The total lending market size in India has increased to Rs 174 lakh crore at the end of March, with retail loans accounting for 48.9%. According to a study by credit bureaus, the share of commercial loans was 49.5% and the remaining 1.6% was contributed by microfinance. CRIF high mark.
Retail credit grew 13.6% to Rs 85.2 lakh crore in FY12, outpacing both commercial credit growth and microfinance credit expansion. Commercial credit grew 8.6% to Rs 86.3 lakh crore. Microfinance grew 10% to Rs 2.9 lakh crore.
Overall, retail, microfinance and commercial loans saw an 11% increase in new loan originations in FY22.
The study captured lending by both banks and non-banking finance companies.
“India’s credit sector maintained an accelerated growth trajectory despite unprecedented challenges arising due to the second wave of COVID-19. This revival in the credit landscape indicates economic recovery and is extremely encouraging,” said Sanjit Davar, Managing Director, CRIF High Mark.
A major chunk of retail loans in terms of value comes from the home loan segment, which has a portfolio outstanding of Rs 25.5 lakh crore, which contributes around 30% of the retail lending universe.
As per the active loans count, credit cards dominated the market with a share of 17.2%, followed by personal loans (14.1%), agricultural loans (11.8%), consumer durable loans (11.3%) and gold loans (11. %) ranked. Home loans accounted for just 3.3%, while auto loans had the lowest share of 2.9%.
The study showed that public sector banks enjoyed the highest market share in both the home loan (41%) and personal loan (42.3%) segments, while private banks held 19.6% and 37% share, respectively. Housing finance companies with 35.8% market share were second only to public sector banks in outstanding home loans.
Public sector banks (35.6%) and their private counterparts (37.4%) were almost face-to-face in auto loan market share. However, the two-wheeler loan segment was dominated by non-banking finance companies with a market share of 64.4%, followed by private banks with 30.1%, according to a report titled ‘How India Lends’.