The lending pattern of banks in 2023-24 saw a recovery in lending to large corporates post COVID-19 contraction. The RBI intervened to improve the quality of retail loans by assigning higher risk weights to unsecured lending, slowing their growth. Loans to the services sector grew faster at 20.2% compared to retail at 17.7% in FY’2023-24. The RBI increased risk weights on unsecured consumer loans and credit cards, leading to a slowdown in unsecured loans growth to 20.8% from 26.7% a year ago.
