Retail Loan

Piramal Capital & Housing Finance expects to grow its retail loan book to more than Rs 1 lakh crore over the next three years from around Rs 25,000 crore now

Why is demand for private credit on the rise?

The festival month saw 18.3% growth in non-food credit offtake. Retail loans -- driven by robust housing and vehicle loans demand -- saw a 20% jump. What explains this surge in personal loans?

A recovering economy may lead to higher credit demand from corporates, despite rising rates and there are signs that retail consumption is picking up

Of the Rs 35 trillion of retaill loans deployed by banks, just Rs 84,375 crore or 2.4 per cent went towards education loans

Broadly the trend we have seen is that retail is growing faster than corporate loans, said Chadha

According to the NACH data, of the 86.4-million transactions initiated in July, 33.23 per cent, or 28.7 million transactions, failed, while 57.7 million were successful.

Retail loan growth at 9.1 per cent for February 12 fortnight is the weakest so far; Nifty Bank index is up 60 per cent in six months

Banks had grown their retail books in a big way in recent times given the lacklustre demand for corporate credit

While headline numbers met estimates, quality of loan growth and asset quality didn't. This explains the 1.8% dip in its stock price on Monday

Loans to MSMEs are also likely to double to Rs 13.2 trillion from Rs 6.6 trillion in FY19

According to the Reserve Bank of India rules, banks can choose between repo, treasury rates, or any benchmark set by Financial Benchmark India Private Ltd for the rate setting purpose

Also, link pricing credit to Medium units to the repo rate

Those who have loans running should set up a contingency fund

Overall bank credit has grown at a sluggish pace in the past two years at below 10 per cent. The only silver lining has been the double-digit growth in consumption loans.Private banks have been leading the race, with most lenders reporting retail growth well above 15 per cent. With a 20 per cent rise in pay for central government employees, demand for retail loans should go up further."This year we will see even better retail growth as with the revision in salaries because of the Seventh Pay Commission, it is estimated that about Rs 1 lakh crore more will be available. Also, we have the festive season, when demand picks up anyway. So, it is possible that retail credit growth can be anywhere between 18-22 per cent for the industry," said Ashutosh Khajuria, executive director, Federal Bank.Rating agency ICRA expects annual retail credit growth to improve to about 20-21 per cent in financial year 2016-17 (FY17), as against a 17.2 per cent compound annual growth rate over the past five yea