Unsecured lending products growth among highest, credit card NPAs shoot up: Report
Credit card non-performing assets rose 0.66 per cent to 2.94 per cent as of March 2023, a credit information company said in a report on Thursday.
From a loan growth perspective, outstanding balances on credit cards grew 34 per cent in the year to March 2023, and personal loans were up 29 per cent. (Image Credit - Reuters/file)
Credit card non-performing assets rose 0.66 per cent to 2.94 per cent as of March 2023, a credit information company said in a report on Thursday.
The report, which comes amid heightened concerns on the riskier unsecured loans portfolios from the regulator, also said that such products like credit cards and personal loans grew the fastest, the report by Transunion Cibil said.
On the asset quality front, credit card balances unpaid for over 90 days stood at 2.94 per cent, which is a 0.66 per cent jump over the year-ago period, while the same for personal loans improved by 0.04 per cent to 0.94 per cent, it added.
From a loan growth perspective, outstanding balances on credit cards grew 34 per cent in the year to March 2023, and personal loans were up 29 per cent.
Loan against property, a product typically used by small businesses for funding needs, was the fastest-growing retail product with a 38 per cent rise, according to the report.
Interestingly, home loans – considered by many as the mainstay of retail lending - were the slowest at 14 per cent, which can be indicative of the impact of the rate hikes.
If one were to consider only the three months to March, home loans stayed flat by a value perspective, but were down 11 per cent by volumes, indicating an increasing propensity among home buyers for expensive properties where the loan ticket sizes are higher.
Lenders seem to vary about the potential impact on asset quality when it comes to retail loans, and seem to be keeping away from new to-credit customers, the report said, pointing out that such customers accounted for only 16 per cent of the loans originated in the three months to March 2023 against 19 per cent in the year-ago period and 23 per cent in the first quarter of 2022.
Share of the youth seems to be growing, with those in the 31-45 age group, accounting for 45 per cent of the loan originations in the January-March 2023.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
Written By: PTI
Updated: Thu, Jul 13, 2023
07:21 PM IST
07:21 PM IST
PTI
RELATED NEWS