India’s largest private-sector banks are seeing a change in where loan demand is coming from. Recent growth in advances is being powered more by companies and smaller businesses, while household borrowing is not expanding at the same speed.
The trend points to stronger activity in corporate and SME lending, with working capital needs, refinancing and broader business banking helping lift credit demand. That shift suggests businesses are turning back to banks for funding even as consumer-led borrowing remains relatively muted.
Among leading lenders such as HDFC Bank, Axis Bank, ICICI Bank and Kotak Mahindra Bank, loan growth has reportedly picked up into the mid-teen range. But the mix of that growth matters: business-focused segments are contributing more, while retail categories are not providing the same level of momentum.
The divergence highlights an uneven credit environment in India’s banking sector. Corporate balance sheet activity and operational funding needs are supporting bank advances, but softer retail appetite is keeping overall loan expansion from being more broad-based.
