Banks' FY19 retail loan growth slipped to 12%, slowest in 5 years: CRISIL

Adjusted for securitisation, loan book grows at 12% as against 16% in FY18

While private consumption decelerated to 4.1 per cent in the first half (H1FY20), the data suggests that retail lending of banks grew 16.6 per cent, which is twice the rate at which overall bank credit is growing. However, there’s catch.

According to CRISIL, a large chunk of the incremental retail loans disbursed by banks was used to buy retail loan portfolios of non-banking financial companies (NBFCs), which have been struggling for over a year to raise funds. 

Therefore, if we exclude loans disbursed to buy off pooled assets of NBFCs, the growth in retail lending of banks is actually slower