CSB Bank aims to maintain a Loan-to-Value (LTV) ratio of 60-65% for its remaining gold loans. This strategic shift comes as the bank redirects its focus toward Wholesale and SME lending, which are perceived as lower risk.

Meanwhile, NALCO announced plans to invest ₹30,000 crore in a major expansion project over the next 3 to 4 years. However, the company’s Q4FY26 EBITDA decreased by 4% due to declining alumina sales and prices.

The Indian government has approved a ₹2.55 lakh crore credit guarantee scheme known as ECLGS 5.0. This scheme aims to support MSMEs and the aviation sector amid ongoing economic pressures.

ECLGS 5.0 offers:

• 100% guarantee for MSMEs
• 90% guarantee for non-MSMEs, including airlines
• A repayment period of 5 years with a 1-year moratorium

This sequence of events underscores how CSB Bank is adapting to current market conditions. The shift from gold loans to SME lending reflects an urgent response to external economic pressures.

As the landscape continues to evolve, stakeholders will be watching closely how these changes impact both CSB Bank’s financial health and NALCO’s expansion efforts.

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