Honda Siel Cars India signs MoU with Axis Bank for Channel Finance programme

December 28, 2009 New Delhi

New Delhi, December 28, 2009: Honda Siel Cars India Limited, leading manufacturer of premium cars in India today announced the Channel Finance Programme in partnership with Axis Bank, India’s third largest private bank. With this arrangement, Axis Bank has become one of the preferred channel financiers of Honda Siel Cars India (HSCI) Limited.

An MoU has been signed between HSCI and Axis Bank on 10th December 2009 whereby Axis Bank has approved a line of credit for financing the dealers of Honda Siel under Channel Financing of Inventory Funding for Dealer Vehicle Stocks along with Retail Financing of Auto Loans.

Axis Bank has stepped up loan disbursal in the auto sector and is looking to corner a significant market share in the near term by leveraging its 938 branches spanning across 583 cities in India.

Commenting on the Channel Finance Programme Mr. S K Chakrabarti, Executive Director – Retail Banking, SME and Agri, Axis Bank said "Our retail loans portfolio already comprises a large variety of products, which coupled with our strong distribution network, caters to a large part of the country. This agreement will further give us the opportunity to provide our customers more value added services at competitive rates and expose them to our various offerings. This partnership with Honda Siel will benefit the Honda Siel dealers’ network as well as the retail auto loan customers.”

Speaking on the occasion Mr. T. Natsume, Director – Marketing, Honda Siel Cars India Limited said, “With this tie-up Honda Siel and Axis Bank have agreed to pool their resources together to make accessible organized finance at competitive rates to our dealers and customers across the country for purchase of Honda cars.”

With a large customer base of more than 3.5 lakh customers, HSCI Limited has a strong sales and distribution network spread across the country. The dealership network includes 111 facilities in 66 cities.

About Axis Bank: Axis Bank is the third largest private sector bank in India.  We offer a vast spectrum of services encompassing Large and Mid-Corporate Banking, SME Banking, Agri-Business Banking, Retail Banking and International Banking.

The Bank’s network in India spans 939 offices and over 3975 ATMs. The Bank has embarked on creating a footprint in Asia and today has a presence in the major financial cities of Singapore, Hong Kong, Dubai and Shanghai. In addition, the Bank has also entered into strategic tie-ups and alliances with partner banks in UAE, Doha, Muscat (to be launched) to reach out to the NRIs in these geographies.

The Bank has set up five wholly-owned subsidiaries, Axis Sales Limited, Axis Private Equity Limited, Axis Trustee Services Limited, Axis Asset Management Company Limited and Axis Mutual Fund Trustee Limited.

The Bank carries out its corporate social responsibility initiative through Axis Bank Foundation set up in 2006 as a registered public trust. Each year the Bank transfers 1% of its net profit for the previous year to the foundation.