The Reserve Bank of India’s tightening of norms in unsecured lending will moderate growth in that segment, State Bank of India chairman Dinesh Kumar Khara said on Wednesday.

Khara said the higher risk weights will have a 0.02-0.03% impact on its net interest margins in the December quarter, but a better picture will emerge in the next quarter.

"Whatever we were doing, we will continue to do, but there will be a moderation," Khara told reporters on the sidelines of a FIBAC event.

Earlier this month, the RBI increased risk weights on unsecured lending for banks as well as non-banking financial companies (NBFCs).

Since the RBI has asked lenders to allocate more funds against such risky loans, personal loans and credit card borrowings is set to become dearer.

Khara said interest rates on such loans will go up as the cost of funds for banks rise because of the new norms.

About any possible change in risk perceptions, Khara said there will not be any change from a diligence perspective and that its norms were already "robust".

Khara said the bank's gross non-performing assets (NPAs) from unsecured loans portfolio stands at 0.70%.