IDFC FIRST Bank Risk Management & Asset Quality
Market Opportunity (Retail, Rural & SME Loans)
Section 5: Market Opportunity
Personal credit in India has grown by 15-20% in the last 5 years. Personal Credit to GDP in India is only 19% of GDP which has
significant room for growth going forward. (Personal credit refers to credit availed for personal use like home loans, vehicle loans,
personal loans etc.) Personal Credit, along with rural finance and small business credit, is Rs. 86 trillion ($1.1 T), is simulated to grow
15X in 20 years even if simulated at modest rate of growth of 16% for five years, 15% for next five years, 14% for next five years, and
13% for the final five years.
Simulated Growth of Bank Credit to Personal and Small Business Segment (Rs. Lac crore)
15x growth (20 Years)
13% CAGR
1,288.8
86.0
16% CAGR
15% CAGR
14% CAGR
FY23 FY24 FY25 FY26
FY27 FY28 FY29 FY30 FY31 FY32
FY33
FY34 FY35 FY36 FY37 FY38
FY39
FY40 FY41 FY42 FY43
Source: RBI data on sectoral credit deployment, Internal Estimate, CIBIL Bureau data
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