Delays seen in repayment of commercial vehicle loans: Crisil

For the first time in three years signs of weakness are emerging in the performance of commercial vehicle (CV) loans, according to Crisil Ratings.

Delinquencies in CV loans are increasing, with monthly collection ratio (MCR) of Crisil-rated CV pools dropping below 95 per cent for the first time since 2009, as per the portfolio analysis of non-banking financial companies (NBFCs).

This decline in collection efficiency indicates that borrowers are increasingly delaying repayments. There is, therefore, a likelihood of increase in non-performing assets (NPAs) over the next few quarters.

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