Risk-averse growth takes centre stage across India’s BFSI sector

India’s banking and financial services sector is entering a phase of steady but selective growth, with lenders increasingly prioritising asset quality, profitability and risk calibration over aggressive expansion, according to discussions at Antique Stock Broking’s 3rd Annual BFSI Conference 2025 this month.

- TBG NETWORK

Banks indicated that credit demand remains stable but skewed toward secured retail products such as home loans, MSME lending, gold loans and loans against property, while corporate and unsecured retail segments are yet to see a meaningful revival. Faster turnaround times driven by digitised origination and improved underwriting are supporting growth. Credit card issuers noted healthy spending growth, but loan growth is moderating due to lower revolver rates and a sharp slowdown in new card issuance, which has fallen by nearly 50-60 per cent. On asset quality, banks highlighted that delinquencies have stabilised, aided by tighter underwriting, cohort-ba