Indian Bank ties up with NCMS

Indian Bank may pick up a stake in the National Collateral Management Services(NCMS), an organisation promoted by NCDEX, a leading multi-commodity exchange.

Addressing a press conference on the occasion of Indian Bank signing an MoU with NCMS, K C Chakrabarthy, chairman and managing director, Indian Bank, said that the bank was considering picking up a stake in NCMS as the commodity business is growing. However, nothing has been firmed up in this regard, he said.

With this agreement, NCMS will take the risk arising out of financing commodities. NCMS has the speciality in handling risk of financing commodities. We expect to provide Rs 150 crore to Rs 200 crore in financing commodities and construction of warehouses in a year's time, he added.

A Hari Prasad, managing director and CEO of NCMS, said that with banks partnering in lending finance it will enable farmers to get a better price for their produce and consumers get their produce at competitive prices.

The advantage of picking up a stake in NCMS will enable the company to prioritise business for its equity partners first, Prasad said.