Ashok Leyland, India’s leading commercial vehicle manufacturer and flagship company of the Hinduja Group, signed a Memorandum of Understanding with Punjab Gramin Bank on Thursday to establish a strategic vehicle financing partnership aimed at providing customized financial solutions to its customers across Punjab.
The agreement, signed by Viplav Shah, Head-LCV Business at Ashok Leyland, and A.K. Mittal, General Manager of Punjab Gramin Bank, was witnessed by G.K. Negi, Chairman of Punjab Gramin Bank. The partnership enables Punjab Gramin Bank to provide end-to-end financial solutions for Ashok Leyland’s commercial vehicle buyers with flexible repayment options tailored to individual customer needs.
This marks the latest in a series of similar partnerships that Ashok Leyland has forged with regional rural banks across India, including recent agreements with Sarva Haryana Gramin Bank in January 2025, West Bengal Gramin Bank in July 2025, and Chhattisgarh Rajya Gramin Bank in July 2025.
“Ashok Leyland is delighted to partner with Punjab Gramin Bank to provide attractive financing solutions to our customers,” said Viplav Shah, Head – LCV Business, Ashok Leyland. “This partnership will strengthen Ashok Leyland’s market position by offering comprehensive financing solutions with flexible, customized repayment plans. Leveraging the Bank’s extensive network, it will ensure greater convenience and accessibility for customers. Our products, featuring innovative technology, offer industry-leading total cost of ownership, ensuring maximum profitability for our customers. We remain committed to delivering exceptional customer experiences.”
G.K. Negi, Chairman of Punjab Gramin Bank, stated: “Punjab Gramin Bank is pleased to partner with Ashok Leyland to offer seamless vehicle financing solutions. The partnership will enable the companies to provide tailored financial solutions, delivering convenience and comprehensive choices to customers. We are confident that this partnership will fulfil the business needs of both organizations, creating a significant positive impact and paving the way for continued progress and success in the commercial vehicle sector.”
Punjab Gramin Bank, formed through the amalgamation of three regional rural banks in Punjab in January 2019, operates 457 branches across the state and serves over 40.76 lakh customers as of March 2025. The bank is sponsored by Punjab National Bank and has its headquarters in Kapurthala.
The collaboration aims to enhance customer convenience in Punjab’s commercial vehicle market by providing accessible financing options through Punjab Gramin Bank’s extensive rural network. The partnership addresses the financing needs of customers seeking to purchase Ashok Leyland’s range of commercial vehicles, from light commercial vehicles for intercity transport to heavy-duty trucks for long-haul operations.
The vehicle manufacturer’s strategy of partnering with regional rural banks reflects its focus on expanding market reach in rural and semi-urban areas where these banks have established customer relationships and understanding of local market conditions.