The Reserve Bank of India’s move to make margin-accretive unsecured lending costlier has thrown a spanner in the growth prospects of banks and finance companies. Retail loans, which comprise home loans, personal loans, car loans, and bank loans to non-banking financial companies (NBFCs), are estimated to account for around half of the incremental credit over the last one year. To put this rapid growth in context, take the case of Bajaj Finance.
