HDFC Bank, Bajaj Fin and SBI Cards Q2 nos show rankling retail loan stress

Analysts at Credit Suisse expect retail loan delinquencies at 5-10 per cent for private banks and 9 - 12 per cent for NBFCs

That stress is building up in retail loans became evident around the same time last year with slowing economic activities. The pandemic and ensuing lockdown may have made the retail stress more pronounced, taking cues from September quarter (Q2) results of India’s largest retail lenders across segments, namely, HDFC Bank, Bajaj Finance and SBI Cards.

In the case of HDFC Bank for instance, at 5.3 per cent year-on-year in Q2, retail growth was at a decadal low and so was share of retail loans at 46.7 per cent. Save for personal loans and credit cards, retail growth would further disappoint