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Financial Services Sector Check - Commercial Vehicle Financing Recovery By Q4: Prabhudas Lilladher

Financial Services Sector Check - Commercial Vehicle Financing Recovery By Q4: Prabhudas Lilladher

Two thousand rupee banknotes. (Photographer: Dhiraj Singh/Bloomberg)
Two thousand rupee banknotes. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Our interactions with most experts in commercial vehicle financing space indicate full recovery expected by Q4 FY22.

While regulatory dispensations (moratorium, micro, small and medium enterprise restructuring, Emergency Credit Line Guarantee Scheme) masking true asset quality picture stand behind (September 2021), customer repayments will flow through Q3 FY22 onwards.

As underlying economic indicators are already showing signs of improvement with receding third wave fears, repayments can normalise by Q4 FY22 subject to consumption trends pacing up.

Heavy commercial vehicle to observe cyclical uptick over next two years. Its borrower segment is better placed than small commercial vehicles as the latter’s repayment capacity stood ruptured due to lockdown disruptions during April-May 2021.

Click on the attachment to read the full report:

Prabhudas Lilladher Financial Services Sector Update.pdf

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