UTI Takes on Car Loans

UTI Bank has announced that they have entered into an agreement with Maruti Udyog Ltd. to finance car loans. The two companies will be financing jointly – with the Bank utilizing Maruti’s dealer network that they have cultivated over the years and they and the bank will jointly work together to bring in more business for the bank.

The Bank is currently located in eight different centres at sixteen dealerships, and they are planning on increasing that amount to 25 cities and 75 dealerships by the end of the month. Both companies are excited by the prospect of what can happen for both of their growth goals by working together to meet a common goal.

The Managing Director of Maruti, Mr. Jagdish Khattar, said that their company is “determined to motorize India” and to spread out into other areas, such as smaller cities. He said that they and the bank are both working to proliferate and part of that involves having a strong presence in smaller cities. He said they have the right product and the need is there, so they expect to be more than successful.

The Chairman and Managing Director of UTI said that the “launch” of their auto loans will change their portfolio considerably. They say that they could not be happier with the dealer network that they will now have access to, and that they plan on this being a beneficial relationship for both parties.

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