SBI extends credit repayment period of automobile dealers
New Delhi, Aug 19 (KNN) The country's largest public sector lender State Bank of India (SBI) has extended the credit period of automobile dealers that are facing severe slowdown in demand resulting in inventory build-up.
Facilitating the auto dealers, the bank has extended the credit period from 60 days to 75 days in some cases or 90 days in others, according to SBI's statement.
SBI Managing Director, PK Gupta said, “We are actively engaging with the auto dealers and in case of hardship faced by them the bank is extending credit repayment period on the case to case basis."
Normally the credit period is of 60 days but the bank has extended the same to 75 days in some cases or 90 days in others, Gupta told reporters.
He stated "As a bank, we can only focus on the financing side. Our main focus is make available funds at cheaper cost for those retail customers keen on buying cars. We also fund the dealers when they buy cars from the manufacturer. However, for the aspect of revival of demand, only government can step in.”
From past few months, auto sector is facing its worst crisis in two decades and reports suggest thousands of job losses in the automobile and ancillary industry.