Financial Daily from THE HINDU group of publications
Wednesday, Aug 18, 2004
Money & Banking
Andhra Bank ties up with TVS Motor
Mr R. Dilip (left), General Manager (Sales), TVS Motor Company, with Mr T.S. Narayanasami (right), Chariman and Managing Director, and Mr R. Balakrishnan, Executive Director of Andhra Bank, at a meeting in Hyderabad on Tuesday. - A. Roy Chowdhury
Hyderabad , Aug. 17
ANDHRA BANK has entered into an alliance with TVS Motor Company, the Rs 3,000-crore automobile major, for providing easy finance to two-wheeler customers across Andhra Pradesh.
Announcing this on Tuesday, the Andhra Bank Chairman and Managing Director, Mr T.S. Narayanasami, told newspersons that the bank would offer interest rates as low as 9.25 per cent diminishing for institutional customers and 9.75 per cent for retail customers.
The bank would also offer life and health insurance free of cost to the two-wheeler customers, he added.
Andhra Bank, which has financed around 9,000 vehicles following a tie-up with Bajaj Auto so far, has fixed a target of financing around 25,000 vehicles during the current fiscal.
Two-wheelers continued to dominate the vehicular population in Andhra Pradesh and account for 66.97 per cent of the State's total vehicle population.
Stating that around three lakh two-wheelers are sold annually in Andhra Pradesh, Mr Narayanasami said that the sales was estimated at around Rs 1,200 crore.
The alliance would enable TVS to capture the market and Andhra Bank to significantly increase its two-wheeler finance portfolio, he added.
According to the Andhra Bank Executive Director, Mr R. Balakrishnan, the bank plans to enter into many more such strategic alliances with various automobile manufacturers.
He has suggested that the TVS authorities think of collaborating with Andhra Bank in its efforts to train unemployed youth through the bank's six Rural Employment Institutes (REI) across the State.
Reacting immediately to the suggestion, the TVS General Manager (Sales), Mr R. Dilip, said that the company would consider the proposal and extend technical training support at the REIs. According to the Andhra Bank General Manager, Mr A.L. Nageswara Rao, the bank and automobile company would popularise the two-wheeler finance facility through the bank's 831 branches and TVS Motor's 42 dealerships and 112 authorised services centres in the State.
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