CRIF’s How India Lends Report for FY 2022, 11% growth in the debt market over March 21

Indian credit bureau CRIF High Mark today released the second edition of its How India Lends Report. The FY 2022 report highlights key insights into industry and consumer trends in the retail, microfinance and commercial lending markets over the past five years (FY18 to FY22). Apart from this, the report also talks about the impact of COVID-19 on the credit landscape.

According to the report, India’s total debt market stood at Rs 174.3 lakh crore as of March ’22, showing a growth of 11.1% as compared to March ’21. As of March ’22, commercial, retail and microfinance accounted for 49.5%, 48.9% and 1.6% respectively in the total loan portfolio. According to the report, after facing unprecedented challenges due to the Covid pandemic in FY21 and the deadly second wave in Q1 of FY22, the credit outlook in India witnessed a sharp recovery in the remaining period of FY22.

Personal loans registered a growth of 46% on value basis while 122% on volume basis from FY21 to FY22. The sector was dominated by PSBs, private banks and NBFCs. Credit cards saw a 48% increase in new card origination from FY21 to FY22 and the share of new card originations of private banks increased from 61.2% in FY21 to 71.44% in FY22.

Loans for two wheelers registered a growth of 9.2% on value basis and 2% growth in volume basis from FY21 to FY22. The sector was dominated by NBFCs and private banks, both in terms of volume and value. Auto loans grew 23% on a value generated basis, while volume growth grew by 8.5 per cent between FY21-22. This sector was also dominated by private banks, PSBs and NSBs.

Home loans witnessed a growth of 29% on value basis and 20% growth in volumes between FY21 to FY22. PSBs and HFCs dominated this sector. Business loans saw a 10% growth in origination by value between FY21 to FY22 and the sector was dominated by public sector banks, private banks and NBFCs. Loans for consumer durables saw a growth of 66% in value basis and 43% in origination on volume basis between FY21 to FY22. NBFCs dominated this sector.