Mumbai: Public sector banks have captured 50 per cent of all home loan originations by value in September, moving ahead of private lenders in a market that continues to expand steadily, according to data from Crif High Mark.
The report shows that nearly 40 per cent of new home loans fall in the bracket above Rs 75 lakh, even as the total number of active loans has increased only marginally by 3.3 per cent to 2.29 crore. This indicates a rise in average ticket size across the housing finance segment.
The overall home loan portfolio, which remains the largest component of retail credit, grew 11.1 per cent year-on-year and 2.1 per cent quarter-on-quarter to reach Rs 42.1 lakh crore by the end of September.
Consumption credit also remained strong, with a 15.3 per cent increase taking the total to Rs 109.6 lakh crore. Growth in the gold loan segment has driven much of this expansion, the report noted.
“PSU banks have expanded their market leadership in both value and reach, and regulatory discipline is encouraging more responsible and broad-based financial inclusion across geographies and population segments,” the company’s chairman Sachin Seth said.
However, the consumer durables segment posted slower growth at 10.2 per cent year-on-year due to “subdued demand and seasonal factors”, according to the report.
Asset quality metrics showed a slight improvement, with consumption loans overdue for 31-180 days declining to 3 per cent in September from 3.1 per cent in June and 3.3 per cent in the same period last year.
BI Bureau
