The second-largest automaker in the Indian market Hyundai motors India has recently signed an agreement with the state-owned UCO bank for its vehicle financing.

Under the terms of the agreement, both the parties will try to expand and leverage from each other's strengths wherein Hyundai will push UCO bank's car loan services and the Bank will try to cross sell Hyundai's products.

The MoU was signed by Arvind Saxena, Director, Director - Marketing & Sales, HMIL and S K Dey Purkayastha, General Manager - Retail Banking & Corporate Communication, UCO Bank as representatives from both the respective organisations. The country's largest passenger car exporter has signed the agreement with a view to provide convenient finance options for its customers.

Notably, the 66-year old bank holds 2,151 branches with 35 zonal offices across the country. While the tie-up will help the automaker to arrange for easy financing for its consumers it will also help the state-owned entity to boost its car loans portfolio. Hyundai Motors India has registered record sales for the month of February and market watchers believe that same will be the trend in March 2010.