Thursday, Dec 09, 2021
Outlook.com
economy: retail credit

Lone Sharks

Banks are finding it hard to lend. Don't people want the goodies?

Lone Sharks
Tribhuvan Tiwari
Lone Sharks
outlookindia.com
-0001-11-30T00:00:00+05:53

The reason: retail loans, which were a big contributor to the frenzied consumerism of the past few years, are falling out of favour with buyers. Obviously, this has affected growth in retail credit for the banking sector. Most banks are either publicly predicting a slowdown, or privately praying that something happens to refuel the buying mania. Across sectors like housing, automobiles and consumer goods, marketers are hoping that the coming festive season will provide some reprieve.

First, check out the latest statistics. In April this year, the banking sector's non-food credit (which largely comprises retail loans, and borrowings by industry and trade) fell by nearly 1.5 per cent compared to the figure in the previous month. Recently, ICICI Bank admitted that its growth in retail credit has fallen from 35-40 per cent to 20-25 per cent this year. And if this is the case with what's perhaps the most aggressive bank in the retail segment, one can easily guess the scenario in the rest of the industry.

Outlook Newsletters

Read More from Outlook

AFSPA: When SC Probe Panel Found Six Encounters In Manipur To Be Fake

AFSPA: When SC Probe Panel Found Six Encounters In Manipur To Be Fake

AFSPA is in force in Nagaland, Assam and parts of Manipur and Arunachal Pradesh in the northeast. A similar law exists in Jammu and Kashmir.

CDS General Bipin Rawat - A Saga Of Valour And Excellence

CDS General Bipin Rawat - A Saga Of Valour And Excellence

General Bipin Laxman Singh Rawat held the status of a four star general of the Indian Army. He took over as the 27th Chief of Army Staff (COAS) on December 17, 2016.

Ashes, 1st Test, Day 2 LIVE: Leach Breaks 156-run Stand

Ashes, 1st Test, Day 2 LIVE: Leach Breaks 156-run Stand

Get here live cricket scores of day 2 of the first Ashes Test in Brisbane. Pat Cummins has given Australia a head start with a five-wicket haul on Day 1.

IAF’s Mi-17V5: All About The Helicopter That Crashed Carrying India's First CDS Bipin Rawat

IAF’s Mi-17V5: All About The Helicopter That Crashed Carrying India's First CDS Bipin Rawat

IAF’s Mi-17V5 helicopter is one of the most advanced military aircrafts equipped with advanced technology to help it to traverse adverse climatic and war situations.