Meanwhile, consumer credit has been on a roll over the same period, as bankers groaning under the weight of corporate defaults have switched attention to individual loans. Should Indian policymakers worry about the financial stability implications of growing consumer borrowing? There also needs to be more clarity about the exact nature of the consumer loans being dished out, especially the amounts given to more high-risk clients. At least some of this consumer spending has been powered by loans rather than income growth. In that case, the consumer loans party could end in grief.

Source: Mint February 27, 2018 19:41 UTC