Indian economy at risk of retail small-loan defaults

Personal-loan growth is moderating as the central bank last year clamped down on risky lending practices following a post-pandemic surge in credit. — Bloomberg

NEW DELHI: A rise in retail-loan defaults in India due to aggressive lending practices is reverberating in the stock market, with analysts worrying about possible spillover into the broader economy.

Concerns are mounting after lenders including Kotak Mahindra Bank Ltd and IndusInd Bank Ltd reported elevated stress in unsecured loans during second-quarter earnings, sending shares sliding.