Union Bank ties up with NCML
Public sector bank Union Bank of India on Wednesday said it has entered into an agreement with National Collateral Management Services Ltd (NCMSL) to avail itself of the latter's services in its new scheme to extend credit against warehouse recei pts.
This is in addition to an existing tie-up with National Bulk Handling Corporation for similar services. Union Bank has launched a special scheme to extend credits against warehouse receipts with an objective to providing credit on competitive rates to food and agro-based units, the bank stated here.
NCML will provide collateral management services to the commodities pledged to the bank, including ensuring quantity and quality of the commodities pledged, it said. The arrangement is expected to help the bank ensure better credit quality. – PTI
(Source: Businees Line;Mumbai;December 3, 2008)