IDFC First Bank Limited

As per the new RBI circular, following are the points which is applicable to IDFCFB.

1. Consumer credit exposure will attract Risk Weight of 125% instead of 100 % now. This is not applicable to Housing loans, Educational Loans, Vehicle loans and Gold loans.
   2)Risk Weight to Credit Card receivables will have a risk weight of 150% instead of 125% now.
   Following is the chart of credit exposure of IDFCFB.
   

   Whether secured loans like mortgage loans , etc will be coming under purview of this circular will have to be seen.
   It is worthwhile to note that for consumer loans the Risk Weight was 125% and it was reduced to 100 % by RBI in 2019. Now again it is increased. I think it is just a check by the regulator to cool down the reckless lending by few lenders. If the lender has good under writing standards, I feel there is nothing to worry.