Indian banks selling retail loan portfolios as deposits lag

Indian banks are increasingly selling retail loan portfolios to manage their finances, as deposit growth lags behind loan disbursements. This trend allows banks to offload non-performing loans and improve liquidity. However, it raises concerns about asset quality and financial stability. The strategy is seen as a response to the pressure from rising interest rates and regulatory changes. By selling these portfolios, banks can free up capital, reduce risk, and enhance their balance sheets, but it may also impact the availability of credit for retail borrowers.