Retail lending up 25%, number of a/cs 32% in FY18: Cibil data

Source: The Hitavada      Date: 28 Jun 2018 12:24:59




RETAIL lending saw rapid growth in FY18, with the loan book rising by 25 per cent and the number of outstanding accounts by over 32 per cent, along with an increase in asset quality, due to high demand for consumer durable and personal loans and credit cards, said a report.Significantly, the delinquency rates 90 or more days past due (DPD) for major retail lending products declined or remained relatively stable during FY18, credit information firm TransUnion Cibil said in its report.
“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 report found robust growth in all consumption lending productsconsumer durable loans, credit cards and personal loans - during the period under review. The number of active consumer durable loans increased by 83 per cent over the past year to reach 1.95 crore at the end of March this year, led by a 69 per cent increase in the live borrower count to 1.39 crore.
“Much of the growth in this product has been driven by issuing higher volumes of smaller ticket loans,” the report said.

Consequently, the average balance per consumer fell by 5.7 per cent to Rs 10,382. In terms of credit cards, the number of live accounts rose over 28 per cent to 3.26 crore, while outstanding balances increased by 43 per cent to Rs 75,100 crore. “Over past two years, and particularly following the demonetisation event in Nov 2016, the number of credit card accounts has increased nearly 50 pc, while number of consumers with a card account has expanded as well,” the report said.