Gujarat tops NPAs in loans for two- wheelers, says study

Mumbai, April 8: Twowheeler loans witnessed an impressive 32 per cent growth in 2017 led by non- bank lenders, and Gujarat had the highest incidence of non- payments by borrowers.

The Thane district had the highest asset quality stress in the segment, the data said. “The loan growth is led by nonbank lenders, which indicates a good showing by the captive non- bank finance companies promoted by the auto makers,” Kalpana Pandey, MD and CEO for CRIF High Mark, told PTI.

The company, one of three major credit information firms, said the gross loan portfolio for the two- wheeler segment grew to ` 39,100 crore as of December 2017, with the NBFCs growing 37 per cent.

From a market share perspective, the proportion of NBFCs grew to 67 per cent from the 60 per cent level two years ago, it said.

Ms Pandey said indications are that the loans growth is out- pacing the one recorded earlier, pointing out that if one were to compare the first nine months of FY18 that ended in December, the growth is over 35 per cent.

Maharashtra is the biggest two- wheeler loan market, accounting for ` 579 crore of the book, and the share of the state grew by 0.55 per cent during the year.

From a NPA perspective, Gujarat has the biggest portfolio at risk, with 3 per cent of the loans overdue for 90 to 180 days, followed by Maharashtra, Karnataka and Rajasthan from an NPA perspective, its data said.

Thane has NPAs of 4.46 per cent, which is followed by Ahmedabad ( 3.84 per cent) and Surat ( 3.61 per cent), it said.

— PTI