As the growth of bank loans to industry slowed down dramatically in the last six years, retail loans have driven overall loan growth.
The good part is that bad loans in retail lending are very low. Will that remain the case in the months ahead? Mint takes a look What has driven the growth in retail loans? Between 2008-09 and 2014-15, banks ran up a huge amount of bad loans in their industrial lending.
A bad loan is a loan that hasn’t been repaid for 90 days or more. This led the shift towards retail loans, which include housing loans, vehicle loans, personal loans, credit card outstanding and loans to finance consumer durables.