A Memorandum of Understanding (MoU) for the channel financing cooperation of Ashok Leyland’s dealers was inked by IDBI Bank and Ashok Leyland. The Memorandum of Understanding calls for cooperation in order to deliver customized financial solutions created especially for dealers by the participating organizations.
“With the combined strength of IDBI Bank Ltd and Ashok Leyland, the network of AL dealers will now have financing solutions to suit their needs using digital technology,” stated Gopal Mahadevan, Ashok Leyland’s CFO.
Suresh Khatanhar, the deputy managing director of IDBI Bank, explained that the bank’s ‘e-Supply Chain Financing’ digital channel finance solution was specifically developed to meet the working capital requirements of approved dealers and merchants connected to corporations.
“Thanks to our relationship, we will be able to assist more Indian enterprises. Our intention with the e-SCF technology is to offer Ashok Leyland’s dealers smooth financial support, promoting expansion and toughness throughout the entire supply chain,” Khatanhar stated.
The MoU was announced at the same time that IDBI Bank revealed its Q1 results on Monday, which showed a 62% increase in net profit year over year, to $1,224.2 crore from $756.4 crore in the same period previous year.