The current economic situation was
already a matter of concern for the banking sector, a report from AC
Nielsen has confirmed the reduced confidence of the consumers in the
economy and banking sector, which migh affect the demand for home loans for the current fiscal.
This came as a result of uncertain
econmic conditions clubbed with inflationary pressure, sluggish GDP
numbers and towering fuel costs. This is for the first time in over 2
years that the country has seen a dip in consumer confidence.
Over the last 5 quarters, the demand
for home loan has remained sluggish, the home loans grew by 12% in
FY11-12 against 17% growth in FY10-11. There are similar concerns
about growth of personal loans.
Due to uncertainties in job prospects,
the consumer is getting more wary of his/her spending on clothes,
electricity, gas and saving more for uncertain times ahead. However India is still the second most confident nation on consumer confidence index.
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