Key Points
, where the interest rates are highest, larger loans are by more vulnerable borrowers...
According to the study, over the past decade, there has been a big shift in the sectoral composition of bank credit due to growth in personal loans or retail credit in the overall credit portfolio..
As of June 2023, personal loans constituted the single largest category of bank credit, accounting for 49% of total borrower accounts, and 30% of the outstanding non-food credit, it said..
While the report did not specify the segments, it said that credit cards and vehicle loan portfolios did record a moderate but statistically significant rise in stress...
In the case of credit cards, per borrower credit outstanding is higher for the below prime borrowers, suggesting a higher flow of credit to relatively riskier borrowers, the study said...
