KBL signs MoU with NCMSL for benefit of farmers

KBL signs MoU with NCMSL for benefit of farmers

Mangalore Today News Network

Mangalore, Sep14, 2012 : Karnataka Bank Limited (KBL) has signed a memorandum of understanding (MoU) with the National Collateral Management Services Limited (NCMSL) for collateral management services, warehouse receipt financing, and so on.

Accordingly, the bank is financing against godown receipts/cold storage receipts issued by NCMSL under the bank’s KBL – Krishik Bhandar Scheme at an attractive interest rate. During harvest season, prices of agri products will be low. So farmers can store their agri products in NCMSL godows and cold storages and sell them in the market at a higher price in the off season. NCMSL also provides insurance cover on risks such as burglary, fire, riots, malicious damage, earthquake, flood, war, and others.

NCMSL is the largest institution of its kind, engaged in providing high quality storage solutions to farmers. Its storage network is spread all over the country, and it stores a wide range of food items such as pulses, oil seeds, grains, spices, commercial crops, plantation crops, and others.

Karnataka Bank, a leading tech-savvy private bank, has branches all over India. It is one of the pioneers in rural and agricultural lending and has introduced a number of agri schemes and loans for farmers. The bank has set a lending target of Rs. 3,770 crore to the agricultural sector by March 2013.

Shri Mahabaleshwar M. S., general manager of Karnataka Bank, and Mr. Shymal Gupta, chief business officer for NCMSL, signed the MoU in the presence of Shri V. N. Manohar, deputy general manager of KBL; Shri Mahalingeshwar, assistant general manager of KBL; Shri Ramesh Vaidya, manager (agriculture) for NCMSL, and Mr. Raman of NCMSL.