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No plan to pass interest rate hike to MFI customers: Suryoday SFB's Babu

R Baskar Babu, managing director & chief executive officer of Suryoday Small Finance Bank, tells Manojit Saha in an interview that the regulator wants these lenders to rebalance the portfolio

R Baskar Babu, Managing Director & CEO, Suryoday Small Finance Bank
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R Baskar Babu, Managing Director & CEO, Suryoday Small Finance Bank

Manojit Saha
The Reserve Bank of India (RBI) recently flagged high growth of small finance banks (SFBs) that could impact their asset quality. R Baskar Babu, managing director & chief executive officer of Suryoday Small Finance Bank, tells Manojit Saha in an interview that the regulator wants these lenders to rebalance the portfolio to moderate growth risks. Edited excerpts:
 
The RBI in its June Financial Stability Report observed that the high balance sheet growth of SFBs from a low base raised some concerns on asset quality. Do you think SFBs are going at a bit of a fast pace and