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Truck manufacturer Ashok Leyland today said it has tied up with state-run Bank of Maharashtra to provide finance to its commercial vehicle buyers and also deepen reach.
Under the Memorandum of Understanding (MoU), the Pune- headquartered bank will extend retail financing to the Hinduja Group company's customers, a statement said.
The tie-up will help Ashok Leyland extend its reach as it will give it an access to 1700 branches of Bank of Maharashtra, it added.
"This tie-up will help our customers get greater access to finance, especially in the West and South India, given Bank of Maharashtra's extensive network and reach," Ashok Leyland's chief financial officer Gopal Mahadevan said.
Interestingly, the tie-up comes at a time when most of the banks, especially those from the private sector space, are wary about their exposures to the commercial vehicle space.
According to the banks, the slump in economic growth, along with regulatory and judicials interventions like the ban on mining had a very adverse impact on the segment, which heightened incidents of asset quality stress for banks.
