Nearly two-thirds of automotive industry loan requirements are met by foreign private lenders:


Nearly two-thirds of auto industry loan requirements are met by foreign private lenders: Report | Mike

Nearly two-thirds of the auto industry’s lending needs are met by the country’s private and foreign lenders, according to a report released Tuesday.

Referring to data dating back to June 2020, Crif High Mark, a credit reporting firm, said public lenders led in terms of loan volumes, accounting for almost 35% of loans.

In terms of the value of loans granted, private sector lenders hold the largest share with 41.4%, foreign banks 24.4% and public lenders came third with 19.6%, according to the prepared report. by the company in association with said Sidbi.

The auto industry was facing problems due to falling economic growth and regulatory changes before the pandemic itself.

From an asset quality perspective, the ratio of non-performing assets (NPA) to loans taken by the automotive and automotive components industry fell to 9.59% in June 2020, according to the report.

It can be noted that from March 2020, the RBI had granted a six-month moratorium on loan repayments and allowed lenders not to recognize non-payments as NPAs. After the end of the stay period, the Supreme Court had ordered a moratorium on the recognition of the loans.

Of the total credit used by the automotive and automotive components sector, term loans account for 48%, followed by working capital loans at 33% and other funded credit facilities at 18%, it said. -he indicates.

As of June 2020, term loan NPAs stood at 14.7%, while working capital loans were at 5.2%, according to the report.

There were a total of 1.29 lakh borrowers in the sector in June, he said, adding that in terms of the number of loans issued, 91 percent were from micro, small and medium enterprises.

Overall industry credit outstanding rose by 1% in the June quarter to Rs 1.13 lakh crore, or 12% of industry revenue of Rs 9.4 lakh crore.

The 8 major automotive clusters together constitute 80% of the credit portfolio in June 2020, he said.

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