Banks See Sharp Growth in Unsecured Loans Despite RBI Caution

- Advertisement -

Leading banks like HDFC Bank, ICICI Bank, and Kotak Mahindra Bank significantly expanded their unsecured loan portfolios during the July-September quarter, as revealed by a Moneycontrol analysis of their financial reports. These banks anticipate continued growth in the unsecured loan segment, encompassing microfinance, credit cards, personal loans, and select retail loans, according to statements from bank officials.

This growth occurs amid concerns expressed by the Reserve Bank of India about the surge in unsecured loans and the need for enhanced monitoring mechanisms.

HDFC Bank, India’s largest private sector lender, reported a 15.5 percent increase in its personal loans, rising from Rs 1.54 lakh crore in the corresponding quarter the previous year to Rs 1.78 lakh crore.

- Advertisement -

ICICI Bank’s personal loan portfolio witnessed remarkable growth of 40 percent, reaching Rs 1.04 lakh crore from Rs 74,355 crore. Their credit card portfolio also surged to Rs 43,230 crore during the July-September quarter, representing a 29.5 percent growth compared to the previous year.

Kotak Mahindra Bank’s unsecured loan portfolio expanded to Rs 38,311 crore during the July-September quarter, up from Rs 25,580 crore a year earlier, marking a substantial 49.76 percent increase.

IndusInd Bank observed a 16 percent growth in its microfinance portfolio, reaching Rs 34,363 crore in Q2 of FY24, up from Rs 29,617 crore the previous year. The bank’s credit card business experienced a 33 percent increase, reaching Rs 9,462 crore, and other retail loans surged by 64 percent to Rs 20,879 crore.

- Advertisement -

RBL Bank’s retail portfolio, inclusive of credit cards and microfinance, stood at Rs 44,092 crore, compared to Rs 36,686 crore the previous year, reflecting a 35 percent increase.

Reserve Bank of India (RBI) Governor Shaktikanta Das has raised concerns about the rapid growth of unsecured lending by banks and recommended that they strengthen their internal surveillance mechanisms to mitigate potential risks.

HDFC Bank’s Chief Financial Officer, Srinivasan Vaidyanathan, expressed the bank’s intention to increase its portfolio by 15 to 20 percent in the upcoming quarters, citing a strong demand and a 15 percent year-on-year growth rate.

- Advertisement -

ICICI Bank’s Chief Financial Officer, Anindya Banerjee, emphasized the bank’s focus on existing customers and cross-selling opportunities, particularly to customers with a favorable credit score.

Kotak Bank’s CFO, Jaimin Bhatt, affirmed the bank’s comfort with expanding its unsecured portfolio and targeting growth in the mid-teens.

IndusInd Bank’s Managing Director, Sumant Kathpalia, outlined their strategy to limit their credit card business and concentrate on other unsecured business exposure, aiming for a 5 percent share.

RBL Bank’s Managing Director, R Subramaniakumar, assured that there is no stress in their retail, microfinance, and credit card business, emphasizing their commitment to aggressive growth in these areas.

- Advertisement -

Share this article...



Please enter your comment!
Please enter your name here

More News...


Gold was so cheap in year 2000, Check Last 25 years Gold Rate

You will be surprised to know the Gold Rate in 2000, Check Last 25 years Gold Rate

Income Tax Department Recovers Rs.40 Crore Cash During Raids on Shoe Traders in Agra

Income Tax Department Recovers Rs. 40 Crore in Cash During Raids on Shoe Traders in Agra

Russian Court Orders Seizure of Deutsche Bank’s Assets, But Why?

Russian Court Orders Seizure of Deutsche Bank's Assets in Lawsuit Over Gas Processing Plant Construction Project

Man in UP received Rs 9,900 Crore in his Bank Account, Bank froze his account

Bank Account Software Glitch Leads to a Shocking Rs 9,900 Crore Balance in Uttar Pradesh Man's Account

Consumer Forum directs SBI to compensate customer for card cloning fraud

Consumer Forum directs SBI to compensate customer for card cloning fraud

Baroda Gramin Bank Officers protest against Regional Manager

Baroda Gramin Bank Officers protest against Regional Manager

PNB Bank Manager’s Wife commits suicide, Family says she was forced for Dowry

PNB Bank Manager's Wife commits suicide, Family says she was forced for Dowry

J&K High Court says Excess Salary paid to employee can’t be recovered after retirement

Jammu and Kashmir High Court Rules Against Recovery of Excess Payments to Retired Employee

Madras High Court: Employees Cannot Be Denied Pensionary Benefits Due To Administrative Delays

Landmark Ruling by Madras High Court: Administrative Delays Cannot Deprive Employees of Pensionary Benefits

Latest News