Housing and auto loans have seen an increase in defaults over the period of two years. In other words, borrowers have failed to pay off the loan on a timely basis. Two-wheeler and gold loans have however seen a reduction in defaults.
Defaults in the PSU banks have shown an increment, which can be linked to the higher percentage of home, loans within this sector. For other non-banking financial institutions and private banks, defaults showed a downward trend even though these organizations showed a higher disbursement rate in the last few years. The retail lending of these banks also grew from around 14% to 19% since 2014.