Based on data released by Macquarie
Haven't we all heard this lately? Let's see what is the data suggesting...
- Latest data (June 2024) from TransUnion CIBIL shows rising stress in unsecured segments (credit cards and personal loans), though not at alarming levels.
- The three main sources of stress are credit cards, PL and MFI.
- Bankers report net credit losses on credit cards currently around 5-6%.
- Microfinance institutions (MFI) are facing concerns; CRISIL expects credit costs to rise by 100-150 bps (from 2% to 3.5%) in FY25.
- RBI has asked banks to increase risk-weights on MFI loans from 75% to 125%.
- Secured segments (mortgages and auto loans) continue to show strong asset quality.
Looks like the stress is real, though not alarming for now. Whether this will be contained quickly is something we wait and watch..
What do you guys think ? Lemme know in comments!
