L&T Finance's tie up with NBHC will provide a great fillip to warehouse receipt financing and will enable the farmers to get better prices for their agricultural produce by avoiding distress sell
Mumbai: National Bulk Handling Corp Ltd (NBHC), an integrated agri-commodity and collateral management company said it signed a memorandum of understanding (MoU) with L&T Finance Ltd (LTF) to work together in the area of collateral management, reports PTI.
The agreement was signed by GC Rangan - COO, LTF and Anil Choudhary, Managing Director & CEO, NBHC.
NBHC is associated with 38 leading banks and financial institutions for collateral management. Through this network, it has facilitated funding and benefited over 150,000 small and medium farmers by way of warehouse receipt financing (WRF).
Till date, it has helped banks and financial institutions disburse over Rs26,000 crore funding through its collateral management support and services to banks, thereby benefiting borrowers across the ecosystem, a company statement said here.
NBHC has been providing a platform for farmers and the entire commodity value chain to reduce losses and wastages and gain benefits of market opportunity. With its pan-India presence and robust business processes and efforts, it has enabled post-harvest funding to over 150,000 farmers.
"The tie-up with L&T Finance will further augment NBHC's underlying mission of facilitating post-harvest credit between banks and farmers in rural India as well to all its depositors and business associates in the ecosystem," NBHC managing director and CEO Anil K Choudhary said.
NBHC's network of over 900 locations across 19 states that are under collateral management and professional warehousing and L&T Finance's spectrum of financial products and services for trade, industry and agriculture, will be highly beneficial to the sector, Choudhary said.
Commenting on the tie-up, Dinanath Dubhashi, Chief Executive, L&T Finance stated, "LTF is already serving to a large rural customer base and recently, we have started our rural enterprise finance vertical, which includes commodity finance, among other businesses."
This tie up with NBHC will provide a great fillip to warehouse receipt financing and will enable the farmers to get better prices for their agricultural produce by avoiding distress sell. Given the demonstrated track record of NBHC, the partnership will enable L&T Finance to mitigate credit risk for its commodity finance product offerings, Dubhashi said.