Public sector, Allahabad Bank has entered into an agreement with two-wheeler maker Suzuki Motorcycle India for financing the latter's two-wheelers.

Under the MoU, the bank is going to finance the company's two-wheelers under ‘AllBank Mobike' scheme.

Allahabad Bank Chairman and Managing Director K.R. Kamath said that bank will give two-wheeler loans to Suzuki's buyers at discounted interest rate.

"This association with Suzuki Motorcycle will create enormous scope for the bank in the area of financing of motorcycles, increasing bank's retail credit portfolio and client base," he added.

In the past few months, many banks have entered into an agreement with auto makers in order to finance the vehicles. Recently Corporation Bank and Syndicate Bank have signed a pact with Tata Motors Limited and Hyundai Motor India Ltd respectively.