PSB's to part fund Jaguar-Land Rover deal

Leading Indian public sector banks State Bank of India (SBI), Bank of Baroda (BoB) and Syndicate Bank are close to committing a part of the $3 billion bridge loan that Tata Motors has to raise to finance the acquisition of Jaguar and Land Rover from Ford.

The deal was signed to buy luxury brands Jaguar and Land Rover for $2.3 billion in cash on March 26.

As reported by Business Standard, according to banking sources, banks like BoB are expected to commit between $50 million and $100 million, while Syndicate Bank could take exposure between $10 million and $30 million.

The other banks in the reckoning include State Bank of Mauritius, ING Bank, JP Morgan, and Citibank.

The Jaguar-Land Rover deal will extend Tata Motors' product portfolio span from a price point of $2,500 to $170,000 and expand its distribution network more than four times to 2,700 outlets in 138 countries.

The deal is expected to be closed in a week or two.