NBHC ties up with PSBs for warehouse finance solutions

Kolkata, Jul 19 (UNI) India's leading public sector banks IDBI Bank Ltd and State Bank of Patiala have joined hands with National Bulk Handling Corporation Ltd(NBHC), for warehouse receipt financing solutions.

NBHC would work as collateral manager with the two banks to provide farmers with hassle-free and economical access to credit.

Chief General Manager D K Kamble today signed the agreement on behalf of IDBI Bank MD Anil Choudhary.

A product of favourable policy environment, warehouse receipt financing as an agri-credit option is gaining momentum. NBHC has been appointed collateral manager by both IDBI Bank and State Bank of Patiala to fund farmers, corporates, processors etc.

Mr Choudhary said, 'We are extremely happy to sign the collateral management agreements with IDBI Bank and State Bank of Patiala, both leading banks in the agricultural finance sector.'' 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.

''Tying up with NBHC will help IDBI Bank to increase agri-portfolio by building quality assets in agri-lending. NBHC, through its expertise in commodity handling and help IDBI Bank mitigate the risks associated with commodity financing,'' D K Kamble said.

IDBI Bank, with its recent acquisition of United Western Bank, no operates through a network of 434 branches, 18 extension counters and 529 ATMs spread across 255 cities in India.

UNI