Tata Motors, India based largest automobile company, has entered into a memorandum of understanding (MoU) with the Union Bank of India (UBI).

Under the arrangement, the lender will provide an added facility to Tata Motors' dealers for funding of their purchases of the company's cars and utility vehicles.

With this signing of deal, UBI has become one of the preferred channel financiers of Tata Motors. UBI has a large network of over 2,650 branches across the country.

The share of Tata Motors today closed at Rs. 609 on BSE, down 1% compared to its previous close. (d)