TransUnion CIBIL’s latest report (Q2 CY19) showed growth decelerating further across most consumer lending categories (13% y-o-y) due to moderating macro-economic conditions. Origination volumes grew in credit cards and personal loans but declined or grew marginally for home loans, auto loans and LAP.
Overall receivables grew 41% y-o-y led by 30% y-o-y volume growth and 8% y-o-y automatic transfer service (ATS) growth. About 45% of origination volumes come from consumers in the age group of 25-35 years. There was no major change in proportion of below-prime customers in originations. Unsecured loan products have lower headline delinquency ratios primarily on account of higher write-offs, data that is not available in the public domain.
Overall personal loans grew 28% y-o-y led by 48% yoy volume growth, but 14% yoy decline in ATS to Rs20 lakh. Origination volumes have grown 134% yoy, primarily driven by NBFCs. NBFC balances and loan accounts in the micro loan size segment (ATS< Rs25,000) grew more than 5X y-o-y indicating a continued focus on smaller value personal loans.
Mortgages grew 10% y-o-y led by 4% yoy volume growth and 6% y-o-y growth in ATS at Rs1.3 million. ATS for private banks has come down marginally (Rs3.2 million from Rs3.4 million y-o-y) with increased focus on affordable housing. Home loan balances for HFCs have decelerated (8% y-o-y growth in 2QFY20 vis-à-vis 23.2% y-o-y in 2QFY19).
LAP loan balances grew 12% y-o-y led by 19% y-o-y volume growth and 6% y-o-y decline in ATS. ATS dropped sharply for NBFCs (Rs1.2 million y-o-y from Rs1.9 million). Fewer loans (15% of total originations vis-à-vis 23% yoy) were disbursed to new-to-credit customers.
Overall, auto loans grew 10% y-o-y led by 11% y-o-y volume growth and marginal ATS decline. Auto loan balances for NBFCs grew 16% y-o-y, but ATS declined 17% y-o-y. Below-prime customer originations increased y-o-y from 27% to 31% of total originations. 90-Days Past Due (DPD) delinquencies declined for private and PSU banks, but increased for NBFCs.
