NBFCs' asset quality deteriorates, delinquency rate rises by 50 bps in Q3

In the consumer credit segment, delinquencies have gone down in automobile loans by 22 bps and in personal loans by 5 bps

The shadow banking sector, which so far was struggling with asset-liability management, is now seeing its asset quality deteriorate in the consumer credit segment.

A TransUnion CIBIL report on retail credit trends shows the overall delinquency rate of non-bank finance companies (NBFCs) rose by 50 basis points (bps) from the same period a year before in the third quarter (Q3) of the 2019 calendar year (July, August, September); it rose though the first and second quarters, too. In the same period, delinquency rates for public sector and private sector banks declined by 26 bps and 9 bps, respectively. Overall delinquencies