Corporation Bank, a public sector lender, will take up collateral management and warehouse financing services. The bank today said it has entered into a strategic alliance with National Collateral Management Services Limited (NCMSL), a major agri-infrastructure player.
The objective of these services will be to assist industries, traders and farmers in financing their working capital requirements at all stages of the supply chain, ranging from pre-harvesting to the marketing and export stages, the bank said.
B N Shenoy, general manager of Corporation Bank said, "The tie up with NCMSL will provide a great fillip to warehouse receipt financing and will help the farmers to avoid selling their produce at give away prices by enabling them to hold on and wait for better prices."
The partnership will enable Corporation bank to mitigate credit risk for its commodity finance product offerings.
Sanjay Kaul, CEO of NCMSL said, “The tie up will prove beneficial to stakeholders in view of the large network of branches of Corporation Bank. NCMSL has plans to build its own warehouses at 40 locations across 12 states and this partnership will facilitate secured post harvest lending on large scale to farmers, processors and other agri-business clients”
Corporation Bank is a shareholder in NCMSL, and has plans to provide long-term funding requirements of NCMSL to add warehousing capacity across the country.
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 in the commodities and inventories.
