Cash cow to Achilles' heel: The transformation of consumer lending business

Weak demand and falling income to hit the segment

Stress in the consumer lending business, which was once a cash cow for banks and non-banking financial services, only seems to be intensifying, as statements and updates by these lenders suggest. A critical highlight in RBL Bank’s media statement regarding its business updates pertains to its credit card segment. “Acquisitions have stopped during the lockdown; only digitally sourced cards being booked,” said the private bank.

It added that credit card spends had declined 40 per cent during the lockdown, with the bank expecting a slight increase in credit cost in March. In a call hosted by UBS, HDFC Bank also