What is the reason ..?
The coronavirus infection in India has caused big changes in banks and bank loans.
For example, compared to retail credit services, banks tend to pay more attention to business credit and commercial credit. Only in this category can you earn high income and trade higher amounts. However, some corporate loans have become bad debt due to business shock after the epidemic. To overcome this situation, banks are paying more and more attention to retail loans.
The most important reason for this change in banks and financial institutions is market changes.
Coronavirus infection
Due to coronavirus infection, lockdown restrictions, and decline in population income, the number of commercial borrowers has fallen sharply. Companies are considering buying commercial loans because they will not be able to generate large returns if they expand their business during this period.
Coronavirus infection
Due to coronavirus infection, lockdown restrictions, and decline in population income, the number of commercial borrowers has fallen sharply. Businesses are considering buying business loans because they will not be able to generate large returns if they expand their business during this period.
Loss of income
But at the same time, due to loss of income and unemployment, more and more people obtain loans through banks and credit cards to cover their monthly expenses.
Business and service sector credit
As a result, India’s business and service sector credit has declined over the past 12 months, as has the retail loan component, namely gold loans and credit cards .
Retail or personal loan sector
Retail or personal loan sector transactions in the Indian banking system accounted for only 26% of total credit transactions. In the 12 months to July 2024, the retail loan sector grew by 11.2%. In the last 12 months it has grown by 9%.
Gold loans
Gold loans in this retail loan sector alone have increased by approximately 77.4% in the last 12 months. As a result, it increased by Rs 27,223 crore to Rs 62,412 crore. Gold loans from the country’s largest public sector bank, SBI Bank, rose 338.76%. As a result, the total amount of gold loan transactions with SBI Bank increased to Rs 21,293 crore.
Gold and Crown Loans
The increase in gold debt highlights the impact of the Crown on the income and income of the population. Although the country’s economy has grown by 20.1%, the demographic situation has not improved.
Gold imports
As Shivaji said in the movie, the rich get richer, and the poor get poorer. An example of this is the increase in India’s monthly gold imports.
Gold Jewelry Sales
On the one hand, people have no money to mortgage gold jewelry. On the other hand, the number of people buying gold jewelry is also increasing at an alarming rate. Despite several new restrictions, gold jewelry sales continue to increase.
Credit card balance
Like gold loans, in the 12 months ending July 2024, the outstanding amount of credit cards increased by 9.8%, reaching Rs 10 billion. In the 12 months ending July 2020, the outstanding credit card balance increased 9.8%.
Industrial credit
Similarly, industrial and service industries grew 1%, compared to 2.7% previously.
Home loan industry
The home loan industry alone dominates the retail loan industry, accounting for approximately 51.2% of the business. The total debt of
is 14.66 billion rupees, an increase of 11.1% from 8.9% in the first 12 months ending in July 2024.
Auto loan sector
The sector of Auto loans grew 7.3% in the 12 months to July 2024 and increased 2.7%. Percentage in the last 12 months. Likewise, agriculture and related credit grew 12.54% and 5.4%, respectively.
