The size of the total lending market in India has grown to Rs 174 lakh crore at the end of March, with retail loans contributing 48.9%. The share of commercial loans was at 49.5% and the balance 1.6% was contributed by microfinance, according to a study by credit bureau CRIF High Mark.
Retail loans grew 13.6% in FY22 to Rs 85.2 lakh crore, outpacing both commercial loan growth and microfinance loan expansion. Commercial loans grew 8.6% to Rs 86.3 lakh crore. Microfinance grew by 10% to Rs 2.9 lakh crore.
Overall, FY22 witnessed 11% growth in new loan originations across retail, microfinance and commercial loans.
The study captured the lending by both banks and non-banking finance companies.
“India’s credit sector maintained an accelerated growth trajectory despite unprecedented challenges arising due to the second wave of COVID-19. This resurgence in the credit landscape signals economic recovery and is extremely encouraging,” said Sanjeet Dawar, managing director at CRIF High Mark.
A bulk of the retail loans in value terms comes from the home loan segment with its portfolio outstanding at Rs 25.5 lakh crore contributing nearly 30% of the retail lending universe.
By count of active loans, credit cards dominated the market with a share of 17.2%, followed by personal loans (14.1%), agri loans (11.8%), consumer durable loans (11.3%) and gold loans (11%). The count of home loans was just about 3.3% while the auto loans constituted the least share of 2.9%.
The study showed that public sector banks enjoyed the highest market shares in both home loan (41%) and personal loan (42.3%) segments while private banks had 19.6% and 37% share respectively. Housing finance companies with 35.8% market share were second in home loan outstanding after public sector banks.
Public sector banks (35.6%) and their private peers (37.4%) were almost neck to neck in auto loan market share. Two-wheeler loan segment was however largely dominated by non-banking finance companies which enjoyed 64.4% market share followed by private banks’ 30.1%, the report called `How India Lends’ showed.