Jammu & Kashmir Bank today signed a Memorandum of Understanding (MoU) with Maruti Suzuki India Limited (MSIL) under Supply Chain Finance arrangement that will allow the Bank to finance MSIL’s authorized dealers against some or all of their inventory. This tie-up will empower 4000+ Maruti Suzuki sales outlets across the country with comprehensive inventory funding option through J&K Bank for their working capital requirements.
Co-chaired by Bank’s MD & CEO Baldev Prakash and MSIL’s Senior Executive Officer Marketing & Sales Shashank Srivastav, the MOU signing ceremony held at Zonal Office Jammu witnessed General Manager Ashutosh Sareen signing the papers on Bank’s behalf while Head Marketing Finance Rohit Kohli put in his signatures for MSIL in presence of Bank’s Executive Director Sudhir Gupta, General Managers, Divisional Heads, Zonal Heads, Cluster Heads, marketing teams besides senior officials of the Bank with some of them joining the event through video-conferencing. MSIL’s General Manager Vishal Sharma, Commercial Business Head (Area North Zone) Muneesh Bali, Commercial Business Heads (NEXA) Vivek Anand and Aman Mehra from Maruti Finance were also present on the occasion.
On the occasion, J&K Bank MD & CEO and MSIL’s Senior Executive Officer Marketing jointly launched J&K Bank’s pre-approved personal loans for car finance facility through Maruti Suzuki Smart Finance (MSSF) portal. The tie-up between the two organizations will provide vehicle purchasers J&K Bank as financier in their options through MSSF portal.
Commenting upon the tie-up, MD & CEO Baldev Prakash said, “As the premier financial institution of J&K and Ladakh, we are delighted to partner with Maruti Suzuki India Limited (MSIL) – one of the leading car manufacturers in the country. The MoU is surely a big and well-deliberated step towards providing vital inventory funding support to Maruti Suzuki’s extensive dealer network seamlessly across the country, reinforcing our dedication to empowering businesses through innovative financial products. The introduction of robust inventory funding mechanism will surely ensure proper end use of funds as well.”
“And for us this partnership is very strategic because while being a win-win for both the partners, it reflects and reinforces our commitment towards facilitating customer convenience and fuelling business growth across our operational geographies”, he added.
While terming the tie-up as one of the steps towards digitization of services, he stated that Bank’s integration with MSSF portal will bolster inventory funding and car finance portfolios not only in UTs of J&K and Ladakh but in Rest of India as well.
“We have made remarkable journey vis-à-vis digitization of our offerings. Tie-up for inventory funding and integration with MSSF portal for car financing is yet another addition to our digitally-enabled ecosystem. Car finance is one of our key portfolios and we are in process of making Car loan product one of the best in the industry in time to come,” he added.
Speaking on the partnership, Shashank Srivastava, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India Limited, said, “We take pride in the robust dealer network which truly form the bedrock of our business. We are committed to support our dealer in ensuring their readiness as per evolving customer and market needs. We are elated to announce our collaboration with J&K Bank, focusing on innovative financing solutions for inventory funding. This strategic alliance reinforces our long-term association with J&K Bank leveraging the strength of both the MSIL and J&K Bank to offer tailored retail finance products and end to end working capital solutions, thus marking a significant milestone for both the organization.”
Earlier General Manager Corporate Banking Ashutosh Sareen gave a detailed presentation on inventory funding process and benefits of tie-up for the Bank, MSIL and more importantly authorized dealers. “Notably by virtue of this tie-up, authorized dealers of MSIL would need lesser collateral requirement while availing this facility. Likewise MSIL will receive instant credits in its account before dispatch of vehicles, which will considerably reduce its working capital requirements besides all the operations will be carried out digitally by way of granting portal access to all the parties involved,” he said.
Connected through VC, General Manager (Consumer and Commercial Banking) Narjay Gupta briefed the participants about the roll-out of Car Loan Finance facility on the MSSF portal. “Our Retail Loan Origination Solution is now integrated with MSSF Portal which will give our existing MoU customers (government/semi-government and other institutions employees etc.) option of availing car finance from anywhere & everywhere for purchasing Maruti Suzuki vehicles.”
“All they need is to apply through MSSF and eligible customers will get pre-approved offers. The process has been made simple with minimum possible Turn-around Time (TAT) for disbursal of loan once the formalities and eligibility criteria is met,” he said.