Industry Dashboard Nov23

Credit Landscape
Lending Overview
November 2023
Table of Contents
1. Overall Lending Summary
2. Key Highlights - Retail
3. Retail Lending Overview
4. Product-level Overview – HL, LAP, PL, AL, CC
5. Agriculture Lending Overview
6. Product-level Overview – KCC, TL, AGRI-OTH
7. MFI Lending Overview
8. Key Highlights - MSME
9. Borrower Level Summary – Micro, Small, Medium
© 2023 TransUnion CIBIL All Rights Reserved 2

Overall Lending Summary
INDUSTRY | AUG-23
Outstanding
Y-o-Y 90+ rates by Bps change
Balance Market share
Growth Balance from Aug-22
(in Lakh Cr)
Corporate 74 11% 37% 14.6% -344bps
MSME 25 13% 13% 2.5% -88bps
Retail 95 23% 48% 2.3% -44bps
MFI 4 32% 2% 0.9% -222bps
Total 198 17%

RETAIL LENDING OVERVIEW
© 2023 TransUnion CIBIL All Rights Reserved

Key Highlights – Retail Lending (1/2)
Credit Demand Inquiry – Oct-23 | Origination – Aug-23
• Demand for consumption lending products increased YoY by 52% in Oct-23

and for two-wheeler loans, it has increased by 30%. # YoY
• Demand from NBFCs increased YoY by 67%, followed by PSBs 60%and Demand 5.8Cr +54%
Private Banks by 46% in Oct-23.
Origination Volume 2.9Cr +2%

Credit Supply*
• PSBs witnessed YoY growth of 18% & 20% in terms of origination volume and Origination Amount 5.1L Cr +15%
value respectively in Aug-23. NBFCs and Private Banks origination value
increased YoY by 19% in Aug-23. Total Origination
2.4Cr +6%
• Sourcing to Prime Plus and Super Prime consumers increased YoY by 30% Consumer
and 53% respectively in Aug-23. NTC sourcing decreased by 7%.
Share of origination
• Personal Loan origination volume increased by 15% YoY in Aug-23 and 13% -430bps
Housing Loan volume decreased by 9% in the same period. from NTC Consumer

*Supply analysis is for the quarter i.e. 3M ended period (applies to all supply commentary)
Key Highlights – Retail Lending (2/2)
Portfolio Portfolio – Aug-23
• Outstanding balance of two-wheeler loan and property loan grew YoY by

36% and 27% respectively in Aug-23. # YoY
• Outstanding balances of NBFCs grew YoY by 28%, followed by Private
banks at 22% and PSBs at 20% in Aug-23. Outstanding Balance 95LCr. +23%
• As of Aug-23, 45% of the 24.2 cr live consumers are in below prime score 30+ DPD by Balance
5.4% -95bps
bucket. %
90+ DPD by Balance
Credit Performance %
2.3% -44bps
• 30+ and 90+ delinquencies for all lenders has remained stagnant in last six
months. Ever 30+ DPD in 6
5.1% -88bps
months*
• Balance-level 30+ delinquencies of two-wheeler loans is higher at 6%
compared to other secured products as of Aug-23.
Ever 90+ DPD in 12
• Reduction in 30+ and 90+ consumer-level delinquency and score downgrades 5.4% +154bps
months**
for prime segment consumers.
*Sourcing (t-6)
© 2023 TransUnion CIBIL All Rights Reserved **Sourcing (t-12) 8
Total live consumer is at 24.2 as of Aug-23 with 45% are in below prime score bucket.
Consumer level 90+ DPD declined to 5% in Aug-23 from 6% in Aug-22.

23.1% of the consumers from Prime score bucket moved to lower score bucket

HOUSING LOAN

Key Highlights – Housing Loan
• Affordable housing loans • % share of origination value • There was a decline in

declined YoY by 13% and 11% increased for PSBs to 40% in sourcing for subprime
both in terms of volume and Aug-23 as compared to 35% consumers in Aug-23
value respectively in Aug-23. in Aug-22. compared to Aug-22 and an
increase of 7% in the super
• Regular housing loan volume is
prime score bucket..
declined YoY by 1% but value
increased by 5% in Aug-23.
• Total outstanding balance grew • 90+ delinquencies in affordable • In terms of volume, 30+ at 6M
YoY by 16% in Aug-23. housing loans are slightly higher ever vintage delinquencies of
at 1.5% in Aug-23 compared to Feb-23 sourcing is around 5%
• Outstanding balance of Private
0.8% for regular housing loans. for both affordable and regular
Banks and PSBS grew YoY by
housing loans.
16% in Aug-23. NBFCs grew by • Private banks have lowest
14%. delinquency among all lenders.
Average loan size* is calculated as sanctioned amount / trades

© 2023 TransUnion CIBIL All Rights Reserved Link to Detailed Dashboard 22
PROPERTY LOAN

Key Highlights – Property Loan
62% of the total origination volume is towards

The volume and value of origination increased by lower ticket size loans upto 10L buckets. However,
01 11% and 22% respectively in Aug-23. 02 the % share of lower ticker size loans is gradually
decreasing.
NTC sourcing by NBFC lenders increased by 34% Outstanding balances grew by 27% YoY in Aug-23.
03 in Aug-23 as compared to Aug-22. For all other 04 NBFCs witnessed higher portfolio growth of 33%,
lenders it has reduced in the same period. followed by private banks at 26% and PSBs at 20%.
NBFCs 30+ and 90+ delinquency is more than NBFCs have the lowest roll back and cure rates
05 double as compared to Private Banks. 06 (30-59 dpd bucket) among all lenders in Jul-23.

PERSONAL LOAN

Key Highlights – Personal Loan
• Total personal loan origination • Personal loan approval rates • NBFCs and PSB have
volume increased by 15% and declined YoY for all lenders. reduced NTC sourcing
value increased by 20% Aug- compared to last year; While
• NBFCs have the lowest
23 compared to Aug-22. sourcing of NTC consumers
approval rate among all
by private banks increased by
• STPL volume increased by lenders at 12%.
6% in Aug-23.
12% and loans of >25K ticket
size increased by 25%.
• Outstanding balance grew by • There has been marginal • Ever 30+ delinquency on 6
27% YoY as of Aug-23. NBFC decrease in 30+ and 90+ MOB is 10% higher for NBFCs
witnessed highest growth of delinquency for both STPL compared to PSBs and
51% YoY, followed by Private and >25K ticket size loans. Private banks which is around
Banks 24% and PSBs by 22%. 3%.

AUTO LOAN

Key Highlights – Auto Loan
Origination volume of 10L+ ticket size loans increased by

Auto loan origination volume saw growth of 6% YoY in Aug-
01 23 whereas value grew by 16% in the same period. 02 26% YoY and decreased for <5L ticket size loans by 8% in
Aug-23.
NBFC saw significant growth both in terms of volume and The approval rate of private banks and PSBs is 39% and
03 value 14% and 31% respectively in Aug-23. 04 37% respectively and NBFCs is at 30% in Jul-23.
AL's portfolio has grown by 24% in the last one year. NBFC
The last one year saw a significant decline in 30+ DPD for
05 witnessed 35% YoY growth, followed by PSBs at 22% and
Private banks at 19%.
06 NBFCs. 90+ DPD is less than 1% for all lenders.

CREDIT CARD

Key Highlights – Credit Card
• Credit card demand saw 6% mom • Supply in terms of volume increased by

growth in Oct-23 as compared to 6% and credit limit increased by 28% YoY
previous month. in Aug-23.
• Demand from private banks increased • Sourcing to NTC borrowers YoY
MoM by 8% and 3% from PSBs in Oct- decreased by 35% for Private Banks and
23. 24% for PSBS in Aug-23
• Outstanding balance grew by 36% YoY • Marginal decrease seen in 30+ and 90+
in Aug-23. PSBs and Private banks grew DPD rates in Aug-23 as compared to last
by 63% and 32% in the same period. two months.
• Balance distribution in above prime • Ever 30+ DPD rates at 6 month is in the
score bucket increased by 2% in Aug-23 same range as last 6 months between 4%
as compared to Aug-22. and 5%.

AGRICULTURE LENDING OVERVIEW

Key Highlights – Agriculture
Demand for Credit has grown by 1% from last quarter and Origination Value and Volume increased by 5% and 11%
01 28% as compared to last year. 02 respectively comparing last quarter.
PSB is largest contributor in terms of o/s balance

Among all Agri products Tractor Loan and Kisan Credit Card
03 distribution followed by Private Banks. Share of PSBs 04 shown highest YoY growth trend for O/S Balance.
decreasing while that of Private Banks it is increasing.
O/S balance increased by 4% from last quarter and 14% Uttar Pradesh is Top performer for YoY O/S growth and
05 comparing last year. More than 60% balance distributed to 06 DPD change. While Telangana is state with negative O/S
Below Prime bucket. growth among top 10 states.
180+ and 360+DPD performance has increased for all

07 lenders.

MICRO – FINANCE LENDING
OVERVIEW

Key Highlights – MFI
Banks and NBFC originations value has increased by 13%

Origination volume and value increased by 3% and 16% YoY and 15% in 3 month ending period Aug-23 from 3 month
01 in 3 month ending period Aug-23. 02 ended May-23 while NBFC-MFI originations has declined
by 19% during the same period.
Average ticket size for .Industry is at 45K, NBFC has the

MFI portfolio balance grew by 32% YOY in Aug-23 while
03 highest ATS at 56K while NBFC-MFI has the lowest at 43K in
3 month ended Aug-23
04 overall trades witness increase of 17% in the same period.
Outstanding balance for NBFC and NBFC-MFI grew by 37% 30+ DPD and 90+ DPD delinquencies have improved across
05 and 40% YOY respectively in Aug-23 . 06 all major lender categories in Aug-23.
In top 10 states – Kerala and Maharashtra have seen

07 highest improvement in 90+ DPD rates while UP has the
highest YoY growth of 53% in O/S balance in Aug-23.

MSME LENDING OVERVIEW

Key Highlights – MSME Lending
PSB origination volumes increased Inquiry – Oct-23 | Origination &

Among top 10 states, highest Portfolio – Aug-23
YoY by 93%, followed by Private
origination growth seen in Uttar
Banks (5%) and NBFCs (4%) in Aug-
Pradesh - both volume & value # Y-o-Y
23. In terms of value, NBFC saw 5%
increased YoY by 55% & 150%
YoY increased, while other lenders Overall Demand 767K 41%
respectively in Aug-23.
witnessed degrowth.
Origination Volume 390K 32%

90+ delinquencies by balance
NBFC outpaced industry portfolio
improved across all lenders in last
growth and grew by 17% YoY in Aug-
one year. NBFCs and PSBs have Origination Amount 71K Cr -5%
23. Private Banks and PSBs both
3.14% and 3.28% 90+ delinquencies
grew by 15% in the same period.
rate as of Aug-23. Outstanding Balance 25L Cr 13%
Among the top 10 states, Uttar Pradesh has witnessed highest

90+ Rates 2.5% -88bps
YoY portfolio growth in Aug-23 while Delhi saw the lowest growth
at 7%. Telangana saw the highest improvement in 90+
delinquency rate.

Key Highlights – Borrower Level summary for MSME
Supply
• “Micro” and “Small” segment witnessed growth of 45% and 10% respectively in Aug-23 in terms of origination volume. In terms
of value “Micro” segment grew by 9% while “Medium” segment saw decline both in terms of volume and value.
• Sourcing to low and medium risk score bucket increased YoY by 28% and 86% respectively in Aug-23 and 30% in high-risk
score bucket.
Portfolio & Performance

• “Micro”, “Small” and “Medium” segments saw a YoY growth of 15%, 14% and 12% respectively in Aug-23.
• 90+DPD performance is improved for all Lenders and for Micro, Small, Medium Section In MSME.
• Nearly 18 % of borrower from Medium Risk bucket moved to High-Risk bucket and 14% to Low-Risk score bucket.
• For Micro, Small, Medium section in MSME maximum share in distribution of origination amount hold by Private lenders.

Negative values on the Y axis indicate a decrease in delinquency and
positive values indicate an increase in delinquency
Definitions and Notes (1/2)
Retail / Agriculture
• All credit related data is sourced from TransUnion CIBIL consumer database.
• Retail lending includes all consumer lending products.
• Agriculture lending includes Kisan Credit card, Tractor Loan and Agri-OTH products.
• The latest month values are subject to revision as additional data get reported to the TransUnion CIBIL credit bureau
• Y-o-Y refers to growth rate of a month in a year over a similar month in the previous year. As an example, Oct-22 over Oct-21.
• Approval rate is calculated as the percentage of accounts which were opened within the next 90 days of the enquiry for home loans, commercial vehicle,
construction equipment and education loans; and within the next 30 days of enquiry for all other loans. Approval Rate month is 30 – 90 days post the enquiry
month.
• NBFC+ includes Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs) and FinTechs.
• CreditVision (CV) score ranges are: Subprime = 300–680; Near prime = 681–730; Prime = 731–770; Prime plus = 771–790; Super prime = 791-900. Grouped
together, below prime consumers constitute a CV score of ≤730 and prime or above a CV score of ≥731.
• NTC (New to Credit) Consumers refers to those consumers who do not have a score at the time of loan origination for that particular month. An increase in NTC%
indicates higher financial inclusion.
• Retail Delinquency rates are measured as percentage of accounts, balances in 30, 90 to 719 days past due respectively for home loan, property loan, agriculture
loans (KCC, TL, Agri-OTH) and PSL-Gold loan; 30,90 to 359 days past due for commercial vehicle loan and construction equipment loan; and 30, 90 to 179 days
past due respectively for other products.
• Vintage Delinquency rate is measured as percentage of accounts in 30, 90 days past due to all accounts. As an example, for 30+ 6MOB of Apr23 – sourcing
month is Oct-22 and it shows % of trades that went in 30+ DPD bucket any time in the next 6 months.

Definitions and Notes (2/2)
Retail / Agriculture (contd..)
• Roll Back + Cure Rate (30-59 DPD bucket) is the percentage of balance in 30-59 DPD in the previous month, which rolled back to 1-29 DPD bucket or were
normalized to 0 DPD in the current month.
• Subprime to Above Subprime Consumers% is the percentage of consumers who were subprime (CV score 300-680) 12 months prior and migrated to above
subprime (CV score 681-900) for that particular month. Higher percentage reflects improvement.
• Above Subprime to Subprime Consumers% is the percentage of consumers who were above subprime (CV score 681-900) 12 months prior and migrated to
subprime (CV score 300-680) for that particular month. Higher percentage reflects deterioration.
MSME
• All credit related data is sourced from TransUnion CIBIL commercial database.
• The latest month values are subject to revision as additional data get reported to the TransUnion CIBIL credit bureau
• MSME lending includes all fund based lending products.
• CIBIL MSME Rank (CMR) ranges are: Low Risk = CMR 1 – CMR 3, Medium Risk = CMR 4 – CMR 6, High Risk = CMR 7 – CMR 10.
• NTC (New to Credit) Consumers refers to those consumers who do not have a rank at the time of loan origination for that particular month. An increase in NTC%
indicates higher financial inclusion.
• MSME Delinquency rates are measured as percentage of accounts, balances till 720 DPD or classified under "Sub-Std“and book includes till 720 DPD, "Standard"
and "Sub-Std A/cs"
• Borrower category classified on the basis of credit exposure aggregated at entity level <10L, Micro- 10L-1cr, Small- ≥1cr to <10cr, Medium- ≥10cr to <50cr, Large
≥50cr.
Disclaimer
This Lending overview (Report) is prepared by TransUnion CIBIL Limited (TU CIBIL). By accessing and using the Report the user
acknowledges and accepts such use is subject to this disclaimer. This Report is based on collation of information, provided by credit
institutions who are members with TU CIBIL. While TU CIBIL takes reasonable care in preparing the Report, TU CIBIL shall not be responsible
for accuracy, errors and/or omissions caused by inaccurate or inadequate information submitted to it by credit institutions. Further, TU CIBIL
does not guarantee the adequacy or completeness of the information in the Report and/or its suitability for any specific purpose nor is TU
CIBIL responsible for any access or reliance on the Report and that TU CIBIL expressly disclaims all such liability. This Report is not a
recommendation for rejection / denial or acceptance of any application, product nor any recommendation by TU CIBIL to (i) Lend or not to
Lend. (ii) enter into or not to enter into any financial transaction with the concerned individual/entity. The Information contained in the Report
does not constitute advice and the user should carry out all the necessary analysis that is prudent in its opinion before making any decisions
based on the Information contained in this Report. The use of the Report is governed by the provisions of the Credit Information Companies
(Regulation) Act, 2005, the Credit Information Companies Regulations, 2006, Credit Information Companies Rules, 2006. No part of the report
should be copied, circulated, published without prior approvals.

Thank You

© 2023 TransUnion CIBIL All Rights Reserved Home 91
85


Industry Dashboard Nov23

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Industry Dashboard Nov23

Uploaded by

Copyright:

Available Formats

Credit Landscape

1. Overall Lending Summary

2. Key Highlights - Retail

3. Retail Lending Overview

4. Product-level Overview – HL, LAP, PL, AL, CC

5. Agriculture Lending Overview

6. Product-level Overview – KCC, TL, AGRI-OTH

7. MFI Lending Overview

8. Key Highlights - MSME

9. Borrower Level Summary – Micro, Small, Medium

© 2023 TransUnion CIBIL All Rights Reserved 2

Corporate 74 11% 37% 14.6% -344bps

MSME 25 13% 13% 2.5% -88bps

Retail 95 23% 48% 2.3% -44bps

MFI 4 32% 2% 0.9% -222bps

Total 198 17%

© 2023 TransUnion CIBIL All Rights Reserved 3

© 2023 TransUnion CIBIL All Rights Reserved

Credit Demand Inquiry – Oct-23 | Origination – Aug-23

• Demand for consumption lending products increased YoY by 52% in Oct-23

Origination Volume 2.9Cr +2%

© 2023 TransUnion CIBIL All Rights Reserved 7

Portfolio Portfolio – Aug-23

• Outstanding balance of two-wheeler loan and property loan grew YoY by

© 2023 TransUnion CIBIL All Rights Reserved 15

© 2023 TransUnion CIBIL All Rights Reserved 16

© 2023 TransUnion CIBIL All Rights Reserved

• Affordable housing loans • % share of origination value • There was a decline in

Average loan size* is calculated as sanctioned amount / trades

© 2023 TransUnion CIBIL All Rights Reserved

62% of the total origination volume is towards

© 2023 TransUnion CIBIL All Rights Reserved 24

© 2023 TransUnion CIBIL All Rights Reserved

© 2023 TransUnion CIBIL All Rights Reserved 31

© 2023 TransUnion CIBIL All Rights Reserved

Origination volume of 10L+ ticket size loans increased by

© 2023 TransUnion CIBIL All Rights Reserved 38

© 2023 TransUnion CIBIL All Rights Reserved

• Credit card demand saw 6% mom • Supply in terms of volume increased by

© 2023 TransUnion CIBIL All Rights Reserved 45

© 2023 TransUnion CIBIL All Rights Reserved

PSB is largest contributor in terms of o/s balance

180+ and 360+DPD performance has increased for all

© 2023 TransUnion CIBIL All Rights Reserved 50

© 2023 TransUnion CIBIL All Rights Reserved

Banks and NBFC originations value has increased by 13%

Average ticket size for .Industry is at 45K, NBFC has the

In top 10 states – Kerala and Maharashtra have seen

© 2023 TransUnion CIBIL All Rights Reserved 65

© 2023 TransUnion CIBIL All Rights Reserved

PSB origination volumes increased Inquiry – Oct-23 | Origination &

Origination Volume 390K 32%

Among the top 10 states, Uttar Pradesh has witnessed highest

© 2023 TransUnion CIBIL All Rights Reserved

Portfolio & Performance

© 2023 TransUnion CIBIL All Rights Reserved

© 2023 TransUnion CIBIL All Rights Reserved 83

© 2023 TransUnion CIBIL All Rights Reserved 85

© 2023 TransUnion CIBIL All Rights Reserved

© 2023 TransUnion CIBIL All Rights Reserved 102

You might also like