Accelerated retail lending market activity in the wake of the epidemic

- Lenders are turning to meet new demand for financing through digital media

India's retail lending market is poised for high growth with a significant increase in credit demand following the second wave of the epidemic. Inquiry volume increased by 3% between February 2021 and October 2021 as economic activity picked up. This is evidence of the rapid adaptation of government policy and market lenders. Outstanding balances and credit active consumers increased by 3% and 5% year-on-year, respectively, in August. This useful information is evidence of both government policies and the rapid adaptation of the market by lenders. In which state-owned banks have taken the lead in reviving credit growth. We are seeing an increase in corresponding supply with a complete increase in consumer demand. Lenders are rapidly moving to meet the new demand for credit through digital media, which is a new situation in the epidemic. They are managing it by adopting strategies to ensure the risk is within acceptable limits.

The first few months of the epidemic had the greatest impact on the state of the retail lending market, but as the epidemic progressed, the market fully recovered. The second wave of epidemics had a devastating effect on the entire country, but retail lending strengthened the market. Because lenders adjusted their business models and were able to work better. In addition, the need for a complete lockdown was averted by the central and state government administrations focusing on setting up micro-containment zones. As a result, economic and credit operations were less affected. While there was a decrease in Covid-12 cases, there was also an increase in lending.

The various categories of lenders during the epidemic - public, private and NBFCs also describe the comparative position of lending. Government lenders had a less negative impact in the early stages of the epidemic, as they began operations quickly after the initial lockdown. As a result, new lending growth for government banks improved rapidly. In contrast, NBFC lenders saw little improvement after the first wave of the epidemic, both due to a slowdown in supply due to delinquency and a liquidity crunch. However, recently both the NBFCs and private banks have seen a sharp improvement in their lending position. For which he is responsible for the new methods he has adopted to successfully manage the prevailing situation after the second wave.

As the global economic situation remains challenging, the post-epidemic recovery will continue to fluctuate. A clear picture of the overall state of the credit market and the knowledge of the individual consumer - will be key to making informed credit decisions. The level of improvement in demand and supply indicates that strength is maintained, but new trends need to be monitored.