The Indian banking industry is experiencing a revival in the retail lending segment with a 15 times rise in lending in 2010, say reports by RBI.

The reports read that loans extended by banks till November 19, 2010 amounted to Rs 67,569 crore as compared to Rs 3,950 crore for the same period in 2009.

With maximum borrowing taking place in the months of September to November, it is clearly evident that festivals have been a major driver in this loan surge. The lending in this period comprises 30% of the total lending for the entire 12 month period.

While private lenders like ICICI Bank and HDFC Bank already triggering the push in auto and home loan segment, public sector counterparts are also seen to be following up soon.

However, banks are more cautious this time regarding lending and are sticking more to secured form of loans.

A reduction in non performing assets (NPAs) as well as increased demand of education loans may be considered as two precursors to the revival of interest in the retail lending domain.