The Daily Brief Indian banks: a little cleaner, a little meaner
Nov 18, 2025
Explore the dynamics of Indian banking as loan growth shifts from corporate to retail and SMEs, revealing the changing landscape of lending. Discover how asset quality is improving overall, yet stress remains in agriculture and unsecured retail loans. Shift gears to the chipmaking industry, where rising costs and intricate partnerships redefine competition. Learn why advanced chip firms prioritize reinvestment for future success and how India's latest trade deficits are impacting the economy.
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Retail And SME Fuel Bank Growth
- Indian banks grew by double digits, driven by retail and SME lending while corporate loans cooled.
- SME growth is high-yield but riskier, and agri loans remain a stubborn stress pocket.
Corporates Pull Back From Big Bank Borrowing
- Corporate lending cooled as large firms used equity to repay bank debt and demand for big projects is weak.
- Kotak prioritized short-term working capital over long-dated project finance to protect pricing.
Loan Books Look Cleaner With Pockets Of Stress
- Overall NPAs sit at multi-year lows, but agriculture and SME segments show higher stress.
- Unsecured retail showed slippages earlier, prompting tighter underwriting and better collections.