Lenders see stress building in CV space

DESPITE RISING CREDIT demand for vehicle loans after the GST rationalisation, banks and non-bank finance companies (NBFCs) are seeing an uptick in delinquencies.

- KSHIPRA PETKAR

The commercial vehicle (CV) segment, which is integral to supply chain activity, has emerged as a key area of pressure as volatile utilisation levels, fluctuating freight rates, longer receivable cycles, and higher fuel and maintenance costs have strained cash flows for transport operators.