PSBs may ease credit access to automobile dealers to boost sales

In a bid to arrest the slump in the automotive and ancillary sector and boost sales of motor vehicles, the Narendra Modi government could instruct state-owned banks to ease credit conditions and repayment thresholds to automobile dealerships.  Banks looking to reduce their exposure to the troubled industry have been demanding 25 per cent collateral for inventory financing. The decision by banks followed a few cases of defaults by automobile dealers. This proposal, along with other measures to boost specific sectors and the overall economy, was discussed in meetings on Independence D.....

Key stories on business-standard.com are available to premium subscribers only.

Already a premium subscriber?

Subscribe to get an across device (Website, Mobile Web, Iphone, Ipad, and Android Phone applications) access to Premium content, Breaking News alerts, Industry Newsletters, Stock and Corporate news alerts, access to Archives and a lot more.