Loan portfolio up by 6.5% in the first quarter of 2016: Equifax report

NEW DELHI: The loan portfolio has grown by 6.5% in the first quarter of 2016, with secured mortgage, auto and gold loans leading the pack. This was revealed by the second edition of Equifax's India Consumer Credit Trends report. At the same time, the 90+ delinquency rates also grew to 1.6%, an 8 bps increase from the previous quarter mainly due to the unsecured loan delinquencies. Home loans and personal loans were the best performing assets with delinquency rates of 0.49% and 0.47%, respectively.

"The past year has seen a lot of commentary on asset and lending quality, so it is no surprise that growth comes mostly from secured products like mortgage, auto and gold loans. It is noteworthy that delinquency in this period has increased despite the inflow of new vintage loans," said Manish Sinha, India Country Leader, Equifax.

While the public sector banks accounted for half of the country's total receivables, with mortgage and agri loans accounting for 52%, their delinquency rate was 2.16%, the rise mainly due to business, auto and educational loans. For private banks, mortgage, auto and personal loans comprised most of the new loans. Personal loans saw an increase in originations primarily due to growth at private banks and non-banking financial companies (NBFCs).

Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Andhra Pradesh and Telangana contributed more than 50% of loan originations in the past year.