TAFE & CITY UNION BANK SIGN AN MOU
FOR TRACTOR FINANCING

Chennai, 28th September 2007 : Tractors and Farm Equipments Limited, (TAFE) and City Union Bank Ltd. (CUB) today announced the signing of a Memorandum of Understanding under which City Union Bank will finance the purchase of tractors manufactured under the brand names 'Massey Ferguson' and 'Eicher'. This MOU was signed by Ms Mallika Srinivsan, Director for and on behalf of TAFE and Shri S. Balasubramanian, Chairman for and on behalf of City Union Bank Ltd.
Speaking on the occasion, Ms Mallika Srinivasan stated : "TAFE seeks to capitalize on the opportunities presented due to rapid growth in the economy and the demanding market dynamics. This MOU will enable the members of the dealer fraternity to facilitate convenient loan options for the members of the farming community. City Union Bank Ltd., has a tradition of excellent relationship and service with the SME sector and this association with the vital segment of the agrarian sector will benefit the parties mutually”.
Shri S. Balasubramanian, Chairman, City Union Bank Ltd., observed : 'City Union Bank Ltd., has a strong presence in the delta areas of Tamil Nadu and in Andhra Pradesh and Karnataka. Indian economy is on a roll and the agrarian sector needs all the support to benefit from the growth opportunity presented in the current context. Networking of all our branches is complete and City Union Bank is also expanding to newer locations to enhance our reach. This will provide greater opportunities for the farming community to benefit from association with CUB for their needs. Our excellent relationship with the farming community in all the three states will get a further fillip with this MOU”.
About Tractors and Farm Equipments Limited
Chennai-based Tractors and Farm Equipments Limited (TAFE) manufactures and markets tractors under the brand names 'TAFE', 'Massey Ferguson' and 'Eicher' in the range of
25 HP to 90 HP. With manufacturing plants located at Bhopal (Madhya Pradesh), Bangalore, Madurai and Chennai and capacity utilization exceeding 90%, TAFE enjoys a market share of 22% and is among the top ten tractor manufacturers in the world. With a turnover of over Rs. 3,000 crores and a sale of over 80,000 tractors in the last fiscal year, TAFE's products have earned the sobriquet 'Farmers Favourites' from the farming community and a reputation for robust design, durability, high fuel efficiency, low operating costs and a high resale value. TAFE's product portfolio has been considerably expanded with a number of tractor models such as the Orchard Plus, Compressor Special and Paddy Master that cater to specific crops and applications. Their recent launch of the “No Tension” and "Planetary Drive" series for use in heavy soils and heavy duty haulage have been well received in the southern states.
About City Union Bank Ltd.
City Union Bank Ltd., headquartered at Kumbakonam is among the most dynamic private banks in the country. With its track record of excellent relationship and service to the small, medium and agrarian sector as also middle class income households, CUB crossed business turnover of over Rs. 9,000 crores in the present financial year. The countrywide network of 180 branches are interconnected and the bank has introduced modern concepts such as RTGS, NEFT, Anywhere Banking, Mobile Banking, Internet Banking. The forward looking prospects and practices of CUB have led the country's two premier institutions… engineering major Larsen & Toubro Ltd. (L&T) and life insurance leader
LIC of India… to acquire a stake of around 5% each in CUB, which besides a welcome recognition also enables the bank to reach out to the respective industries in a
significant way.