Attributing the reason for slowdown in consumer finance to high interest rates, ICICI Bank CEO K V Kamath on Monday said its affordbility is becoming a challenge. Availability of (consumer) finance is there today but affordbility is getting to be a challenge, Kamath said while talking about outlook on consumer finance business. Bulk of the business in the segment comes from auto loan and advances for white goods.
Consumer durable sector witnessed a sluggish growth during 2007-08. As per the latest data, the consumer durables sector showed a decline of 2.1 per cent in March 2008 from 3.8 per cent in the same month last year.According to analysts, one of the factors for the poor performance of the sector has been high interest rates, along with the cyclical nature of the business.In April, ICICI Bank jacked up auto loans in between 50-75 basis points for certain segments of auto loans.Auto loan prior to the hike was in the range of 13.5-14 per cent which have gone up by 0.75 per cent during the month.
Consumer durable sector witnessed a sluggish growth during 2007-08. As per the latest data, the consumer durables sector showed a decline of 2.1 per cent in March 2008 from 3.8 per cent in the same month last year.According to analysts, one of the factors for the poor performance of the sector has been high interest rates, along with the cyclical nature of the business.In April, ICICI Bank jacked up auto loans in between 50-75 basis points for certain segments of auto loans.Auto loan prior to the hike was in the range of 13.5-14 per cent which have gone up by 0.75 per cent during the month.
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