Mumbai, Aug. 13 -- Banks have seen a reversal in lending trends over the past year, with retail loan growth slowing while corporate lending picked up in the June quarter after a resurgence in the second half of 2025-26.

For the quarter ended 30 June, several large and mid-sized banks reported corporate loan growth outpacing retail loan growth, which slowed largely owing to normalization in unsecured loan growth and in some secured loan segments, such as vehicle and housing loans.

Banks attributed the strong growth momentum in corporate loans to a pick-up in demand from sectors such as renewables, power and data centres.

Retail loans at most large banks grew 7-12% year-on-year in the June quarter, with State Bank of India the outlier at...