Home loans and car loans are two important areas, which comprise majority banks’ retail loans portfolio. While, credit cards and personal loans may continue to form a small part, as banks are turning risk averse to lower their non-performing assets.
Three private sector banks Axis Bank, HDFC Bank and ICICI Bank announced their annual results last week. All of them have a big portfolio of home and car loans while a very small part of their retail loan portfolio comprises unsecured loans.
HDFC Bank posted the highest increase in home loans on a y-o-y basis at 70.6% for the quarter ended March 31, 2010.
The bank posted an increase of 26.5% y-o-y in the car loans division. The retail loan book of the bank increased by 18.1% y-o-y in the quarter ended March and 9.5% over the December quarter to Rs 72,220 crore. The credit cards division registered a decline of 2.6% y-o-y and personal loans increased merely 7.3%.
Home loans formed the biggest part of retail loans for ICICI Bank at 60% of its retail loan book trailed by car loans, which comprised 15% of the portfolio.
Personal loans and credit cards make up just 5% of retail loans.
Axis Bank saw an increase of 29.72% y-o-y as of March 31, 2010, in retail loans. From the bank’s total retail loan portfolio, home loans and car loans comprised 70.8% and 13.3%, respectively, while personal loans and credit cards made up 9.5% and 2.2%, respectively.
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