SBI and TVS Motor Company inks MOU to offer inventory funds for dealers

A Memorandum of Understanding (MOU) was signed between State Bank of India (SBI) and TVS Motor Company. Under this agreement SBI will be providing funds to over 600 dealers of TVS Motor Company across the country, at attractive interest rates. This will help the dealers to increase their working capital, enhance vehicle stocks and consequently increase retail sales.

The bank is initiating inventory funding program by the “Supply Chain Finance Unit” and the program is available on an electronic platform for its approved clientele having features such as online fund transfers, online repayment, real time viewing of account status etc. With this system time of transactions between the bank and its clients will get reduced.

“This association with SBI, is in line with our overall strategic business plan towards strengthening the working capital of our dealers. Their access to such funds at attractive interest rates will help them in growing their dealership and offer better retail services to the customer” said President (Marketing), TVS Motor Company, H S Goindi.

Manas Kumar Nag Chief General Manager - SME (BU), State Bank of India said,

“Through the signing of an MOU with TVS Motor Company, State Bank of India has made inroads into the two wheeler industry and this is a realization of yet another accomplishment of our overall strategy to step up loan disbursals under Supply Chain Finance and garner a significant market share.”

SBI Home/Car Loan Utsav 2010 to be held in Bangalore

State Bank of India (SBI) Bangalore circle will be organizing a three day SBI Home/Car Loan Utsav 2010 in the city, starting from February 19 to February 21. The event will be held at the bank’s head office on St. Mark’s Road.

The bank sources said at the utsav bank will offer spot loans to the borrowers at an interest rate of 8%. It added the customers can visit the stalls from 11 am to 7 pm on these three days and can choose from over 25,000 apartments. At utsav the customers can also select their favorite cars from a wide range available there.

SBI expands physical & technical network in North

The State Bank of India country’s largest public sector lender is expanding its physical and technological network by opening around 80 branches and 150 ATMs in the states of Jammu and Kashmir, Himachal Pradesh, Punjab and Haryana, and the Union Territory of Chandigarh in 2010-11.

At present, in the region the bank is having 875 branches and 32 processing centers.

Speaking on the sidelines of the launch of the off-line trading in Chandigarh Circle, Chief General Manager S K Sehgal told Business Standard the physical expansion will be mainly done in the under-banked regions, mostly in the hinterland. He added the bank has been taking up various awareness activities in the suburbs for the promotion of banking through technology that is via ‘business correspondents’ as it is more cost-effective.

He said that major physical expansion will be done in Himalaya (Leh and Drass) and this will help in catering the banking needs of defence personnel.