Banks had also slowed down the process of auctioning collaterals keeping in mind the pandemic. Things have become normal since July, so now banks are back in action.
Jewelery loans have seen a jump of 82 per cent this year.
The condition of the economy is bad due to Corona. Due to the increase in unemployment, the financial condition of the people has worsened. In such a situation, the loans of banks are turning into bad loans very fast. It is believed that between the second quarter of the current financial year i.e. July-September, a large-scale auction will be done by the banks. In such a situation, in the coming days, there will be a large-scale auction of gold, land, house, bungalow, car, commercial space and it will be available at a low price.
According to a report published in the Times of India, banks had also slowed down the process of auctioning collaterals keeping in mind the epidemic. Things have become normal since July, so now banks are back in action. According to the report, till June 18, the personal loan amount is 27 lakh 86 thousand 519 crores. It has grown by about 12 per cent on a yearly basis. The housing loan is worth Rs 14.64 lakh crore and has grown by 9.7 per cent. Other loans are worth Rs 7.78 lakh crore and have grown by 16.6 per cent. Vehicle loan is of 2.38 lakh crore and it has increased by 11 percent. The jewelery loan is of Rs 62221 crore and has registered the highest growth rate of 81.6 per cent. The loan against the stock is 4430 crores and has increased by 23.70 per cent.
recovery process accelerated
Rakesh Jha, Chief Finance Officer of ICICI Bank said that in case of overdue in jewelery loan, the bank immediately issues auction notice to the customer. However, in view of the present time, this was not done for a large part of the months of April, May and June. The recovery process has started again from July.
auto loan default
Last month, Bajaj Finance also said that there has been a decline in auto loan repayment. The company’s managing director Rajiv Jain had said that the asset quality in auto loans is good. In such a situation, banks are expecting a good recovery. Rating agency Fitch also said that the impact of the second wave of Corona will be visible on NBFCs in the near term.
Not much impact on corporate loans
Bankers say that in the midst of the second wave of Corona, this time corporate loans did not see much bad effect. The SME segment got the benefit of the government’s ECLGS scheme. There is a one-year moratorium for this scheme which ends in the second quarter. In such a situation, maximum loan default is coming from the retail segment.
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