National Collateral Management Services Ltd (NCMSL) has tied-up with IndusInd Bank to provide collateral management and warehousing services.
NCMSL's Managing Director & CEO, Sanjay Kaul and IndusInd Bank's Head, Transaction Banking, Ramesh Ganeshan, signed the MoU.
Collateral management is the process of agreeing, confirming and advising collateral transactions.
In providing collateral management services, NCMSL works in partnership with 16 leading banks and in more than 200 locations all across the country.
Elaborating on this tie-up, Kaul said, "We hope that this arrangement will result in substantial business across India. This new arrangement with IndusInd Bank will provide an opportunity to field functionaries to extend finance against warehouse receipts. Our warehouses spread across the country issue credible and reliable warehouse receipts."
Ganeshan said that the arrangement would focus on the producers at the start of the supply-chain.
"The farmers will benefit from this scheme, as it will provide them with post-harvest credit facilities so that they do not have to resort to distress selling of their produce," he said.
NCMSL is a national-level institution, promoted by IFFCO, Canara Bank, Corporation Bank, Punjab National Bank, HDFC Bank, Karur Vysya Bank, YES Bank, NCDEX and HAFED, to provide risk management solutions in the areas of commodity and inventories.
