Retail loans set to become largest segment for Indian banking industry

Lenders depending on personal loans rather than industrial credit

Retail loans, including home and credit card debt, are expected to become the largest segment for the Indian banking industry, ahead of industrial credit and corporate loans, by the end of March this year.

In the first nine months of FY21, bank’s outstanding industrial credit was down 1.2 per cent year-on-year (YoY) to Rs 27.6 trillion (as of December 18, 2020). During the same period, outstanding personal loans were up 9.5 per cent YoY to Rs 26.6 trillion.

As a result, personal loans pipped service sector loans to become the second-largest category for Indian banks. Total outstanding bank credit to the service