Interest rates at the lowest they have been in decades, combined with a build-up of precautionary savings across certain segments of the population, have spurred demand for home loans, shows data from credit bureau TransUnion CIBIL. This pick-up led the improvement in retail credit inquiries, even though lender approvals remain below previous levels.
Asset quality trends and efficiency in collecting overdue loans, which CIBIL documents only until August, capture only a partial picture as the RBI-approved moratorium ended in August and was followed by a one-time restructuring scheme.
Inquiries Are Rebounding...
The CIBIL data shows that inquires for retail credit in November were only 7.3% below a year ago. Demand has rebounded sharply from May when retail credit inquiries had fallen 72% compared to a year ago. Since then, they have steadily rebounded the CIBIL data shows.
Public sector banks saw the biggest rebound in inquiries in the unlock phase, as they were early in recommencing operations than their peers, CIBIL said. Private banks have seen growth return in November but NBFCs have seen the slowest resumption in inquiry volumes among all lender categories, the credit bureau said.