According to the reports in the recent few years the banks reduced their lending towards the Commercial vehicle segment. It was expected that the lending in this sector might lead to decline in the credit quality. But now with the growing economy and improving conditions the demand for the these is loans is increasing so the banks have decided to finance in the commercial vehicle segment.
Managing director of the IndusInd bank told that in the month of September an increase in the vehicle financing was noticed. CV loans accounted for 16 per cent of IndusInd Bank's advances at the end of July-September period.Banks reported that they are finding improvement in the CV loans. We expect the CV segment to perform well in coming quarter. For the past few years the CV loans were in bad condition.