A recent TransUnion CIBIL report lucidly visualises the ongoing pain in the financial sector. Delinquencies worsen in consumption-based loan products, namely, personal loans, credit cards and consumer durable loans. While vintage delinquencies have largely improved, it is not so in the case of consumer durable loans and two-wheeler loans, signalling stress emerging there. As a result, financial institutions scaled back on origination of these loans. Originations to new-to-credit (NTC) and sub-prime borrowers too have dropped.
