Private banks likely to quit auto loan business

Private banks have told the government that they will not finance purchases of commercial and passenger vehicles, as absence of clear guidelines from the Reserve Bank of India prevents them from repossessing vehicles from defaulting borrowers. This was conveyed by bankers at a recent meeting with RBI and finance ministry officials in the presence of auto industry representatives. Industry estimates auto loan portfolio of all banks put together at around Rs 1,00,000 crore.