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    Retail loan quality deteriorating in India: CRISIL

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    Ratings agency said that Indian retail loan quality has deteriorated with rising interest rates, and some lenders could suffer significant losses.

    The agency expected gross non-performing retail loan assets to increase to around four per cent of total retail loans by March 2009 from 2.7 per cent in March 2007.

    “The system as a whole can absorb this, but lenders who are heavy on unsecured loans and on high-risk customers will suffer significant losses,” , head of financial sector ratings at CRISIL, said in a statement.

    Retail credit comprises a major portion of several top private sector banks including and .