'Consumer lending growth slips to 13%’ in Dec quarter'

Mumbai: Consumer lending growth slipped for the sixth consecutive quarter to 13.1% in December 2019 quarter, as compared to 23.2% in the year-ago period, a credit information company said.

Amid the slowing growth, consumer loan delinquencies showed an uptick, with the NBFC (non-bank financial company) sector experiencing an aggravation of troubles and the loans against property (LAP) segment being most impacted, the data by Transunion Cibil showed.

It can be noted that retail or consumer credit has been pursued aggressively by lenders in the face of stress in the large ticket advances partly because of the segment's resilience.

However, the overall economic growth has slid to six-year low of 5% and unemployment has risen to four decade high.

From a growth perspective, credit card and personal loan segments recorded growth rates of 40.7% and 28%, respectively, while auto loans, LAP and home loans recorded comparatively more moderate rates, it said.

Free Press Journal