Pace of retail loan growth double of total advances, says RBI report

Share of unsecured retail loans increased from 22.9% to 25.2%, shows data

With banks focusing more on retail loans these past few years, such loans have grown at a faster pace than the overall loan growth between March 2021 and March 2023, observed the Reserve Bank of India’s latest edition of the Financial Stability Report released on Wednesday.

Retail loans grew at a compound annual growth rate (CAGR) of 24.8 per cent from March 2021 to March 2023, nearly double the CAGR of 13.8 per cent for gross advances during the same period.