Now Reading: Retail lending slows as corporate loans pick up in Q1
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Retail lending slows as corporate loans pick up in Q1
Retail loans at most large banks grew 7-12% year-on-year in the June quarter, with State Bank of India the outlier at 15%. Corporate loan growth outpaced retail, ranging 10-18%, with Axis Bank…
The Story in Brief
Retail loans at most large banks grew 7-12% year-on-year in the June quarter, with State Bank of India the outlier at 15%. Corporate loan growth outpaced retail, ranging 10-18%, with Axis Bank reporting 38% growth. Banks attribute the corporate surge to demand from renewables, power and data centres.
Some lenders saw slowdown in unsecured retail loans and vehicle/housing loans, but gold loans boomed at nearly 100% year-on-year. RBI data showed bank credit to industry rose 19.2% in June 2026, while retail loans grew 11.7%. Banks expect retail disbursements to pick up in coming quarters.
The Indian Opinion
The retail slowdown is often painted as a sign of weak consumption, but it partly reflects normalisation after a period of high unsecured lending. The corporate lending surge, meanwhile, is being cheered as a capex revival, yet one-off factors like geopolitical inventory buffers may be inflating the numbers. The real test will be whether retail disbursements, which some banks say are improving, actually translate into book growth over the next two quarters.
Source: livemint.com
This story was synthesised by AI from the source linked above.
