Commercial loan origination volumes decline 4.3 per cent in FY22; avg ticket sizes jump: Report

Commercial lending includes a credit of over Rs 10 lakh to any commercial entity and is further classified as micro, small, medium or large exposures.
Image used for representational purpose only.
Image used for representational purpose only.

MUMBAI: Commercial lending origination volumes declined by 4.3 per cent to 22.2 lakh loans in the COVID-affected FY22, a credit information company said on Wednesday.

If one has to look at the originations by value, there was a 73 per cent jump to Rs 66.49 lakh crore, while the portfolio outstanding at the end of the fiscal grew 8.5 per cent, the report by Crif High Mark said.

The average ticket sizes for commercial loans across lenders witnessed a huge spike during the year, with state-owned lenders reporting the number at Rs 3.34 crore in FY22 against Rs 1.65 crore, and that of private banks stood at Rs 3.30 crore compared to Rs 1.85 crore.

Commercial lending includes a credit of over Rs 10 lakh to any commercial entity and is further classified as micro, small, medium or large exposures.

From a loan stress perspective, there was a decline in the portfolio at risk of loans unpaid for over 90 days in the commercial lending segment, the report said.

The stress levels across loan segments, gauged through the portfolio at risk which is unpaid, showed an improvement during the fiscal, it added.

It can be noted that this is in line with a major shift in banks' asset quality reported by the RBI and other agencies.

In the home loan segment, there was a 13.3 per cent increase in the portfolio outstanding to Rs 25.5 lakh crore in FY22, with the share of ones unpaid for between 91-180 days halving to 0.3 per cent.

The closely watched segment witnessed a 29 per cent growth in originations by value to Rs 7.35 lakh crore, while by volumes, it was up 20 per cent to 24 lakh loans.

The housing finance sector was able to post the growth despite a 50 per cent drop in originations by value in the COVID-19 second wave affected the first quarter of the year, the report said, adding that there was a recovery in originations from the second quarter onwards.

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