Mumbai, Aug 27, 2015
India’s leading Pvt Sector bank, Federal Bank, with 71 years of banking history and a total network of 1250 branches and 1509 ATMs spread across India has entered into a tie-up arrangement with Atul Auto Ltd (AAL), a Rajkot based leading manufacturer of 3-wheelar commercial and passenger vehicles, for Dealer Financing Arrangement. The MOU was signed by Shri. Antu Joseph, General Manager (Products), Federal Bank and Shri. J.V.Adhia, President – Finance, AAL at a function held at the factory premises of AAL in Rajkot. The MOU was signed in the presence of Shri. Paul Zachariah, President – Marketing, AAL, Shri. Nipul Mehta, AGM – Retail Financing, AAL, Shri. Hardik Kalyani, Manager (Large Corporates), Federal Bank, dealers of AAL and Branch Heads of the Bank’s nearby branches.
This tie-up arrangement has been done for the benefits of all the 200 plus dealers of AAL spread across India. Under this arrangement, the Bank will finance 100% of the invoice amount with NIL margins to registered dealers of AAL for purchases made from the company. This initiative is expected to lead business association with AAL & various dealers by assisting their financing requirements at competitive interest rates. This tie-up will also enable both AAL and Federal Bank to leverage the inherent strengths of each other’s vast business networks, in particular the dominating market of AAL at Rajkot(Saurastra) cluster. Through this arrangement, Federal Bank & AAL foresees a great synergy as this alliance will open up new markets and customers for both the Bank & AAL.
Presently Federal Bank has Dealer Financing arrangements with leading automobile manufacturing brands like Tata Motors Limited, Mahindra & Mahindra Limited, Ashok Leyland Limited etc.
On the occasion, Shri. Antu Joseph, GM-Products, Federal Bank also spoke about the digital initiatives of the Bank, particularly about the recently launched FedBook Selfie, the nation’s first Mobile App for Account Opening, through which one can instantly open a savings bank account using his smartphone just by taking a selfie and scanning his Aadhaar and PAN card.
Speaking on the tie-up, Shri. J.V.Adhia, President – Finance, AAL said, “We are glad to join hands with Federal Bank. Federal Bank’s competitive products and wide reach across India will surely nurture a value addition to AAL dealers and our customers. By bringing in this arrangement for our dealers under a common platform will surely boost our sales and revenues. We will also look into further strengthening our relationships in the days to come”.