Retail loans roll on for banks, but risks loom – Mint
Retail loans, or loans to individual borrowers, first overtook industrial loans in November 2020, and have since opened their lead—from 1% in December 2020 to 15% in October 2022. Of the four main borrowing sectors, individuals are now the largest for Indian banks. The past year has seen a revival in bank lending. While all four sectors registered a healthy increase in loans, the standouts were services (growth of 22% in the 12-month period to October 2022) and personal loans (20%).
Within personal loans, all nine segments for which the RBI releases data have grown more than 10% in the past year. There are two discernible patterns. One, there is consumer offtake of discretionary items, as evidenced by the growth in housing, vehicle and consumer durable loans. Two, individual borrowers are resorting to greater leverage. They are borrowing more against assets like gold, shares and fixed deposits, some of which could be to tide over difficult times. They are also deferring more…
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source: https://news.oneseocompany.com/2023/01/02/retail-loans-roll-on-for-banks-but-risks-loom-mint_2023010238657.html
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