ICICI Bank, AU SFB well-placed as credit cycle turns more disciplined: Siddhartha Khemka
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Channel checks across loan selling agents indicate that while overall credit growth is stabilising, the composition of growth is changing, with secured retail and MSME lending emerging as key drivers. The most notable shift is in MSME credit, where public sector banks have re-established dominance over the past 6–9 months. Faster turnaround times of 2–4 days, wider use of credit guarantee-backed structures, and repo-linked pricing have materially narrowed the cost gap with private lenders. This execution-led push, supported by a strong policy focus on MSME financing, is enabling PSU banks to gain market share, particularly in working capital and smaller business loans. In contrast, private banks are remaining selective, preferring hybrid structures that combine partial guarantees with collateral, reflecting a sharper focus on risk-adjusted returns. Live Events Unsecured business lending is undergoing a clear reset. Growth has moderated to...