Yes Bank has reported that a significant portion of its fresh slippages in the second quarter come from its unsecured loan portfolio, with total retail slippages reaching Rs 1,179 crore for the July-September period.

This trend of increasing slippages in unsecured loans is not unique to Yes Bank, as other lenders are also facing similar issues. Bajaj Finance has acknowledged the need to tighten its underwriting standards due to the rising risks associated with unsecured lending.

The rapid growth in the personal loan segment over the past decade is causing concerns among Indian lenders regarding the sustainability of this growth in light of increasing defaults.