"NBHC has entered into a memorandum of understanding (MoU) with Canara Bank to extend collateral management services. These services will not only bring farmers into the formal banking system but also enable them to avail of credit at concessional rates as loans will be offered against reliable collateral," a release issued here said.
This development will help NBHC expand its services across additional geographies as well as enable it to manage more commodities.
"This association will bring immense value to the commodity ecosystem. The biggest advantage to borrowers comes in terms of securing credit at reasonable rates of interest. This is yet another step in attracting institutional finance in the sector which is critical for its stability," NBHC Managing Director and CEO Anil Choudhary said.
NBHC currently handles Rs 6,500 crore worth of agri commodities on an average through its owned, leased, franchisee and accredited warehouses throughout India and manages over 190 commodities which include grains and cash crops such as cotton and various non-agri commodities.

Banks have been building their portfolio of Warehouse Receipt Finance but the challenges remain in terms of verification and management of the quantity and quality of the crops.

"This is a mutually beneficial tie up as we now have one more channel to lend against Warehouse Receipts at reasonable rates of interest. This tie up will allow us to confidently grow our services. NBHC has expertise to manage the risks of commodity storage and disposal," Canara Bank Managing Director and CEO VS Krishna Kumar said.
With a pan-India network of over 1450 warehouses across 17 states and about 1.50 million tonne of warehousing capacity and over 50 facilities pan India for quality testing and pest management services, NBHC caters to customers ranging from farmers, processor, traders, domestic and international corporates, commodity exchanges as well as 44 banks.
NBHC spans its services across the eco-system, in aggregate managed about Rs 65,000 crore of assets for 44 banks, enabling post-harvest agri-credit of about Rs 45,000 crore with a dedicated focus for the farmer on last mile.

In terms of quantity the company has managed about 27 MMT for banks alone and carried out preventive treatment/ fumigation of about 42 MMT of commodities.

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