Karnataka Bank, a Mangalore based lender has inked pact with the National Collateral Management Services (NCMSL) for warehousing services. It has signed a memorandum of understanding with NCMSL, under which bank will offer financing against the godown receipts/cold storage receipts issued by NCMSL under its ‘KBL-Krishik Bhandar’ scheme.
The farmers will get benefit by availing finance, as they can store their agriculture produce in the godowns/cold storages of NCMSL. NCMSL will also ensure insurance coverage for risks such as fire, burglary, earthquake, riots, malicious damage, war and flood. Karnataka Bank has set a lending target of Rs 3,770 crore to the agriculture sector by March 2013.
