Sidharth Rath resigns as SBM India head before term ends
₹2,046.2 crore. Deposits crossed ₹7,000 crore, while its loan book was at ₹4,835.93 crore.
Its net non-performing asset, which was at 9% before his tenure, fell to below 1%. However, SBM India faced challenges after RBI in August 2022 took action against all the non-bank prepaid instruments or wallet licence holders.
RBI’s directive prohibited loading PPIs with credit lines, impacting SBM’s six-million buy now pay later (BNPL) customers and fintech companies like Slice, Uni, and Lazypay, which offered credit services on SBM’s prepaid cards. To make matters worse, RBI directed the bank in January to stop all international transactions under Liberalised Remittance Scheme due to supervisory concern.
The ban affected around one million corporate credit card customers of SBM as well as its partnerships with fintech companies like Niyo. While, RBI partially eased the restrictions by allowing it to carry out ATM and poin-of-sale transactions under LRS, it asked SBM to ensure all customers were KYC-compliant.
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