Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Barring Auto, Even Retail Loans See Spike in Bad Loans: Report

Education loans and commercial vehicle loans reported one of the biggest spikes in the proportion of NPAs, while the auto segment saw a dip in bad loans, says a report by credit information company Crif High Mark.

PTI

Updated:October 8, 2017, 11:32 PM IST
facebookTwitterskypewhatsapp
Barring Auto, Even Retail Loans See Spike in Bad Loans: Report
Image for representation (Photo: Reuters)
Loading...

Mumbai: Even as banks continue to focus on retail loans, as they keep away from the large corporates due to their poor credit quality, a study has found an uptick in non-performing assets across many sub-segments of small loans in the year to March 2017.

Education loans and commercial vehicle loans reported one of the biggest spikes in the proportion of NPAs, while the auto segment saw a dip in bad loans, says a report by credit information company Crif High Mark.

The housing loan portfolio of banks as a whole clipped at 18.27 per cent in fiscal 2017, but the gross NPAs in this segment also grew to 1.77 per cent from 1.44 per cent a year ago, says the report.

The educational loans portfolio grew 6.13 per cent but the quantum of NPAs shot up to 11 per cent from 8.09 per cent in the week before, the report said.

In case of commercial vehicle loans, the book grew by a whopping 45 per cent during the year, but was accompanied by a surge in NPAs as well, which rose to 6.32 per cent from 4.26 per cent earlier.

Similarly, the property loans portfolio grew nearly 40 per cent but this high growth was accompanied with a spike in NPAs too, which rose to 3.29 per cent from 2.63 per cent in the previous year, it said.

The only segment that showed some immunity to the broader trend of surging NPAs in the retail lending book was auto loans, where the portfolio grew by over 24 per cent but the proportion of NPAs came down marginally to 4.44 per cent from 4.56 per cent in the year-ago period, it said.

Since fiscal 2015, it can be noted that, there has been a massive slowdown in corporate credit, both due to the demand side as private investment slows down and also a reluctance from the NPA-wary bankers to lend to the segment which has contributed a bulk of the current pain.

This has forced banks to concentrate on the retail lending book where demand continues to be strong and the asset quality troubles have not been so high, so far.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 68.55 0.88
Maruti Suzuki 6,450.30 0.91
Tata Motors 129.55 1.25
HDFC Bank 2,257.45 -0.59
Axis Bank 674.25 1.71
Company Price Change %Gain
IEX 118.10 -9.71
Yes Bank 68.60 0.96
Reliance 1,225.55 1.26
Tata Motors 129.55 1.25
Maruti Suzuki 6,449.80 0.91
Top Gainers
Company Price Change %Gain
BPCL 408.55 6.34
IOC 130.10 4.58
Titan Company 1,123.40 3.43
GAIL 129.25 2.78
ICICI Bank 413.40 2.66
Company Price Change %Gain
Vedanta 149.20 2.72
ICICI Bank 413.25 2.61
ONGC 128.80 2.34
Kotak Mahindra 1,483.55 1.79
Axis Bank 674.35 1.74
Top Losers
Company Price Change %Gain
Bharti Airtel 343.05 -1.29
Dr Reddys Labs 2,731.55 -1.28
Sun Pharma 422.85 -1.16
HDFC Bank 2,257.45 -0.59
ITC 239.90 -0.35
Company Price Change %Gain
Bharti Airtel 342.75 -1.35
Sun Pharma 423.25 -1.04
HDFC Bank 2,256.25 -0.62
ITC 239.95 -0.35
HUL 1,804.80 -0.10

Live TV

Loading...
Countdown To Elections Results
To Assembly Elections 2018 Results