CEO Rajesh Kumar highlighted the overall financial stability but pointed out room for improved financial inclusion. This comes as new account originations increased among semi-urban and rural consumers, as well as younger age groups between 18 and 30 years old. Conversely, there was a 4% decrease in new-to-credit consumers.
Small-ticket personal loans of less than Rs 50,000 have been closely monitored due to their potential as an indicator of financial stress. Accounting for approximately 25% of total origination volumes since January 2022, these loans have seen an uptick among credit-active consumers, particularly those with more than four credit products.
The report also noted a decline in balance-level serious delinquencies for credit cards and personal loans. However, early vintage delinquency trends on consumption loan products saw an increase in the fourth quarter of 2022 compared to 2019. This underscored the need for robust underwriting processes and credit risk management to maintain the health of the retail credit market.
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Source: Economy - investing.com
