Banking Industry: Retail Assets

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  • Topic: Bank, Microfinance, Banks of India
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  • Published : February 13, 2013
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RETAIL ASSETS

(USD bn)

| |FY2003 |FY2004 |FY2005 | |Outstandings |153 |217 |298 | |Disbursements |18 |22 |29 |

Source: Economic Times

• The retail loan market has grown by over 100% in the last two financial years -- from Rs 44,100 crore (USD 10 billion) in 2001-02 to Rs 100,000 crore (USD 22.8 billion) in 2003-04 -- and is expected to touch Rs 134,000 crore (USD 30.6 billion) by March 2005.

• The increase in purchasing power is driving demand across sectors, be it loans, cars, phones or consumer durables. For instance, the average value of housing loans disbursed by India’s largest home finance bank HDFC was around USD 7600 in 2002; it increased to about USD 10,400 in 2004. Similarly, 5.5 million two wheelers were sold per month throughout 2004— compared to less than 1 million a month ten years ago

|Growth of Retail Loans over the years | | | | | |USD bn | | |  |2001-02 |2002-03 |2003-04 |2004-05 |CAGR(%) | |Car Finance Market |3.6 |4.4 |5.3 |6.4 |20.2 | |Housing Finance |4.4 |7.4 |10.4 |14.6 |40 | |Personal Loans |0.6 |0.8 |1.1 |1.5 |37.3 | |Credit Card Outstanding |0.5 |0.7 |1.3 |2.5 |89 | |Two Wheeler Credit |1.1 |1.4 |1.8 |2.3 |30.8 | |Commercial Vehicle Credit |1.6 |1.9 |2.2 |2.5 |14.2 | |Consumer Durable Financing |0.4 |0.5 |0.6 |0.7 |18.2 | |Agricultural Loans |  |14.6 |18.9 |25.6 |33  | |Total |12.2 |17.1 |22.2 |28.9 |29.6 |

Source: SSKI Research

Leading players with market shares

• The leading market player in the retail finance segment is ICICI Bank with 30% market share (Source: The Asian Bank Journal)

| |Market Capitalisation as on 12-Aug | | |(USD bn) | |Bank of India |1.5 | |State Bank of India |9.5 | |Canara Bank |2.2 | |Corporation Bank |1.4 | |Union Bank |1.4...
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