The country’s largest auto maker, Tata Motors has said that it has entered into an agreement with private sector lender IndusInd Bank for financing its dealers.
The agreement will allow dealers of Tata Motors access to finance from IndusInd Bank to meet their working capital requirements in addition to the existing retail finance arrangements, the auto maker said in a statement.
“Tata Motors’ commercial vehicle has a good share of business in the retail asset funding through IndusInd Bank and going forward, we want to leverage this tie up to garner even more business in the retail loan segment,” Tata Motors Vice President - Sales and Marketing (Commercial Vehicle Business Unit) R Ramakrishnan said.
Commenting on the development, IndusInd Bank Corporate and Commercial Bank Head, Suhail Chander said: “We are already amongst the largest retail financier of commercial vehicles in the country. A channel finance facility to the dealers is a natural corollary to this business.”
The statement added that the tie-up for the IndusInd Bank was a part of its strategy to develop supply chain business. The bank offers commercial, transactional and electronic banking products and services. Indusind Bank was incorporated in April 1994 by Dr. Manmohan Singh the then Union Finance Minister and is the first among the new-generation private banks in India.
The bank started its operations with a capital amount of Rs. 1,000 million out of which Rs. 600 million was donated by the Indian Residents and Rs. 400 million was raised by the Non-Resident Indians.