Get the latest financial, economic and market news, instantly.
Subscribe
My Readse-paperNewslettersIFSC Code Finder NewWeb StoriesMintGenieFor You
Switch to the app Download App
e-paper
Home / Industry / Banking /  Personal retail loans rise 42 %, private banks surpass PSBs in lending, Study

Personal retail loans rise 42 %, private banks surpass PSBs in lending, Study

According to a study, retail lending has increased yoy by 42% in March 2022

According to a study, personal retail loan disbursements increased by 42 percent at end-March 2022 from March 2021.Private sector banks have outperformed public sector lenders in terms of disbursement of loan

Remarking an impressive growth in borrowings, a study has revealed that personal retail loan disbursements have increased by 42 % in March 2022 from March 2021.

Remarking an impressive growth in borrowings, a study has revealed that personal retail loan disbursements have increased by 42 % in March 2022 from March 2021.

The study conducted by Equifax and Andromeda has also revealed that Private sector banks have outperformed public sector lenders in terms of disbursement of the loan. Private banks showed the highest growth of portfolio outstanding with a 32 percent increase from March 2020 to March 2022, while that of public sector lenders stood at 21 per cent.

The study conducted by Equifax and Andromeda has also revealed that Private sector banks have outperformed public sector lenders in terms of disbursement of the loan. Private banks showed the highest growth of portfolio outstanding with a 32 percent increase from March 2020 to March 2022, while that of public sector lenders stood at 21 per cent.

The results of the study have filled the market again with positive sentiments in terms of business and economic growth. The Indian Economy is still reeling from the impact of COVID-induced lock downs and uncertainty.

The results of the study have filled the market again with positive sentiments in terms of business and economic growth. The Indian Economy is still reeling from the impact of COVID-induced lock downs and uncertainty.

According to the report, active personal loans increased by 2 crores year over year in March 2022. The number of active personal loans rose from 3.5 crores in March 2020 to 4 crores by March 2021. The trend continued and the number of loans increased to 6 crores by March 2022.

According to the report, active personal loans increased by 2 crores year over year in March 2022. The number of active personal loans rose from 3.5 crores in March 2020 to 4 crores by March 2021. The trend continued and the number of loans increased to 6 crores by March 2022.

The book size of personal loans increased from 5 lakh crore as of March 2020 to 6 lakh crore as of March 2021 and further to 8 lakh crore as of March 2022.

The book size of personal loans increased from 5 lakh crore as of March 2020 to 6 lakh crore as of March 2021 and further to 8 lakh crore as of March 2022.

"This is a strong indicator of the revival in consumption in the country," said K M Nanaiah, Managing Director, Equifax Credit Information Services Pvt Ltd and Country Leader, India & MEA, Equifax.

"This is a strong indicator of the revival in consumption in the country," said K M Nanaiah, Managing Director, Equifax Credit Information Services Pvt Ltd and Country Leader, India & MEA, Equifax.

The total portfolio outstanding of the retail industry increased from 71 lakh crore (March 2020) to 80 lakh crore (March 2021), and further to 89 lakh crore as of March 2022. The total portfolio outstanding, is the outstanding loan amount of the clients of all categories (except the ones that have been charged off).

MINT PREMIUMSee All

The total portfolio outstanding of the retail industry increased from 71 lakh crore (March 2020) to 80 lakh crore (March 2021), and further to 89 lakh crore as of March 2022. The total portfolio outstanding, is the outstanding loan amount of the clients of all categories (except the ones that have been charged off).

MINT PREMIUMSee All

"If the trend in the growth of personal loans sustains, we can safely assume the economy will do well in the coming years. At the same time, we must keep in mind interest rates are on the rise following three consecutive rate hikes by the Reserve Bank in four months," said Raoul Kapoor, Co-CEO, Andromeda Sales and Distributions Pvt Ltd.

"If the trend in the growth of personal loans sustains, we can safely assume the economy will do well in the coming years. At the same time, we must keep in mind interest rates are on the rise following three consecutive rate hikes by the Reserve Bank in four months," said Raoul Kapoor, Co-CEO, Andromeda Sales and Distributions Pvt Ltd.

The study also revealed that the retail industry reported 46 crore active loans as of March 2022.

The study also revealed that the retail industry reported 46 crore active loans as of March 2022.

Headquartered in Atlanta, Equifax is a data, analytics, and technology company. Founded in 1991, Andromeda is one of India's largest loan distributors.

Headquartered in Atlanta, Equifax is a data, analytics, and technology company. Founded in 1991, Andromeda is one of India's largest loan distributors.

(With inputs from PTI)

(With inputs from PTI)

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.