Central Bank of India has informed that it has entered into an agreement with Ashok Leyland, to provide loans for commercial vehicles.

Under the facility, Central Bank of India will provide loans for Ashok Leyland's customers at 100 basis points below its benchmark prime lending rate till March 31, 2010. The bank's current BPLR is 12 per cent.

The latest move is considered as a part of bank's strategy to increase its retail loans portfolio to 15 per cent of its total assets, from the current 9 per cent.

Besides this, the lender is also looking at introducing retail products like pre-paid cards in order to shore-up its retail base.

Central Bank expects to disburse loan worth Rs 150-300 crore under this scheme, in order to gain a share of 3-5 per cent of Ashok Leyland's total commercial business.

The lender's commercial vehicle portfolio currently stands at Rs 2,000 crore.