Explore Business Standard
Indian Lenders
Non-bank lenders' home loan growth will slow down in FY26 owing to aggressive play by state-run banks in the market, a report said on Wednesday. Non-bank lenders' assets under management are likely to grow by 12-13 per cent, down from 14 per cent in the preceding fiscal, despite a slew of tailwinds, the report by Crisil said. The challenges faced by non-bank lenders include "intense competition" from banks, which continue to dominate the prime home loan segment, it added. "Public sector banks have upped the ante and surpassed prime-focused housing finance companies (HFCs) last fiscal and in the first half of this fiscal," the agency's director Subha Sri Narayanan said. Narayanan said competition in pricing is evident from the strong growth in lower-interest-rate home loans of banks, as the share of the sub-9 per cent interest rate portfolio increased to over 60 per cent as of March 31, 2025, from 45 per cent last year. "Many large HFCs are facing increased customer churn through .
In what can lead to concerns from a financial inclusion agenda perspective, cautious stance by lenders led to the share of new to credit (NTC) borrowers slowing down in the June quarter, a report said on Wednesday. Only 16 per cent of loan originations in the April-June period were classified as NTC, as against 18 per cent in the year-ago period and 20 per cent in 2023, according to the report by Transunion Cibil. "An increase in NTC percentage indicates higher financial inclusion," the leading credit information bureau said in the quarterly report. The decrease has been the result of lenders getting "cautious", the Cibil report added. In what may lead to more concerns, the report said the growth in credit active consumers dropped to 9 per cent for Q1FY26 as against 15 per cent in the year-ago period. There is a "marginal stress" in repayments, the report observed, pointing to higher downgrades in the prime segment as compared to the year-ago period. Sharing data on score migrati