New-to-credit borrower share shrinks in Q3: Report

THE SHARE OF new-to-credit (NTC) borrowers dropped year-on-year across loan products, barring the consumer durable segment, for October-December quarter, a report said on Tuesday.

- FE BUREAU

The NTC share in consumer durable loans rose to 16.3% from 16.2% a year earlier, according to the CRIF High Mark’s December report.

Two-wheeler loans continued to have the highest NTC share at 38.3%, though this marked the sharpest decline from 41.2% a year ago. Auto and housing loans recorded moderate NTC penetration of 9-10%. The NTC share in gold and personal loans fell to below 5% while the same for credit cards was stable at 8.5%.

Overall, India’s retail lending portfolio expanded to ₹162.7 lakh crore, up 18.1% year-on-year (YoY), with 690 million active loan accounts, the report said. The asset quality improved, with portfolio-at-risk (PAR) 31-180 days declining to 3.1% from 3.6% a year earlier. Quarterly originations for the period under review rose 41% YoY to ₹25.3 lakh crore.