MUMBAI: Retail lending saw speedy expansion in FY18, with the loan guide rising by way of 25 per cent and the selection of remarkable accounts by way of over 32 per cent, along side an build up in asset high quality, due to prime demand for consumer durable and personal loans and credit cards, said a document.
Significantly, the delinquency rates 90 or more days late (DPD) for main retail lending merchandise declined or remained relatively strong all through FY18, credit score information firm TransUnion Cibil said in its document.
"The retail lending market in the country grew significantly over the year ended March 2018, with balances increasing by 25 per cent from Q1 2017 to Q1 2018 and the number of outstanding accounts increasing by more than 32 per cent over the same period," Cibil said.
The document found robust expansion in all intake lending merchandise consumer durable loans, credit cards and personal loans - all through the period underneath assessment.
The selection of energetic consumer durable loans larger by way of 83 per cent over the last yr to succeed in 1.95 crore at the end of March this yr, led by way of a 69 per cent build up within the reside borrower rely to 1.39 crore.
"Much of the growth in this product has been driven by issuing higher volumes of smaller ticket loans," the document said. Consequently, the common steadiness per consumer fell by way of five.7 per cent to Rs 10,382.
In phrases of credit cards, the selection of reside accounts rose over 28 per cent to 3.26 crore, whilst remarkable balances larger by way of 43 per cent to Rs 75,100 crore.
"Over the past two years, and particularly following the demonetisation event in November 2016, the number of credit card accounts has increased nearly 50 per cent, while the number of consumers with a card account has expanded as well," the document said.
Consumer utilization of credit cards has also larger, with the common credit card steadiness per borrower rising 12 per cent to Rs 35,495. Cibil anticipated that the fashion of accelerating adoption of digital transaction channels must proceed to behave as a tailwind for future card expansion.
Personal loans saw equivalent expansion dynamics, with the selection of reside consumers expanding by way of 25 per cent to 1.21 crore, whilst combination balances rising by way of 49 per cent to Rs 2,72,400 crore.
The document found that in spite of the numerous expansion in retail lending lately, consumers proceed to do a just right job of managing their debts, with the delinquency rates for intake lending merchandise final at low stage.
The 90+ DPD steadiness delinquency charge for consumer durable loans declined by way of 43 foundation issues year-over-year to succeed in zero.89 per cent by way of March-end.
The delinquency charge for personal loans dropped 19 foundation issues over the yr to zero.52 per cent.
The credit card 90+ DPD steadiness delinquency charge larger modestly by way of 9 foundation issues to 1.70 per cent in Q1 2018, however remained essentially unchanged from the level two years prior in Q1 2016.
"These positive performance trends indicate that significant growth potential remains for the retail lending market," said Yogendra Singh, vice-president (research and consulting), Cibil.
Significantly, the delinquency rates 90 or more days late (DPD) for main retail lending merchandise declined or remained relatively strong all through FY18, credit score information firm TransUnion Cibil said in its document.
"The retail lending market in the country grew significantly over the year ended March 2018, with balances increasing by 25 per cent from Q1 2017 to Q1 2018 and the number of outstanding accounts increasing by more than 32 per cent over the same period," Cibil said.
The document found robust expansion in all intake lending merchandise consumer durable loans, credit cards and personal loans - all through the period underneath assessment.
The selection of energetic consumer durable loans larger by way of 83 per cent over the last yr to succeed in 1.95 crore at the end of March this yr, led by way of a 69 per cent build up within the reside borrower rely to 1.39 crore.
"Much of the growth in this product has been driven by issuing higher volumes of smaller ticket loans," the document said. Consequently, the common steadiness per consumer fell by way of five.7 per cent to Rs 10,382.
In phrases of credit cards, the selection of reside accounts rose over 28 per cent to 3.26 crore, whilst remarkable balances larger by way of 43 per cent to Rs 75,100 crore.
"Over the past two years, and particularly following the demonetisation event in November 2016, the number of credit card accounts has increased nearly 50 per cent, while the number of consumers with a card account has expanded as well," the document said.
Consumer utilization of credit cards has also larger, with the common credit card steadiness per borrower rising 12 per cent to Rs 35,495. Cibil anticipated that the fashion of accelerating adoption of digital transaction channels must proceed to behave as a tailwind for future card expansion.
Personal loans saw equivalent expansion dynamics, with the selection of reside consumers expanding by way of 25 per cent to 1.21 crore, whilst combination balances rising by way of 49 per cent to Rs 2,72,400 crore.
The document found that in spite of the numerous expansion in retail lending lately, consumers proceed to do a just right job of managing their debts, with the delinquency rates for intake lending merchandise final at low stage.
The 90+ DPD steadiness delinquency charge for consumer durable loans declined by way of 43 foundation issues year-over-year to succeed in zero.89 per cent by way of March-end.
The delinquency charge for personal loans dropped 19 foundation issues over the yr to zero.52 per cent.
The credit card 90+ DPD steadiness delinquency charge larger modestly by way of 9 foundation issues to 1.70 per cent in Q1 2018, however remained essentially unchanged from the level two years prior in Q1 2016.
"These positive performance trends indicate that significant growth potential remains for the retail lending market," said Yogendra Singh, vice-president (research and consulting), Cibil.
Retail lending up 25%, number of accounts 32% in FY18: Cibil data
![Retail lending up 25%, number of accounts 32% in FY18: Cibil data]()
Reviewed by Kailash
on
June 28, 2018
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