Private banks are disproportionately affected as consumption lending declines in December 2024, slowing the development of retail credit in India.

With the most recent TransUnion CIBIL Credit Market Indicator (CMI) indicating a drop in credit supply and demand, India's retail credit market is slowing down.

According to the research, the CMI number for December 2024 was 101, down from 103 in the previous quarter, and represented one of the weakest growth rates in recent memory.

Private banks have been particularly severely struck by the slump; their CMI value has fallen to 92, the lowest level in three years.

However, with a CMI of 103 and a 22 percent year-over-year (YoY) rise, NBFCs continued to have a better position.