New Delhi, Jan. 12 -- Unsecured lending by banks in the country has witnessed a sharp rise over the last two decades, increasing concerns around risk sensitivity, according to a report by the State Bank of India (SBI).

The report stated that unsecured advances (Loans) expanded significantly from Rs 2 lakh crore in FY05 to Rs 46.9 lakh crore in FY25. As a result, the share of unsecured lending in total bank lending increased to 24.5 per cent in FY25 from 17.7 per cent in FY05.

It stated, "Sharp rise in unsecured lending raises risk sensitivity...Unsecured advances expanded from Rs 2 lakh crore to Rs 46.9 lakh crore".

The report highlighted that since FY19, the share of unsecured lending has remained continuously above 20 per cent, under...