retail personal loans

SBI experienced a slowdown in loan growth due to corporate debt repayments via equity funding, particularly from PSUs like NTPC. Despite strong SME, agriculture, and retail loan growth, corporate loan prepayments impacted overall advances, which rose 12%. SBI anticipates corporate credit demand from infrastructure and renewable energy sectors, targeting 12% growth in that segment.

ICICI Bank announced a dividend of Rs 11 per share following a strong financial performance in the fourth quarter. The bank's net profit rose significantly, driven by increased lending and healthy net interest income. While margins may face pressure due to anticipated rate cuts, the bank plans to add 400 new branches.

Following the RBI's rate cut, SBI has reduced its lending rates by 25 basis points, effective April 15, 2025, to boost economic growth. The RLLR is now 8.25%, and EBLR is 8.65%. Deposit rates have also been trimmed.

Apple has overtaken Samsung in global smartphone market share for Q1 2025, while TCS has become the second-largest IT services company. Samsung launched its Galaxy M56 5G in India, and Infosys conducted another round of trainee layoffs.

India has a rich class, and two middle classes. Here’s why all three are buying ‘better’ than ever before

The RBI has eased restrictions on lending to non-bank finance companies and microfinance institutions by lowering risk weights for bank credit. This move aims to boost lending capacity and support economic growth, reversing the slowdown observed after previous regulatory measures.

Small-ticket personal loans, valued at less than Rs 50,000, have become the fastest-growing segment in retail lending. However, a study by TransUnion Cibil has shown that borrowers of these loans are more likely to default. The delinquency rate for consumers with small-ticket loans was 5.4%, compared to 4.2% in Q2 2022. Despite this, delinquencies in this portfolio have had a minimal impact on overall retail loan books. Lenders need to closely monitor these loans as consumers may prioritize other payment obligations over personal loan payments, indicating financial stress.

According to Icra, lending to the retail sector is not a major risk for banks' balance sheets, despite the segment growing faster than overall credit growth and the share of unsecured loans increasing within retail. The rating agency stated that credit growth remains strong and even at the expected pace for FY2024, incremental credit expansion would be the second highest ever.

Retail credit growth in India decelerated in Q2FY25, significantly impacting affordable housing and low-cost two-wheeler loans. However, higher-value loans experienced an uptick. Personal loan originations and credit card usage saw growth, while overall credit demand hit a two-year low with mixed delinquency trends.