Private Banks have increased their share of the commercial vehicle business since its growth remains sluggish as the economy has lost steam. Finance companies have lost market share during the pandemic but small-ticket commercial vehicles loans is gradually increasing.
A report by credit Bureau CRIF High Mark has revealed that the commercial vehicle portfolio of lenders was Rs 3,29,000 crore as of September 2021 end. This shows a growth of 1.9% from Rs 3, 22,900 crore from the previous year. The loans have become smaller as the number of borrowers has risen nearly 11% to 66 lakh.
Considering the overall commercial vehicle segment, the share of banks in loan origination in terms of value has increased from 35.3 percent for the year ended March 2021 to 42.5 percent during the first half of the current fiscal. Captive NBFCs of manufacturers have witnessed their share slip to 29.5%, while NBFCs saw their share slip from 26.7% to 25.7%.
