Banks turning their back on India Inc, focusing on lucrative retail lending

Slowing economy and higher tier-I capital requirement shifting focus to retail lending

Banks continue to shy away from giving loans to the corporate sector, and have confined themselves to retail banking, which has shown more resilience and is equally lucrative if not more. 

The fear of bad loans and stress in the corporate sector has dampened big-ticket lending. Most banks have shown a lower share of corporate loans on their books; and they now prefer to cherry-pick companies rather than bet on a sector or a group. Banks have diversified their risks when it comes to lending to their top 20 borrowers. 

The Reserve Bank of India (RBI) has issued a circular