Are banks abandoning caution in chasing retail loans?
Perhaps, lenders need to look back to 2008, when credit card defaults had risen sharply, to understand that all retail lending is not secure
The share of unsecured retail loans, including credit cards, to Indian banks’ total retail book is at 28%, its highest level since Reserve Bank of India (RBI) began releasing disaggregated credit data in 2007. This should send off warning signals to banks and it has begun to do so, at least to the RBI. The central bank’s deputy governor S.S. Mundra recently noted that banks should not be pursuing the retail borrower at all costs.