assessment of the draft framework suggests that the impact could be around 3–4% of its AUM, depending on how the final regulations are framed. “We had done an evaluation to look at what would be the impact in case the guidelines come as they are and what we will not be able to convert into a standard loan.


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