State Bank of India (SBI) reported a 15.7% year-on-year growth in its retail loan portfolio during the second quarter, in line with other banks. SBI’s home, auto, personal, and gold loan portfolios also saw substantial growth. The bank’s domestic corporate loan portfolio increased moderately by 6.62%. SBI holds a 27.4% market share in home loans and 19.3% in auto loans. The Reserve Bank of India (RBI) has expressed concern about the rapid growth in retail loans, particularly unsecured loans like personal and credit card loans. While SBI’s retail portfolio has low non-performing assets (NPAs), the RBI is closely monitoring such loans for signs of potential stress. Other public sector banks, like Bank of Baroda and Bank of India, have also witnessed similar growth in their retail loan portfolios. Overall, the retail credit growth remains healthy, with few pockets showing signs of risk build-up, according to the TransUnion CIBIL Credit Market Indicator (CMI) report.
SBI and Other Banks Witness Surge in Retail Loans, Prompting RBI’s Watchful Eye
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