Insights from RBI’s Financial Stability Report
In its latest Financial Stability Report (FSR), the Reserve Bank of India (RBI) sheds light on the rapid expansion of the retail credit segment, raising concerns about the pro cyclicality of lending and heightened debt servicing costs. While there are no immediate signs of stress, the report emphasizes the need for vigilance, especially given the impressive compound annual growth rate (CAGR) of 25.5% in retail loans between September 2021 and September 2023.