MUMBAI : Bounce rates or defaults in paying equated monthly instalments have not worsened so far in January as most borrowers are paying their dues on time, banks and non-bank lenders said.
The trend indicates borrowers’ incomes have been insulated so far from the third wave of the pandemic, unlike what was seen in the first two.
Lenders, however, believe that the full effect of this wave is yet to unfold. Bankers said they are yet to see any sizable dip in collection efficiency and are hopeful that the third wave will ebb sooner than expected.
Bounce rate takes into account recurring payments where borrowers have monthly auto-debit mandates with their banks. Two lenders—HDFC Bank and Bajaj Finance—have recently declared their December quarter earnings, and their managements have pointed to stable bounce rates in January.