Karnataka Bank to lend against warehouse receipts

Mangaluru-based private sector lender Karnataka Bank Ltd has entered into a Memorandum of Understanding (MoU) with Edelweiss Integrated Commodity Management Limited (EICML) for extending storage facilities to farmers and finance against their warehouse receipts (WHR).

EICML is a collateral management service provider with a pan-India presence.

According to the MoU signed today, finance to farmers will be extended under 'Krishik Bhandar' scheme of the Bank.

EICML has nominated Karnataka Bank as preferred financier for extending finance to farmers against the WHR, the Bank said in a statement.

"This is one more agri credit initiative from Karnataka Bank, which will help farmers to store their agriculture produce by avoiding distress sale, earn better price and simultaneously avail loan for further agriculture operation," Mahabaleshara M S, Chief General Manager of the bank said.