Consumer credit market slowdown drags in Q2CY19; NBFCs under stress

Robust balance and originations growth in the unsecured lending categories of credit cards and personal loans continued in Q2 2019

Growth in India’s consumer credit market continued to decelerate in the second quarter ended June 2019. The loans disbursed by non-banking financial companies (NBFCs) remained under stress, with a recent portfolio shift to higher-risk unsecured credit, according to TransUnion CIBIL Industry Insights Report (IIR).

Consumer credit balances across all major credit products grew 17.1% year-on-year (YoY) in Q2 2019, compared to 23.5% YoY in Q2 2018. Growth in credit cards and personal loans significantly outpaced increases in auto loans, home loans and loans against property (LAP).

Robust balance and origination growth in the unsecured lending categories of credit cards and personal loans