Lending norms are changing as auto dealers go out of business, says Yes Bank official

The bumpy ride is continuing for the automobile sector and a lot of dealers are going out of business.

According to Rajan Pental, Group Head, Branch and Retail, YES Bank, the lenders need to look at the sector differently as the inventories are going up and the overall retail sales are coming down.

“In this scenario, the methodology of looking at how the sales have to happen and how the inventory levels have to go, the banks have to look at it differently. We have to look more closely and not just necessarily on the basis of the past six months' trends,” he said.