Indian Consumer Credit Market Slowdown Continues..!

Indian Consumer Credit Market Slowdown Continues;
Reliance on Unsecured Credit Raises Concerns

Latest TransUnion CIBIL Industry Insights Report shows risks rising in some consumer credit products

Growth in India’s consumer credit market continued to decelerate in the second quarter, driven primarily by secured lending products.As well, non-banking financial companies (NBFCs) remained under stress, with a recent portfolio shift to higher-risk unsecured credit,according to the newly-released TransUnion CIBIL CYQ2 2019 Industry Insights Report (IIR).

NBFCs, which have played a key role in consumer credit growth in recent years,saw slower growth in the second quarter compared to banks.NBFCs continued to face difficult funding challenges and consequently have been shifting their originations strategy away from larger-value loans to smaller-ticket personal loans.

Consumer credit balances across all major credit products grew 17.1% year-on-year (YoY)in Q2 2019, compared to 23.5% YoY in Q2 2018. Growth in credit cards and personal loans significantly outpaced increases in auto loans,home loans and loans against property (LAP).The total number of consumers with access to credit increased by 21.7% YoY in Q2 2019, which, although still quite high in comparison to most major economies worldwide, was down materially from the 26.3% jump YoY in Q2 2018.

Portfolio delinquency rates for most consumer credit products declined on a YoY basis in Q2 2019, the exception being for LAP. However, it can happen that high origination growth can mask portfolio-level delinquencies. To address this concern, TransUnion studied the delinquency dynamics of several fixed cohorts of accounts. This static pool analysis—also known as vintage analysis—confirmed the general improvement in delinquency rates YoY, but did reveal performance deterioration for smaller value personal loans and auto loans issued by NBFCs.

“The NBFC liquidity crisis is becoming a serious concern,as it could have negative ramifications on wider economic activity,” said Abhay Kelkar, vice president of research and consulting for TransUnion CIBIL. “Even though overall consumer credit delinquencies have remained largely stable through this slowdown, our data indicates that there are some stress build ups in NBFCs.While strong lender risk management policies are always important for the health of the lending market, we find ourselves increasingly in an environment where vigilant monitoring and thoughtful strategies are essential to minimize the impact of weakening portfolio performance.”

Credit Product
(INR billions)
Origination balances YoY % Change
Total Balances (INR billions)
Total Balances YoY% Change
Serious Delinquency Rates2  (Balance-Level)
Serious Delinquency Rates YoY Basis Point Change
Vintage Delinquency3 YoY Basis Point Change
Credit Card1
Personal Loan
Auto Loan
Home Loan
Loans Against Property
1.     Credit card originations are by account volumes in millions
2.     Serious delinquency rates are measured as the percentage of balances 90 or more days past due
3.     Vintage delinquency looks at all accounts originated between Q2 2017 and Q2 2018 and measures 90+ delinquency rates of those new accounts after 12 months of activity

Credit cards and personal loans largely driving credit market growth

Robust balance and originations growth in the unsecured lending categories of credit cards and personal loans continued in Q2 2019.

Healthy 30.2% YoY increase in credit card originations volume sin Q2 2019 led to strong 29.5% YoY growth in the total number of credit card accounts in Q2 2019. Over the same period,total credit card balances increased by34.3%.

During Q2 2019, there was a shift in credit card originations to higher-risk tiers. In Q2 2019, 32.1% of card originations were to consumers in below-prime risk tiers (sub prime and near prime), compared to 26.4% in Q2 2018.

Below-prime consumers, which are higher-risk borrowers, have a TransUnion CIBIL V2 credit score of 700 or lower. Full bandings are defined as:sub prime = 300-650, near prime = 651-700, prime = 701-750, prime plus = 751-800, and super prime = 801-900. Higher scores are indicative of lower risk.
Despite the shift in originations to higher-risk borrowers over the past year, credit card delinquencies improved by 27 bps YoY to 1.62% in Q2 2019.Balance-level delinquencies have ranged between 1.85-1.90% in the last five quarters. Vintage analysis confirms this improvement in delinquency across all risk tier sand delinquency at the portfolio level was not masking any hidden performance deterioration across individual origination cohorts.
Personal loan balances grew 35.0% YoY in Q2 2019, with origination volumes accelerating sharply – up 139.4% YoY in Q2 2019. NBFCs continued to be the primary driver of growth in this category. NBFC personal loan balances increased 51.4% YoY in Q2 2019, and the percentage of total origination volumes by NBFCs increased to 72.1% in the period from 48.4% in Q2 2018. The average ticket size (ATS) of NBFC personal loans dropped YoY to INR 41 thousand in Q2 2019 from INR 1.1lakh in Q2 2018, causing a sharp dip in overall ATS. Almost 50% of NBFC originations in Q2 2019 were to borrowers in below-prime segments, which represented an increase of 8.5% over Q2 2018.

Improvements in public sector (PSU) and private sector (PVT) bank personal loan delinquencies more than offset a YoY increase of 6 bps in NBFC delinquencies during the second quarter, resulting in an overall lower delinquency rate YoY.Vintage analysis also showed improvements in PSU (-12 bps) and PVT (-22 bps) delinquencies and deterioration in NBFC cohort performance (+51 bps). 
Breaking down NBFC vintage delinquencies further by loan size,TransUnion CIBIL’s analysis found an increase in delinquency for NBFC loans smaller than INR 50 thousand (+191 bps), which constitute almost 80% of NBFC personal loan originations.
Credit card and personal loan balances in below-prime and mid-risk tiers had higher growth rates than the market overall,”said Kelkar. “Thisindicates a greater willingness among lenders to relax their underwriting standards and extend more unsecured credit to higher-risk borrowers. This approach can certainly lead to growth, as we have seen, but it requires consistent and effective risk management strategies to be managed properly on an ongoing basis.”
Auto, Home Loans and LAP categories growing modestly
Sluggish passenger vehicle sales continued to affect auto loan growth and serve as a drag on India’s overall consumer credit market.
 Auto loan balances grew 10.9% YoY in Q2 2019, down significantly from growth of 23.3% YoY in Q2 2018. Auto loans recorded the slowest rate of growth of all major lending categories in Q2 2019.Balance-level auto delinquencies of PSU and PVT lenders showed YoY improvement in Q2 2019, reflecting those lenders’ continued focus on lower-risk borrowers. Delinquencies of NBFCs increased by 7bps YoY. Vintage analysis also showed an increase in delinquencies of NBFCs (+114 bps) across risk tiers. The increase in NBFC vintage delinquency is sharper for loans smaller than INR 2.5 lakhs (+164 bps), which forms almost 55% of NBFC auto loan acquisitions.
 In the housing market, affordability constraints among younger generations was a factor limiting overall home purchases in Q2 2019, consequently limiting credit growth. Originations volume sand balances again declined YoY in Q2 2019, implying likely soft market conditions going forward. Home loan delinquencies saw a small YoY improvement.
In Q2 2019, total home loan balances grew 14.5% YoY, compared to a 20.6% YoY increase in Q2 2018, a deceleration driven by lower loan origination levels. Growth of NBFC home loan balances in the period slowed to 13.6% YoY, versus 24.1% YoY in Q2 2018. Origination volumes declined by 11.9% in Q2 2019. Origination balances also continued to decline (a drop of 6.3%), with balances originated by NBFC lenders decreasing 17.9% YoY in Q2 2019, in sharp contrast to16.3% growth YoY in Q2 2018.
“Balance delinquencies improved marginally by 3 bps in Q2 2019 to 1.68%, compared to the same period last year,”said Kelkar.“Breaking that down, delinquency rates forPSU lenders improved YoY by 34; delinquency essentially remained flat for PVT lenders, with a small improvement of 3 bps; and NBFC portfolios saw a YoY delinquency increase of 27 bpsYoY in the period.”

Credit growth in loans against property (LAP) has been negatively affected by poor sentiment in the property market. As a result, originations continued to decrease.

LAP balances grew 16.7% YoY in Q2 2019, versus 26.4% YoY in Q2 2018. This reflected a sharp slowdown of growth in LAP balances of PSU lenders,from 35.4% YoY in Q2 2018 to 14.9% YoY in Q2 2019. Origination balances decreased 20.9% YoY in Q2 2019.

“Market pressures have caused a shift in the composition of LAP originations. Balances originatedby PSU and NBFC lenders declined 31% and 36% YoY, respectively, in Q2 2019, while at the same time balances originated by PVT lenders grew 12% YoY,”continued Kelkar. “This increased the PVT share of LAP originations to 37% in Q2 2019 from 26% in Q2 2018.”

LAP saw the most significant increase in delinquencies over the past year among major consumer credit products. Balance-level delinquency rates increased by 25 bps to 3.47% in Q2 2019, reflecting increases across PSU, PVT and NBFC lenders of29, 27 and 49 bps, respectively. These delinquency increases primarily occurred in loans larger than INR 1 Crore.

“The Indian consumer credit market continues to expand at a rate higher than most other major economies, but there are growing pains associated with that expansion. Originations and balance growth continue to be robust for unsecured products, including credit cards and personal loans, but a higher share of this growth is to higher-risk borrowers.  While overall delinquency rates have generally remained stable, there are indications of higher risks in the market that lenders must understand, and adjust their strategies to address effectively,” said Kelkar.

“In today’s challenging market, it is critical that lenders conduct increasingly sophisticated analyses, such as vintage analysis, to better understand the underlying health of their portfolios,” added Kelkar. “Such analysis will play an important role in helping ensure institutions acquire accounts with acceptable risk, closely manage loan loss reserves and adjust pricing appropriately.”

For more information about the TransUnion CIBIL Industry Insights Report, please visit

About the TransUnion CIBILIndustry Insights Report
TransUnion CIBIL’sIndustry Insights Report is an in-depth, full-population solution that provides statistical information every quarter from TransUnion CIBIL’s consumer bureau database, aggregated across virtually every live credit file on record. Each file contains hundreds of credit variables that illustrate consumer credit usage and performance. 

By leveraging the Industry Insights Report, institutions across a variety of industries can analyze market dynamics over an entire business cycle, helping to understand consumer behavior over time and across different geographic locations throughout India. Businesses can access more details about and subscribe to the Industry Insights Report at

About TransUnion CIBIL

TransUnion CIBIL is India’s leading credit information company and maintains one of the largest repositories of credit information globally. We have over 3000 members–including all leading banks, financial institutions, non-banking financial companies and housing finance companies–and maintain more than 1000 million credit records of individuals and businesses.

Our mission is to create information solutions that enable businesses to grow and give consumers faster, cheaper access to credit and other services. We create value for our members by helping them manage risk and devise appropriate lending strategies to reduce costs and increase portfolio profitability. 

With comprehensive, reliable information on consumer and commercial borrowers, they are able to make sound credit decisions about individuals and businesses. Through the power of information, TransUnion CIBIL is working to support our members drive credit penetration and financial inclusion for building a stronger economy.

We call this Information for Good. For more information visit:

For further information contact:
Namrata Parashar


Registered Real Estate Agents in Tamil Nadu RERA


The Real Estate (Regulation and Development) Act, 2016 aims to regulate and promote the real estate sector by regulating the transactions between buyers and promoters of residential as well as commercial projects. 

It also has provisions for establishing a regulatory authority at state level called "Real Estate Regulatory Authority" (RERA) for monitoring the real estate sector and adjudicating disputes relating to Real Estate Projects. The main aim of the Act is to protect buyers and help investment in Real Estate Sector.

Registered Projects (Tamil Nadu)

2017 :  280
2018 : 564
2019 up to October : 325

Registered Real Estate Agents (Tamil Nadu)
2019 up to October: 625
2018 : 205
2017  : 185

Rejected Projects
2017 to 2019 October : 22

Withdrawn Projects
2017 to 2019 October :  15

Returned Projects
2017 to 2019 October : 12

Before the Authority (Form 'M') - List of cases for which final orders passed
2017 to 2019 October  : 65

Before the Adjudicating Officer (Form 'N') - List of cases for which final orders passed
2017 to 2019 October  : 255


The Government of India have notified the Real Estate (Regulation and Development) Act, 2016. This Act provides for establishing Real Estate Regulatory Authority (RERA) and Appellate Tribunal for monitoring and adjudicating disputes relating to real estate projects and also to frame Rules under this Act. The Tamil Nadu Government in G.O.Ms.No.112, Housing & Urban Development Department, dated 22.06.2017 has approved the Tamil Nadu Real Estate (Regulation & Development) Rules, 2017 to carry out the provisions of Real Estate (Regulation & Development) Act, 2016.
Registration of all Real Estate projects and Real Estate agents is made mandatory with RERA. No sale in a real estate project can be made without registration of the project with RERA. These Rules will apply to all ongoing projects and future projects where the area of land exceeds five hundred square meters or the number of apartments proposed to be developed exceed eight inclusive of all phases. It is mandatory for a promoter to upload the details of the proposed project on the website of RERA, including details of registration, types of apartments or plots booked, list of approvals taken etc. Both promoter and buyer are liable to pay equal rate of interest in case of any default from either side. Similarly, property dealers, brokers, middlemen by whatever name called have to register with TNRERA.
Failure to register with TNRERA is an offence and punishable with fine or imprisonment or both.
The office of the Authority is functioning in Door No.1A, 1st Floor, Gandhi Irwin Bridge Road, Egmore, Chennai - 600008. Office Hours: 10.00 AM to 5.45 PM (Saturday & Sunday Holiday).



The Power of Compounding : Leading Shares and Large Cap Mutual Funds

The Power of Compounding

The Power of Compounding :   Shares and Large Cap Mutual Funds

Apple has returned 51,000% since its IPO, which has translated to a CAGR of only 17%.

This CAGR 17% is similar to that of many boring large cap mutual funds too like Franklin Templeton Bluechip and HDFC top 100

Total dividend paid by TCS ₹18,762 crore is the in 2019-20, which amounts to ₹50 per share.

Total dividend paid by TCS  ₹18,762 crore is the in 2019-20, which amounts to ₹50 per share.

TCS paid dividends of ₹5 per share in Q1, special dividend of ₹40 per share in Q2 and interim dividend of ₹5 per share in Q2. 

Its outstanding number of shares are 375.24 crore.


Indian Overseas Bank upgraded Health Care Plus Insurance Policy

 Indian Overseas Bank  upgraded Health Care Plus Insurance Policy

Indian Overseas Bank launchedan upgraded Health Care Plus Insurance Policys pecifically to its customers through M/s Universal Sompo General Insurance Co Ltd.

The Health care policy is a co- branded Insurance scheme exclusively designed by Universal Sompo General Insurance company to IOB Customers with a Sum Insured starting from Rs. 50,000 and going up toRs. 15 Lakhs.

The policy issuance has made on a real – time basis at the IOB Bank branches to its customers through integration of technology of the two institutions.

Shri. Karnam Sekar, MD & CEO of IOB along with Shri. K.Swaminathan& Shri. Ajay Kumar Srivastava, Executive Directors of IOB and Shri. O.N.Singh, Chairman Universal Sompo General Insurance Company Ltd lancing the Insurance product on 24.10.2019 at IOB, Central Office.

Indian Overseas Bank Health Care Plus Policy (Revised), is a one of its kind family floater facility where the premium is charged as per the age of the proposer with no medical check-up up to the age of 50.

The product was launched by Shri. Karnam Sekar, MD & CEO of IOB in the presence of Shri. O N Singh, Chairman- Universal Sompo General Insurance Co Ltd. Top officials of the Bank and the Insurance company were present in the occasion.

Commenting on the launch of the product IOB Health Care Plus Policy, Shri. Karnam Sekar, MD & CEO of IOB stated that “We are extremely delighted to offer our products to our customers by harnessing technology tools to minimize the waiting period of issuing a policy to bank customers”.




1.  MCX

2. CUB 



DIWALI Muhurat Trading 2019 SHARES BY AK Prabhakar

 DIWALI Muhurat Trading 2019  SHARES BY AK Prabhakar

AK Prabhakar, Head Research -IDBI Capital



3. ITC


Motilal Oswal Securities Dipavali Largecap stock picks for 2019-2020

Motilal Oswal Securities  Dipavali Largecap stock picks for 2019-2020




 Bhari Airtel


 Hindustan Unilever



Motilal Oswal Securities: Dipavali Share Midcap stock picks for 2019-2020

Motilal Oswal Securities: Dipavali Share Midcap stock picks  for 2019-2020

Indian Hotels

 M&M Fin serv

 Ashok Leyland

 Aditya Birla Fashions

 JK Cement


 Petronet LNG

 PI Industries


IIFL Securities Dipavali Share Largecap stock picks for 2019-2020

IIFL Securities Dipavali Share Largecap stock picks for 2019-2020

 Kotak Mahindra Bank
 Axis Bank

And Top midcap mutual fund schemes.


IIFL Securities Dipavali Share Midcap stock picks for 2019-2020

IIFL Securities Dipavali Share Midcap stock picks  for 2019-2020


 Gujarat Gas

 Deepak Nitrite



Nirmal Bang Securities Top Dipavali Share Picks for 2019-2020

Nirmal Bang Securities  Top Dipavali Share Picks for 2019-2020

 APL Apollo Tyres

 DCB bank

India Metal Ferro Alloys

Jubilent Lifesciences

Polycab Indai

Anup Engg

Welspun corp



Blog Archive

நிதி முதலீடு


Recent Posts

Latest Posts

Find us on Facebook