Bank of Baroda has signed a ‘preferred financier’ memorandum of understanding (MoU) with Maruti Suzuki India. The MoU allows Bank of Baroda to provide more comprehensive financing opportunities for both dealers and consumers. This seems like a soft solution to some of the financial woes the dealers are currently facing with rising inventory and dwindling sales.​

The document was signed between P.S. Jayakumar, MD & CEO, Bank of Baroda and Shashank Srivastava, executive director, marketing and sales, Maruti Suzuki India. 

This partnership for Bank of Baroda with a Maruti Suzuki allows it to provide more comprehensive financing opportunities for both dealers and consumers, further enhancing its presence across the network of Maruti Suzuki India. The Dealer financing will be done as per the bank’s existing product program of 'Supply Chain Finance'.

Sharing his thoughts on the alliance, P S Jayakumar, MD & CEO, Bank of Baroda said, “We are delighted to be associated with India’s largest passenger vehicle manufacturer- Maruti Suzuki India. Given the huge potential available in the auto loan/commercial finance segment, we are hopeful that this agreement strengthens our presence in these segments and increases market penetration for Maruti Suzuki in India.” 

Commenting on the alliance, Shashank Srivastava, executive director, marketing and sales, Maruti Suzuki India said, “We are confident that this collaboration with India’s one of the largest public sector bank will offer new-age banking and finance solutions for both our customers and dealer partners. At Maruti Suzuki, we always strive to deliver best customer experience and this new collaboration will help us in ensuring the same. I’m sure all our customers and dealer partners will take benefit of this new alliance.”

Also read: India's auto retail market headed for a year of sales slowdown