Chennai: 17th June, 2009: Continuing their efforts to provide a fillip to the sales of commercial vehicles, Ashok Leyland, the Hinduja Group flagship, signed a Memoranda of Understanding with Union Bank of India (UBI) in Mumbai today by which UBI will extend retail finance to Ashok Leyland’s commercial vehicle customers as well as for their dealers’ inventories.

“The market is driven by quality, cost competitiveness, transparency and customer service and this tie-up with UBI and, a similar one with Central Bank of India (CBI), signed yesterday, are both part of a drive by Ashok Leyland to fully utilize the vast networks of Public Sector Banks to service the entire value chain from wholesale to retail, for mutual benefit” said Mr. K Sridharan, Chief Financial Officer, Ashok Leyland.

Mr. S. Sridhar, Chairman & Managing Director of CBI stated that the unique aspect of the MoU signed with Ashok Leyland is that the bank will offer loans to Ashok Leyland’s customers and dealers at 100 basis points lower than its PLR (Prime Lending Rate) as against their PLR for other commercial vehicles.

Ashok Leyland has entered into similar MoUs with State Bank of India, State Bank of Patiala, Jammu & Kashmir Bank, Corporation Bank, Bank of Baroda and Punjab National Bank, seeking to capitalise on the financial strength, wide reach and commitment of PSBs to serve the Priority Sector (which includes Small Road Transport Organisations).