Over the past years, the number of active consumer durable loans has increased by 83 percent and is about to reach 1.95 crore. There might be many ambiguities about the benefits of demonetization for the economy. But CIBIL has found out that the number of credit cards accounts, after the November 2016 note-ban reform, has increased nearly 50 per cent. Not only this, the number of consumers with a card account has also seen an increase. For the record, there is 83 percent of increase in the number of active consumer durable loans over the past year to reach the 1.95 crore benchmark at the end of March. The rise can be attributed mainly to a 69 percent increase in the live borrower count to 1.39 crore.
Notably, the retail lending in India has also witnessed a spur. The loan book grew by 25% and the number of accounts posted a near one-third rise over its previous level. It also initiated an increase in asset quality, because of high demand for consumer durables and personal loans and credit cards.
It was also seen that the delinquency rates, that is 90 or more days past due (DPD) for major retail lending products, declined or we can say was more stable in the financial year 2018. Furthermore, there was robust growth in all consumption lending products like consumer durable loans, credit cards, and personal loans –during the period under review. Most of the growth in this product has been because of issuing higher volumes of smaller ticket loans. It was noted that average balance per consumer fell by 5.7 percent to INR 10,382.
Considering the growth specifically relating to credit cards, there is an increase of over 28 percent to INR 3.26 crore in the number of live accounts. Outstanding balances also increased by 43 percent to INR 75,100 crore. Consumer usage of credit cards has also registered a rise, the average credit card balance per borrower rose by 12 percent to INR 35,495.
We hope that this trend of increasing adoption of digital transaction channels will keep on working as the leader of future card growth. There was similar growth in personal loans, the number of live consumers saw an increase of INR 25 percent to 1.21 crore. Aggregate balances rose by 49 percent to INR 2,72,400 crore. These positive performance trends indicate that there is still significant growth potential in the retail lending market.