Public sector lender, Allahabad Bank has entered into an agreement with automobile major, Hyundai Motors India Ltd (HMIL) to offer vehicle finance to customers of Hyundai.

The two entities signed a Memorandum of Understanding (MoU) in this regard. The MoU was signed by Mr. Arvind Saxena, Director, Marketing & Sales, HMIL and Mr. Bibhas Kumar Srivastav, General Manager, Retail Banking, Allahabad Bank as representatives.

Allahabad Bank has a vast branch network in the country figuring to 2364. Headquartered in Kolkata, the bank also has a big ATM network of above 200 ATMs. The alliance between the two entities will help them leverage each other's strengths and competencies so as to make a deeper penetration in the market and grab a bigger slice of market share.

Speaking on the occasion, Mr. Arvind Saxena, Director, Marketing and Sales, HMIL, said, "We are very happy to announce this partnership with Allahabad Bank. This partnership will provide our customers with competitive rates and convenient finance options at locations where the bank has branches. As we are rapidly increasing our sales network, this tie up will further help us to reach a wider base of customers, increase penetration in tier II & III cities in terms of our products and the finance options available."

HMIL currently has a 307 dealers and 627 service points across India, which will see further expansion in 2011.