As economic activity remained more or less unaffected through the COVID-19 second wave and lenders became tech-savvy, outstanding balances and credit active consumers grew 8 and 7 per cent, respectively, between February and October this year, as per a report.
Credit inquiries also jumped 54 per cent during the said period, the report added.
The largest credit bureau Transunion Cibil on Thursday said the credit market is back on a growth trajectory, with the resurgence in credit demand and supply.
Citing data from its maiden credit market indicator (CMI) launched today, the agency said the latest indicator reads 87 in August, up from 78 in February 2021.
The CMI provides reliable and contemporary health of retail lending, highlighting the state of the retail credit.
While public sector banks have led the credit resurgence, private sector banks and non-banking lenders are also witnessing strong demand recovery now, the report said.
As a result, the outstanding balances and credit active consumers grew year-on-year by 8 per cent and 7 per cent, respectively, while credit inquiry volumes jumped by 54 per cent, during February- October 2021, and the same touched a record high in the first week of November 2021 backed by festive demand, it added.
Credit inquiry volumes had increased by 20 per cent between February and August 2021, against a decline of 31 per cent during the same months in 2020.
These insights are a testament to the speed at which lenders, led by public sector ones, have adapted to the shift in new credit originations via digital channels, said Rajesh Kumar, managing director and chief executive at Transunion Cibil.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)