Two-wheeler segment grows as NBFCs capture larger market share

Two wheeler finance loan book in December 2017 grew 32% year-on-year over December 2016 and 60% over March 2016. Non-banking finance companies (NBFCs) continued to dominate the portfolio in FY 17-18 as their market share grew to 67% from 60% in FY 2015-16. Private banks saw a drop in market share to 33% from 38% in FY 15-16.

The two-wheeler portfolio saw a disbursal of Rs 256 billion during this fiscal year.

Disbursements grew by 31% over two quarters for FY 17-18.  
      

While NBFCs have seen higher growth, private bank portfolio had better asset quality with lower NPA ratio.

The industry saw a NPA ratio of 2.02%, with 2.45 % and 1.07 for NBFCs and pvt banks.