Increased origination of auto, gold loans and secured mortgage led to a 6.5 per cent growth in the overall lending of banks during the first quarter of 2016, according to the latest India Consumer Credit Trends Report by Equifax, an information solutions company.
In the second edition of the quarterly report, which deals with population-level debt and lending insights, including originations, balances, number of loans, and delinquencies, Equifax said for private banks, mortgage, auto and personal loans represented the bulk of new loans. Personal loans saw an increase in originations driven primarily by growth at private banks and non-banking financial companies (NBFCs).
Public sector banks (PSUs), on the other hand, dominated the financial lending space accounting for half of the country’s total receivables, with mortgage and agri loans accounting for 52 per cent.
The top 6 states viz Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Andhra Pradesh and Telangana contributed more than 50 per cent of the loan originations in the past 12 months as well as total period-end receivables in the country.
According to Manish Sinha, India Country Leader, Equifax, “The last quarter of the financial year is an important quarter for all lenders and as expected, has resulted in a growth in receivables. The past year has seen a lot of commentary on asset and lending quality, so it is no surprise that growth comes mostly from secured products like mortgage, auto and gold loans. Finally, it is noteworthy that delinquency in this period has increased 8 bps to 1.60%, despite the inflow of the new vintage loans.