Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

After Biscuit & Auto Industry, Economic Slowdown May 'Adversely' Impact Truck Operators Revenue

GDP growth slipped to a six-year low of 5 per cent for the June quarter, leading many to worry about what will be sectoral impact of such a development.

PTI

Updated:September 5, 2019, 3:26 PM IST
facebookTwitterskypewhatsapp
After Biscuit & Auto Industry, Economic Slowdown May 'Adversely' Impact Truck Operators Revenue
Representative image/Reuters
Loading...

Mumbai: The ongoing economic growth slowdown will have an adverse impact on trucking fleet operators' revenues and ability to repay loans, global ratings agency Moody's Investors Service warned on Thursday.

The losses to asset-backed securities (ABS) will also rise as the economy slows, it said. GDP growth slipped to a six-year low of 5 per cent for the June quarter, leading many to worry about what will be sectoral impact of such a development.

"Soft consumption and weak services activity in India will constrain demand for freight transport by commercial vehicle operators, in turn, reducing operators' revenue and weakening their ability to repay loans," its analyst Dipanshu Rustagi said.

The agency said that most Indian auto ABS are backed by commercial vehicle loans, and past episodes of slowing economic growth such as during the 2012-14 financial years have witnessed an increase in auto ABS loss rates.

It made it clear that ABS delinquencies have not "increased significantly" in the present slowdown. However, slowdown, the performance of commercial vehicle loans backing ABS deals could deteriorate significantly if "economic conditions remain subdued for a prolonged period," Rastogi said.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
HDFC 2,049.30 3.78
Maruti Suzuki 6,591.95 10.39
ICICI Bank 417.50 7.99
HDFC Bank 1,199.60 8.95
Reliance 1,254.35 6.39
Company Price Change %Gain
Astral Poly Tec 1,213.70 5.25
HDFC 2,052.10 3.92
SBI Life Insura 815.85 1.73
Zee Entertain 301.10 -2.49
Maruti Suzuki 6,585.25 10.89
Top Gainers
Company Price Change %Gain
Eicher Motors 17,860.20 13.38
Hero Motocorp 2,862.90 13.06
IndusInd Bank 1,419.60 10.71
UltraTechCement 4,269.65 10.43
Maruti Suzuki 6,591.95 10.39
Company Price Change %Gain
Hero Motocorp 2,866.50 13.19
Maruti Suzuki 6,585.25 10.89
IndusInd Bank 1,419.60 10.74
Bajaj Finance 3,705.60 10.19
SBI 301.70 10.09
Top Losers
Company Price Change %Gain
Power Grid Corp 196.20 -2.46
Zee Entertain 301.40 -2.41
Infosys 805.00 -1.91
TCS 2,065.45 -1.74
NTPC 119.85 -1.52
Company Price Change %Gain
Power Grid Corp 196.35 -2.39
Infosys 805.10 -1.94
TCS 2,065.60 -1.74
NTPC 119.90 -1.52

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results