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State Bank of India extends repayment period of auto dealers by 15-30 days

The auto dealers owe more than Rs 11,000 crore to the bank

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State-owned bank State Bank of India (SBI) has decided to extend the repayment timelines for the automobile dealers by 15 to 30 days, give them more space and time to repay their loan without a penalty. This decision has come up amid slowing car sales continuously for the last nine months.

P.K. Gupta, Managing Director (retail and digital banking), SBI said, "Normally, the repayment period is 60 days. So we extend it for 75 days for some dealers and to 90 days for a few others."

The auto dealers owe more than Rs 11,000 crore to the bank. 

He also said that the bank is aware that some of the auto dealers are facing difficulty in repaying existing loans as per due date, hence the bank is engaging the industry majors and with Federation of Automobile Dealers Associations (FADA). 

He further said: "We are very actively engaged with all of them on a case-to-case basis. We have been working out solutions along with other banks for dealers facing problems on account inventory."

SBI on Sunday, said that it conducted meetings and sessions with officials starting brank level to outline a roadmap for reviving credit. This meeting came after the Finance Ministry had asked the public sector banks to conduct a consultation process with branch-level officers to seek suggestions for streamlining the banking sector. 

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