PSU banks aiming at vehicle loan growth
On one side there is going a economic slowdown throughout the nation and on other side the major public sector banks of the nation are aiming at loan growths by 20-25 percent and that too only in this financial year. Its mainly happening because the rivals of these public sector banks that is private sector banks are getting very optional in lending the loans to the auto sector as they are expecting much more lower growth through-out.
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Impact of economic slowdown can be easily seen on every field of the nation. Even the national banks do not lags behind. Most of the Private sector banks do not find it important to to lend loans to auto sector and are evenly expecting a very lower growth this fiscal year. The reason for their lower growth can also be attributed to the Public sector banks of the nation which are charging very low interests on car finances in comparison to these Private sector banks. Just comparing the lending rates of loans of these two groups of banks we find that public sector banks lend loans with interest ranging from 11.75 to 13.75 percent while looking at the private sector banks they are lending the vey same loans with the interest rates of 15 percent.
Here a official from SBI feels that the bank is growing with a rate faster than the market growth rate. SBI has come across with a growth of 30% in auto loan sector, with a net outcome of Rs.8,029 crore as compared to Rs.6,153 of the previous year till September 30.
Union Bank of India also finds that they have made a net growth of 25 % this year in the field of auto loan. And according to a bank official UBI have a complete control over the customers profile. With a portfolio of Rs. 1,000 crore this bank also is one another sucessful PSU bank.
On the other hand private baks like ICICI have not been able to recieve much growth rate. According to this private sector bank the market demand in the four-wheeler segment is continuely going down. According to thwe company officials the actual sales to purchase ratio is coming down continuely. The situation even seems that their may come a degrowth in the bank.
Even listening to the auto maker Maruti-Suzuki we find that ICICI and HDFC are the two two banks of the private sector of the nation which once ruled the auto sector loan providing market. Their scale graph was never so much down, but from the starting of this year this graph is significantly going down.
