Stress in agriculture, MSME sector may impact banks' retail loan portfolios

Over the last few quarters, due to stress in the corporate loan sector, banks have been trying to focus on retail loans

Slowdown in the economy, particularly the rural sector, may cast a shadow on the retail loan portfolio of banks this quarter.

According to top executives of public sector banks, stress in the agriculture and micro, small and medium enterprises (MSME) sectors could lead to higher slippages in the retail loan segment in the present quarter.

“The stress in both agriculture and MSME sectors are quite visible now. In case of agriculture, the scope of additional financing is there. In case of MSMEs, we are more careful and the level of scanning is high,” said Ashok Kumar Pradhan, managing director and