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After corporate debt, retail loans face stress amid unemployment, slowdown

The govt has unveiled steps ranging from concessions on vehicle purchases to hastening of capital infusion in state-run banks to help re-ignite an economy that's slowed sharply due to weak consumption

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Illustration: Binay Sinha

Ameya Karve and Divya Patil | Bloomberg
Credit analysts are keeping a watchful eye on signs of stress in Indian household debt after unemployment rose to a 45-year high and as lenders grapple with the worst soured debt levels of any major economy.

India’s bad debt malaise has centered on corporate debt, and loans to individuals have been seen as safer and a growth opportunity for banks. Given the slowdown in the economy and a drying-up of credit from shadow banks, analysts are signaling potential risks, though publicly available data on personal loan arrears is sparse.

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First Published: Aug 29 2019 | 8:21 AM IST

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