Tata Motors signs MoU with South Indian Bank for commercial vehicle financing; stocks rise

Tata Motors MoU with South Indian Bank: Tata Motors announced on Monday, April 29, that it has signed a memorandum of understanding (MoU) with South Indian Bank to offer convenient financing solutions to its commercial vehicle customers and dealerships. South Indian Bank will offer financing across the entire commercial vehicle portfolio, and customers, the press release said, will benefit from the bank's wide network and specially curated easy repayment plans.

"The alliance represents a significant stride towards providing enhanced support to dealerships, fostering growth, minimising collateral requirements, lowering the rate of interest, and streamlining credit processing," the press release added. 

Speaking on the development, PR Seshadri, MD & CEO, South Indian Bank, said, "At South Indian Bank, we are dedicated to fostering a secure, agile, and dynamic banking environment tailored to the needs of fleet owners and dealerships. Our collaboration with Tata Motors enables us to deliver seamless vehicle financing solutions to commercial vehicle dealers and customers. We are confident that our partnership with Tata Motors will result in best-in-class financing solutions, setting a new industry benchmark for excellence."

Meanwhile, Rajesh Kaul, Vice President & Business Head, Trucks, Tata Motors Commercial Vehicles, said, "We are delighted to announce our partnership with the reputed South Indian Bank, which understands the needs of our customers. For our customers, easy access to financing solutions for their commercial vehicles is one of the key priorities for their operations. Our alliance aims to empower fleet owners and dealerships to achieve their business goals. We look forward to providing greater convenience and support to our valued customers and partners."

At close, shares of Tata Motors stood at Rs 1,000.45, up 0.11 per cent on the BSE while South Indian Bank stock ended 2.07 per cent higher at Rs 31.10.

How Tata Motors and South Indian Bank shares have fared

In a year, shares of Tata Motors have given over 108 per cent returns, while those of South Indian Bank have jumped 103 per cent.