mumbai sources reported that india’s largest lender State Bank of india (SBI) is extending loan repayment time for stressed automobile dealers by 15 to 30 days amid slowing car sales, a top bank official said. “Normally, the repayment period is 60 days. So, we extend it to 75 days for some dealers and to 90 days for a few others," P.K. Gupta, managing director of SBI, told reporters. The bank has an exposure of ₹11,500 crore to auto dealers.
Gupta said that currently, some automobile dealers are facing difficulty in repaying loans as per schedule. “We are talking to each dealer and had meetings with all the industry majors and with the Federation of Automobile Dealers Association (Fada). We are very actively engaged with all of them on a case-to-case basis. We have been working out solutions along with other banks for dealers facing problems on account of higher inventory," said Gupta.
He summarized the slowdown in the automobile sector as a problem of inventory piling up at dealerships amid falling car sales. Meanwhile, a statement from the bank said it collectively identified many implementable and innovative suggestions which can help to improve the bank’s performance and establish a future roadmap.
Scooters India developed five prototypes of EVs but it is yet to get regulatory clearance for them New Delhi sources stated that Strategic disinvestment of public sector Scooters India Ltd (SIL) could be deferred yet again while monetization plan of its non-core land will be carried out. While the primary reason for extending sale deadline is the muted sentiment in the auto sector, the government wants the struggling company's electric vehicle (EV) business to grow. The Ministry of Heavy Industries
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