NBHC?s tie-up with Indore Bank to boost turnover
WAREHOUSING AND supply-chain company National Bulk Handling Corporation Ltd?s (NBHC) tie-up with State Bank of Indore is expected to boost its turnover significantly. Until now, NBHC had tie-ups with private banks, which have limited reach, but things are set to change now.Updated: Aug 28, 2006 12:16 IST
WAREHOUSING AND supply-chain company National Bulk Handling Corporation Ltd’s (NBHC) tie-up with State Bank of Indore is expected to boost its turnover significantly. Until now, NBHC had tie-ups with private banks, which have limited reach, but things are set to change now.
Banks extend finance to farmers and traders against receipts issued by NBHC’s accredited warehouses. “NBHC provides comprehensive solutions for risk mitigation and management of commodities to benefit all the participants,” says NBHC Vice-President (Business Development) Gyanendra Kumar Gupta.
“Both the parties, banks and farmers/traders, benefit from our association. We make available loans at low rates and provide collateral management to the banks by inspecting quality of the commodities and ensuring its safety in the warehouse”, he said.
Till date, the NBHC has financed loans to the tune of Rs 20 crore in the agriculture sector in the State and expects to take this figure to Rs 200 crore. After its association with the State Bank of Indore, the company anticipates surge in the volumes form next soyabean crop. The NBHC currently has eight warehouses in and around Indore and plans to expand to 50 warehouses all over the State.
Explaining the concept of NBHC in detail the official said that though India is predominantly an agricultural economy and nearly 70% of the population earns its livelihood from agriculture and allied sectors, the condition of the farmer is very poor. They are not getting remunerative prices for their produce.
Amongst all factors adversely affecting the Indian farmer, some are - a lack of quality warehousing facilities to prevent foodgrain loss and banks not extending loan against their commodities due to unreliability of quality and quantity of commodity.
NBHC is committed to reduce post-harvest risk/wastage of agri-commodities, serve and develop the nation’s post-harvesting infrastructural facilities, encourage all stakeholders in the Indian agri-ecosystem achieve better price realisation and promote countrywide acceptance of standard grades and specifications.
First Published: Aug 28, 2006 12:16 IST