Motown liquidity blues: Already hit by slowdown, auto sector is fighting the domino effect of IL&FS crisis too
Updated : June 25, 2019 01:57 PM IST
After the IL&FS collapse of September last year, banks and NBFCs have turned cautious towards lending to the auto sector.
The pain doesn’t end there. Mounting defaults on loans given to the auto sector, and falling real estate prices have meant that banks are asking for unprecedentedly high collateral even for inventory funding.
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