Personal Loan Segment Breaches Rs 50 Lakh Crore Mark In November 2023
Gross bank credit offtake witnessed an increase of 20.6 per cent year-on-year (YoY) in November 2023 propped by sustained robust demand from the personal loans and services segments, highlighted CareEdge ratings report.
The services segment reported a rise of 25.4 per cent YoY in November 2023 which is higher than 23.6 per cent in the month of October 2023 due to continued growth in trade, commercial real estate and Non-Banking Financial Services (NBFCs).
Without considering the merger of HDFC Bank and HDFC, it also reported a robust growth of 21.9 per cent YoY as against 21.3 per cent a year ago.
Industry moderated to 6.6 per cent YoY in November 2023 from 13.0 per cent over the year-ago period due to slower growth in Micro, Small and Medium Enterprises (MSME) and marginal growth in the infrastructure segment, the report mentioned.
Incremental gross bank credit has risen by 14.2 per cent in November 2023. Without considering the merger at 10.0 per cent, it was higher by approximately 112 basis points (bps) from 8.9 per cent over a year ago.
Vehicle loans registered a robust growth of 20.8 per cent YoY in November 2023 as compared to 22.3 per cent in the year-ago period. The growth can be attributed to comparatively higher sales in the festive season and the premiumisation of the vehicle market.
The other personal loans reached Rs 12.96 lakh crore and rose by 24.3 per cent YoY on account of the festival season, a rising trend in small ticket-size loans and faster turnaround due to digitalisation. However, the growth rate is likely to moderate given RBI’s action of increasing the risk weights on consumer loans.
Credit Card outstanding continued to be elevated in November 2023 reaching Rs 2.4 lakh crore, a YoY growth of 34.2 per cent, while staying at the same level sequentially.
Meanwhile, credit card transactions declined after the festive season neared its end, which can be seen by the sequential drop in online payments. However, the point of sale or PoS transactions have witnessed an increase. The credit card segment might see some moderation after the RBI increased the risk weights, the report mentions.
