Indian banks are witnessing a substantial surge in retail credit, with HDFC Bank leading the way with a 112.1% growth in its domestic retail loan portfolio in the latest quarter. Other banks, including ICICI Bank and Axis Bank, also reported notable increases in retail loans. Despite the Reserve Bank of India’s (RBI) concerns about high growth in unsecured personal loans, banks remain optimistic about the momentum in retail credit. The government sees this as a sign of household confidence. However, experts caution against over-enthusiasm, emphasizing the need for prudential measures to avoid potential risks associated with increasing household debt levels.