India’s largest private banks are lending faster again but households are not leading the acceleration. Advances grew between 15% and 20% at HDFC Bank, Axis Bank, ICICI Bank and Kotak Mahindra Bank in the June quarter, powered predominantly by corporate, SME and business-banking demand, while retail-loan growth remained uneven at 7%–12%, marking a shift in India’s credit cycle.
Companies are borrowing more for working capital, refinancing and liquidity buffers, while unfavourable bond market conditions are redirecting some funding demand towards banks. Retail disbursements are beginning to improve, but the expansion has yet to translate into a broad-based surge in outstanding consumer loans.
