Dena Bank revving up used car finance portfolio

Of late, domestic used car space has been growing significantly

Dena Bank has planned to increase its vehicle finance portfolio and is especially focussing on the used car segment.

Of late, the domestic used car space has been growing significantly, particularly after the entry of organised players in the market.

Dena Bank has tied up with all the leading car and two-wheeler manufacturers to expand its vehicle portfolio. It has also announced competitive interest rates to attract customers.

"We are bullish on the used car segment, which has been growing fast over the past few years," Dena Bank CMD Ashwani Kumar said at a conference call here.

The public sector bank is offering used car finance at 12.50% interest against 10.50 for new vehicles.

"Our vehicle finance interest rates are probably the cheapest in the market spanning both commercial banks and non-banking finance companies (NBFC)," he informed.



To connect with retail customers, the Bank has organised a 60-day vehicle carnival during July-August 2015 across India and target to offer vehicle credit line to 24,000 customers, he said.

This is a part of the bank's initiatives to launch marathon auto loan camps across the country for catering the retail and commercial borrowers. "We are proactively reaching out to the organised used car players and old car marts," Kumar said.

Meanwhile, the Bank plans to up its total number of branches in UP to 100 by the end of this year. Currently, there are 78 branches in UP.

Dena Bank is also setting up 200 'Dena e-Smart' lobbies at its branches to offer value added services to customers. In UP, the annual business size of Dena Bank is about Rs 5,500 crore.