Private sector lender, Induslnd Bank's vehicle finance business has not been affected due to the ongoing mining woes in many parts of the country, said a top official of the bank.
Mr. S V Parthasarathy, Head of Consumer Finance, Induslnd Bank said, "We do have very less exposure in these zones. So, our business has not been impacted due to halting of mining operations. Rather, our vehicle finance business has grown higher than the industry in the recent past."
Mr. Parthasarathy also said that the bank mostly relies for commercial vehicle finances in these zones on repeat customers (who owns a vehicle and seek for another loan).
The mining activity has been disrupted due to investigations into illegal mining in many regions as Odisha, Karnataka, Goa; etc resulting in slow demand for commercial vehicle finance and also fears of defaults.
The retail loan segment of Induslnd Bank grew by 48% in the Q2 of the current fiscal, showing growth in the vehicle finance sector.