6th September, 2016 – Equifax Inc. (NYSE:EFX), a global information solutions company, today announced the second edition of the India Consumer Credit Trends Report, a quarterly report leveraging the company’s consumer credit database to provide insights into consumer financial behavior across the country. Equifax’s India Consumer Credit Trends report, reveals population-level debt and lending insights, including originations, balances, number of loans, and delinquencies.
Overall lending remained stable during the first quarter of 2016 with a 6.5% growth in the portfolio receivables quarter on quarter. The growth came as a result of an increased origination of secured mortgage, auto and gold loans. Overall 90+ delinquency rates as of first quarter 2016 grew to 1.60%; an 8bps increase from the previous quarter largely as a result of unsecured loan delinquencies. Home loans and personal loans were the best performing asset products with 90+ delinquency rates of 0.49% and 0.47% respectively.
For private banks, mortgage, auto and personal loans represented the bulk of new loans. Personal loans saw an increase in originations driven primarily by growth at private banks and non-banking financial companies (NBFCs).
Public Sector Banks (PSUs) dominated the financial lending space accounting for half of the country’s total receivables, with mortgage and agri loans accounting for 52%. The 90+ delinquency rate for PSU banks was 2.16%, an increase from last quarter contributed primarily by business, auto and educational loans
The top 6 states viz Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Andhra Pradesh and Telangana contributed more than 50% of the loan originations in the past 12 months as well as total period-end receivables in the country.
According to Manish Sinha, India Country Leader, Equifax “The last quarter of the financial year is an important quarter for all lenders and as expected, has resulted in a growth in receivables. The second edition of the Credit trends report highlights that loan portfolios have grown 6.5% in Jan-Mar16 (vs the previous quarter). The past year has seen a lot of commentary on asset and lending quality, so it is no surprise that growth comes mostly from secured products like mortgage, auto and gold loans. Finally, it is noteworthy that delinquency in this period has increased 8 bps to 1.60%, despite the inflow of the new vintage loans.”
Equifax powers the financial future of individuals and organizations around the world. Using the combined strength of unique trusted data, technology and innovative analytics, Equifax has grown from a consumer credit company into a leading provider of insights and knowledge that helps its customers make informed decisions. The company organizes, assimilates and analyzes data on more than 800 million consumers and more than 88 million businesses worldwide, and its databases include employee data contributed from more than 5,000 employers.
Headquartered in Atlanta, Ga., Equifax operates or has investments in 25 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor’s (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 9,200 employees worldwide.
Some noteworthy achievements for the company include: Ranked 13 on the American Banker FinTech Forward list (2015); named a Top Technology Provider on the FinTech 100 list (2004-2015); named an InformationWeek Elite 100 Winner (2014-2015); named a Top Workplace by Atlanta Journal Constitution (2013-2015); named one of Fortune’s World’s Most Admired Companies (2011-2015); named one of Forbes’ World’s 100 Most Innovative Companies (2015). For more information, visit www.equifax.com