SBI's associate, State Bank of Bikaner and Jaipur (SBBJ) has entered into an agreement with automaker Mahindra & Mahindra (M&M) for financing the latter's range of vehicles.
As per the tie-up, SBBJ will extend auto loans at 12% for passenger vehicles and 11.75% for commercial vehicles to the customers of M&M. The bank would provide loan up to 85% of the on-road price of the vehicle with a repayment period of up to seven years.
Senior Vice-President of M&M, K Chandrasekar said, "Low interest rates and low processing fee are some of the benefits of opting for State Bank of Bikaner and Jaipur as a preferred financier."
SBBJ would extend loans for the entire range of M&M vehicles including utility vehicles, pick-ups and passenger cars.
Meanwhile the bank has reported a rise of 28.07% to Rs 403.45 crore in its net profits during the last quarter of the FY09. Last year during the same period, net profit for the bank stood at Rs 315 crore.
The total income of the bank during the period under review rose to Rs 4,387.33 crore against Rs 3,523.68 crore, a year ago.