The Reserve Bank of India's (RBI's) Financial Stability Report, released on Thursday, has highlighted three pressure points in nonbanking financial companies' (NBFCs') consumer loans despite the quality of consumer credit showing improvement.
"In the consumer credit segment, there are a few concerns that require close monitoring," the report said.
First, delinquency levels among borrowers with retail loans below ₹50,000 remain high.
The report pointed particularly to NBFC-fintech lenders, which have the highest share in sanctioned and outstanding amounts but also the secondhighest delinquency levels, only below those of small finance banks.
Second, vintage delinquency, which is a measure of slippage, remains relatively high in personal loans at 8.2 per cent.
This story is from the June 28, 2024 edition of Business Standard.
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This story is from the June 28, 2024 edition of Business Standard.
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