Banks are looking at retail lending as the next growth driver as the sector recorded the lowest stressed advances ratio at 2% in December 2014 against 17.9% for the industry. Retail credit grew 18.3% as of March this year; private sector banks had the highest share of retail loans in their portfolio at 27.7% against 17.1% for public sector banks. A report by Anand Rathi Research estimates a 15-18% growth in mortgages and vehicle loans between FY15 and FY18, mainly driven by rising per-capita income, urbanisation, favourable demographics and declining household sizes.
