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 Banks

Private banks' average loan size declines as they take fewer risks and focus on retail portfolios.

Small Finance Banks - Market Share

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.