How is India Lending in 2023?
Home Loan's Higher Transmission Rates
As
home loans are directly linked to the repo rate
. Other loan rates don’t fall or rise as much.
Retail Loans in 2023
Retail Loans have
grown by 19% in FY23
. The share of retail loans in total loans has
increased to 32%
.
Retail Credit Growth
Retail credit is at a
lifetime high at ₹40 lakh crores
. Most recovery in credit growth is due to retail loan growth.
Consumer Durables
The consumer durables segment contributes only up to
1% of retail loans
. It has slowed to
20% in FY23 from 75% in FY22
.
Growth in Personal
Loans
The average ticket size of home, education, vehicle, and personal loans has
increased due to inflation
.
Average Loan Size
Average loan size has been stagnant for rural and semi-urban populations & declining for metropolitan areas. But it is not a de-growth.
Why is Loan Size Declining?
Loans are growing steadily, but the
number of accounts is growing 2x
as much. Hence, loan size is falling.
Average Loan Size - Public Banks
Public banks have
more industry loans
. However, the trend of private banks taking market share from public sector banks continues.
Average Loan Size - Private Bank
s
Private banks'
average loan size declines
as they take fewer risks and focus on retail portfolios.
Small Finance Banks - Market Shar
e
If you look at loans to small borrowers (< 2 lac), the share of small finance banks has
improved greatly
.
Small Borrowers - Metro Cities
Many small borrowers of private banks stay in metros. So,
credit cards & consumer loans dominate the loan mix
for these metros.
10 Fastest Growing Segments in FY23
The above image shows 10 fastest growing segments in financial year 2023.
10 Slowest Growing Segments in FY23
The above image represents 10 slowest growing segments in financial year 2023.
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