NBHC ties up with leading PSBs for warehouse finance solutions

Mumbai, July 19 (UNI) Two of India's leading public sector banks, IDBI Bank Ltd and State Bank of Patiala, have joined hands with National Bulk Handling Corporation Ltd.(NBHC), a financial technologies Group Company, for warehouse receipt financing solutions.

NBHC provides solutions for a complete commodity and collateral management and will work as collateral manager with the two banks to provide farmers with hassle-free and economical access to credit.

D.K Kamble, Chief General Manager(Priority Sector), IDBI Bank and G P Kantia, DGM (Priority Sector Advances), State Bank of Patiala inked the agreement last week with Anil K Choudhary, MD and CEO of NBHC.

A product of favourable policy environment, warehouse receipt financing as an agri credit option is gaining momentum. As collateral manager, NBHC will shoulder the responsibility of stock pledged with the banks for quality and quantity.

According to Choudhary, ''With the widespread network of the banks, NBHC, IDBI Bank and State Bank of Patiala can provide a great extent of financial flexibility to farmers, reducing the seasonal price fluctuations and distress sales during the crop harvest season''.

NBHC's over 250 warehouses and IDBI Bank's network of over 434 branches will be a captivating combination in reaching out to maximum number of customers in this segment on an immediate basis.

''There is a vast potential of lending in the agri-sector through warehouse receipt financing. Tying up with NBHC will help IDBI Bank increase the agri-portfolio by building quality assets in agri- lending. NBHC, through its expertise in commodity handling, will help IDBI Bank mitigate the risks associated with commodity financing, said Kamble.

With its recent acquisition of United Western Bank, IDBI now operates through a network of 434 branches, 18 extension counters and 529 ATMs spread across 255 cities in India. It has thus spread its wings to semi-urban and rural India, which will help it build a robust agri-portfolio.

Since, the passage of the Warehouse (Regulations and Development) Bill, 2005, warehouse receipts will soon get negotiable status benefiting farmers and banks. However, the decision will also have a positive impact on warehouse receipt financing.

NBHC's comprehensive and proactive collateral risk management mechanism assures banks of maintaining quality and quantity of the commodity. It is expected that agri-lending through warehouse receipts will touch Rs. 20-22 billion over the next 4-5 years.

At present, NBHC manages more than one million MT of commodity under the collateral management spread over 1200 warehouses.

NBHC, is a national-level end-to-end solution provider in warehousing, bulk handling, procurement, grading and inspection, commodity care and pest management, audit, accreditation&commodity valuation, collateral management and disposal of commodities.

UNI