CSB Bank has significantly shifted its strategy by reducing its gold loan disbursement due to geopolitical risks and volatile gold prices. The bank aims to maintain a Loan-to-Value (LTV) ratio of 60-65% for its remaining gold loans.
Key developments:
- CSB Bank has cut its gold loan disbursement by 50%, equating to a reduction of ₹1,700 crore.
- The bank is now focusing on Wholesale and SME lending, which are considered lower risk.
- NALCO plans to invest ₹30,000 crore in a major expansion project over the next 3 to 4 years.
- NALCO’s Q4FY26 EBITDA decreased by 4% due to a decline in alumina sales and prices.
The Indian government has approved the Emergency Credit Line Guarantee Scheme (ECLGS 5.0) to support MSMEs and the aviation sector. This scheme provides a 100% guarantee for MSMEs and 90% for non-MSMEs, including airlines.
The repayment period for loans under ECLGS 5.0 is 5 years, with a 1-year moratorium. This initiative aims to assist businesses facing liquidity stress amid ongoing geopolitical challenges.
