Credit information company Cibil has said the proportion of bad
loans in the housing segment has more than halved in the
past five years. The percentage of non-performing assets (NPAs) from the home
loans segment has dropped to 0.57 in March 2015 compared to 1.06 at the end of
2010, a Cibil report said.
The company attributed the lower delinquencies to availability of
timely credit information for lending.It can be noted that all the lenders
check the history of potential borrowers with a credit information company like
Cibil before taking a call on the loan proposal. The history also helps the
lenders in pricing the product.
It can be noted that in the face of slowing demand from the
corporate segment, all banks have been focusing strongly on the retail segment,
and within that the high value home loans have been a favourite.Even
though a longer tenure loan can result in potential asset liability mismatches,
banks are interested in this stream as the segment is considered very safe
because of low probability of NPAs.
On credit cards, which constitute a part of unsecured lending, the
Cibil report said there was a growth in new accounts to 10.8 lakh for the
January-March period, as against 8 lakh in the year-ago period.
On the asset quality in this segment, Cibil said there has been an
improvement to 1.06 per cent as of March 2015 as against 3.27 per cent at the
end of 2010.The financial capital leads in the credit card applications as
well, followed by Delhi and Bangalore, it said.
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