Demand for retail loans in India has staged a rebound, but growth remains muted as lenders await clarity on asset quality following the widespread upheaval caused by the pandemic. Bankers, however, hope that retail loan demand will accelerate if the economy stays on the recovery path, and interest rates remain low because of surplus liquidity.
We expect retail credit growth to be stronger in the (fiscal) fourth quarter compared to the first three quarters. Under retail, affordable housing loan is expected to do well. Markets like Ahmedabad and Mumbai have opened up. Micro, small and medium enterprises also could see good traction. We are also looking at new products under education loans, said Padmaja Chunduru, managing director and chief executive of state-run Indian Bank.
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