South Indian Bank and Mahindra & Mahindra Partner for Dealer Finance

South Indian Bank and Mahindra & Mahindra join hands for dealer finance

South Indian Bank, one of the leading private sector banks in India, has entered into a strategic partnership with Mahindra & Mahindra, the country’s largest utility vehicle manufacturer, to offer customized financing solutions to the latter’s dealers across the nation.

The MoU was signed by Biji S.S, Senior General Manager and Group Business Head, South Indian Bank, and Baneswar Banerjee, Vice President - Sales, Automotive Division, Mahindra & Mahindra, in the presence of senior officials from both organizations.

The partnership aims to provide easy and hassle-free inventory funding to the dealers of Mahindra & Mahindra’s automobiles, including passenger vehicles, commercial vehicles, electric vehicles, and farm equipment. The dealers will benefit from competitive interest rates, flexible repayment options, quick processing, and minimal documentation.

Biji S.S said, “We are delighted to partner with Mahindra & Mahindra, a pioneer and leader in the Indian automobile industry. This alliance augments our focus on dealer finance business and we are confident that through our diverse finance solutions, we will be able to provide their dealers with inclusive finance options. Our partnership will provide the dealers more options in funding their vehicle inventory.”

Baneswar Banerjee said, “We are happy to associate with South Indian Bank, a reputed and trusted bank with a strong presence in the southern region. Our association with South Indian Bank will provide our dealer network with suitable inventory financing solutions. We look forward to working closely with South Indian Bank to further improve our value chain delivery equations and enhance our services.”

The partnership is expected to boost the sales of Mahindra & Mahindra’s automobiles in the country, especially in the rural and semi-urban markets where South Indian Bank has a strong network of branches. The bank has been expanding its dealer finance portfolio in recent years and has tie-ups with several leading automobile manufacturers.

The announcement of the MoU also had a positive impact on the share prices of both companies. South Indian Bank’s share price rose by 7% on Friday, while Mahindra & Mahindra’s share price increased by 4%. The market experts believe that the partnership will create a win-win situation for both parties and enhance their growth prospects in the long run.