Bank hard-sell & cheaper loans drive auto financing
SECTIONS
Share
Synopsis
Auto financiers and dealers say the current buzz is led by the aggression of PSU lenders, which are offering rates lower than private financiers. However the uptick is restricted only to passenger vehicles and not two-wheelers and commercial vehicles.
TNN
(This story originally appeared in on Jan 11, 2021)Chennai: Cheaper loans, aggressive options from public sector banks and a general reluctance to use cash for cars has led to an increase in auto financing penetration in passenger vehicles from 75% at the beginning of 2020 to around 80% now.
Auto financiers and dealers say the current buzz is led by the aggression of PSU lenders, which are offering rates lower than private financiers. However the uptick is restricted only to passenger vehicles and not two-wheelers and commercial vehicles.
(Representative image)
CHENNAI: Cheaper loans, aggressive options from public sector banks and a general reluctance to use cash for cars has led to an increase in auto financing penetration in passenger vehicles from 75% at the beginning of 2020 to around 80% now.
Auto financiers and dealers say the current buzz is led by the aggression of PSU lenders, which are offering rates lower than private financiers. However the uptick is restricted only to passenger vehicles and not two-wheelers and commercial vehicles.
ICICI Bank head (secured assets) Ravi Narayanan said: “In addition to various favourable macroeconomic factors, the all-time low interest rate is the key element for increased penetration of car finance as it boosts the sale of passenger cars. Additionally, there is a significant rise in demand for used cars for personal mobility. This too is leading to more customers opting for vehicle finance.”
Retail NPAs to return to pre-Covid levels in FY22: Axis Bank
On the restructuring, which got introduced to take care of loan stress after the end of the moratorium, the bank has seen very few applications running into low triple digits
Axis Bank
Indiaâs third largest private sector lender, Axis Bank on Thursday said that the retail non-performing assets (NPAs) will be higher in the third and fourth quarter of FY21 and will go back to the pre-Covid levels only in the next fiscal year, Axis Bank said on Thursday.
Axis Bank, however, said that the asset quality situation is much better than what was feared initially and stressed that it has adequate provisions to take care of the reverses.
Retail NPAs to be higher in H2 FY21, to return to pre-Covid levels in FY22
Top Searches
This story is from December 17, 2020 Retail NPAs to be higher in H2 FY21, to return to pre-Covid levels in FY22
PTI / Updated: Dec 17, 2020, 17:23 IST
FacebookTwitterLinkedinEMail
(Representative image)
MUMBAI: Retail non-performing assets (NPAs) will be higher in the third and fourth quarter of FY21 and will go back to the pre-Covid levels only in the new fiscal year, Axis Bank said on Thursday.
The third largest private sector lender, however, said that the asset quality situation is much better than what was feared initially and stressed that it has adequate provisions to take care of the reverses.
Retail NPAs to be higher in H2FY21, to return to pre-COVID levels in FY22: Axis Bank
Retail NPAs to be higher in H2FY21, to return to pre-COVID levels in FY22: Axis Bank
The bank has been focusing largely on the secured assets front when it comes to new loans and the business has gone back to pre-COVID levels, while the riskier unsecured loans like the ones are credit cards is at 60-70 per cent of the pre-COVID levels. December 17, 2020 5:29:54 pm
A pedestrian wearing a protective mask walks past an Axis Bank Ltd. branch on a near-empty street in Mumbai, India, on Monday, May 4, 2020. (Photographer: Dhiraj Singh/Bloomberg)