For the past two quarters, banks have been focusing on retails loans segment due to the sluggish demand in corporate loans segment.  

The two public sector banks which recently announced their business results for the quarter ending September, Axis bank and HDFC bank, have reported at least 30 percent growth in retail loans segment. Analysts say that the increase in retail advances this fiscal is not likely to hike banks non-performing assets, as most of the loans are collateralized loans.

Collateralized assets are those loans which are provided for a security. For example, Axis Bank has shown a strong growth in important retail loan products like auto loans. On the matter, Mohan Jayaram, the Managing Director of Experian Credit Information Company of India said that banks have a quality loans book.     

However, many inflation analysts feel that the rising inflation could have an adverse impact on the market for retail loans.