Lakshmi Vilas Bank Enters into Strategic Alliance with NCML

Lakshmi Vilas Bank announces its alliance with National Collateral Management Service Limited (NCML), a major agri-infrastructure player, for collateral management and warehousing services.

These services will enable industry traders and farmers to financing their capital requirements at all stages of supply chain, ranging from pre-harvesting to the marketing and export stages. This would enable the bank to provide financial flexibility to farmers, reducing the seasonal price fluctuations and distress sales during crop harvest season.

Mr. Ashok Dhamankar, CFO, NCML, exchanged the agreement with Mr. Rakesh Sharma, MD & CEO, LVB in the presence of Mr .Vijay singh Patel, Head-Business Development and Mr. Jayaraman, State head –TN, NCML and the entire team of top management of LVB.                  

Commenting on the tie-up, Mr. Rakesh Sharma, MD & CEO, Lakshmi Vilas Bank said, “In yet another step ahead to offer superior services to its customers, farmers and to help Agribusiness and Agri Infrastructure to grow in a better way, we have entered in to this strategic alliance with NCML. We truly believe that this partnership with NCML will further deliver value to all our customers. Given the excellent and demonstrated track record of NCML, the partnership will enable Lakshmi Vilas Bank to mitigate credit risk for its Commodity Finance product offerings.  Lakshmi Vilas Bank has been at the forefront in evolving and adapting to the financial sector. We would want to make our Bank to be a preferred Bank for different customer segments.“

Commenting on this tie-up, Mr. Sanjay Kaul, MD & CEO, NCML said, “The tie-up with Lakshmi Vilas Bank will help in the spread of the agricultural finance and promote warehousing receipt financing across the country. This new arrangement with LVB will provide an opportunity to field level functionaries to extend finance against warehouse receipts. Our warehouses spread across the country issue credible and reliable Warehouse Receipts.  The tie up would further consolidate the bank’s presence with the wide network of warehouses of NCML in various states across length and breadth of the country and in turn help NCML to better serve the stakeholders in the agri-supply chain.”

About Lakshmi Vilas Bank:

Lakshmi Vilas Bank was founded in 1926 and it has a national presence serving over 2 million customers through its 400 branches, 7 Extension Counters and 790 ATMs, totalling close to 1200 outlets in 16 states and Union territory of Pondicherry.

The bank is active across the entire spectrum of customer segments - Retail, Mid-market and Corporate. Through its branches, the bank also offers a host of para-banking products in association with Life and General Insurance companies, mutual funds, stock broking houses, money remittance companies, etc. on a technologically advanced platform.  

About National Collateral Management Services Ltd (NCML):

The National Collateral Management Services Limited (NCML) is the country’s leading player in warehousing services, supply chain management solutions and testing & certification. It provides collateral risk management for lenders as well as risk management of physical deliveries for commodity exchanges. NCML works in partnership with more than 40 leading banks and in more than 950 locations across the country.

The company provides these services to growers, traders, processors, importers, exporters, overseas buyers & sellers, lenders, commodity exchanges, exchange traders and government agencies. NCML is present in 18 states and union territories across India and its warehouses manage as many as 70 agricultural commodities as well as storage services for non-agricultural commodities and inventories.

Incorporated in 2004, NCML has been promoted by reputed banks like, Bank of India, Canara Bank, HDFC Bank, Indian Bank, The Karur Vysya Bank, Punjab National Bank, Corporation Bank and Yes Bank as well as organisations like Rabo Equity, IFC - Washington, NCDEX, IFFCO, HAFED and ACE Geneva. The company is governed by an independent and professional board.

The company provides following services: storage & preservation, procurement & supply chain, collateral management, testing & certification, trade & commodity intelligence, weather intelligence and crop intelligence.