Corporation Bank has entered into a partnership with National Collateral Management Services Limited (NCMSL), a major agri-infrastructure player, for collateral management and warehousing services.
The objective of these services would be to assist industry, traders and farmers in financing their working capital requirements at all stages of the agricultural supply
chain, ranging from pre-harvesting to the marketing and export stages, a joint statement said
Corporation Bank General Manager B N Shenoy said: “This tie-up with NCMSL will provide a great fillip to warehouse receipt financing and will help the farmers avoid selling their produce at give-away prices by enabling them to hold on and wait for better prices.”
The partnership would also enable Corporation Bank to mitigate the credit risk on its commodity finance product offerings, the statement said.
NCMSL MD and CEO Sanjay Kaul said the tie-up would prove especially beneficial in view of the large branch network of the bank across the country.
NCMSL has plans to build its own warehouses at 40 locations across 12 states and this partnership would facilitate secured post-harvest lending on a large-scale to farmers, processors and other agri-business clients, he said.
Corporation Bank is a shareholder in NCMSL and has plans to cater to the long-term funding requirements of NCMSL in order to add to warehousing capacity across the country, the statement said.
NCMSL is a national-level institution promoted by IFFCO, Rabo Bank, IFC, Canara Bank, Corporation Bank, Punjab National Bank, HDFC Bank, Karur Vysya Bank, YES BANK, NCDEX, ACE, Geneva and HAFED to provide risk management solutions on
commodities and inventories.
Courtesy: PTI
