The bank has seized close to 300 cars for payment defaults, which reflect lower earnings by drivers amid a surge in cab numbers and a decline in incentives paid out by the aggregators.
SBI , which has total exposure of `120 crore toward cabs, had seen considerable stress in these accounts, people aware of the matter said.
“We have stopped financing vehicles under Ola and Uber (select geographies) as have we decided to take a cautious approach,” said a top SBI executive. “Suspension is temporary because we want to watch the situation for some time. There have been certain changes in regulations in many geographies and it’s prudent to see how it evolves before financing these vehicles again.”
There was no response to queries from Ola and Uber.
While suspension was implemented in larger markets like Mumbai , Delhi and Bengaluru, sources said a few disbursals continued in markets like West Bengal, Odisha and […]