Real Estate Advice

Retail Lending in a Post Covid World: Winners and Laggards

May 15, 2022

Retail Lending in a Post Covid World
Retail Credit continues to gain prominence in India, rising from 20% of overall systemic credit in FY15 to c.30% now, driven by strong customer demand, lower NPAs and better margins compared to industrial/corporate lending.

In FY21, retail credit clocked slower growth as private consumption plunged on account of the pandemic and its corresponding impact on economic activity. However, between FY21 and FY24, retail credit is expected to make a strong comeback and grow at 13-15%.

Within the retail lending space, NBFCs (including HFCs) have competed strongly against Banks – across economic cycles. NBFCs have a market share of c. 40% in Retail Credit as compared to 20% market share in overall credit.

Spotlight

LNR Property LLC

LNR is a commercial real estate company and one of the first companies to enter the CMBS industry in the early 1990's. LNR has created one of the nation's leading and most respected franchises in the CMBS market.

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Spotlight

LNR Property LLC

LNR is a commercial real estate company and one of the first companies to enter the CMBS industry in the early 1990's. LNR has created one of the nation's leading and most respected franchises in the CMBS market.

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