India’s Yes Bank is expanding its agribusiness by partnering with the country’s National Collateral Management Services (NCMS).

The partnership will see Yes Bank use NCMS for collateral management and warehousing services.

Specifically, the services will target the financing market for traders’ and farmers’ supply chains from pre-harvest to the marketing and export stages.

Furthermore, working capital financing in commodities, especially agribusiness, will be given more of a focus.

“Food and agribusiness and agri-infrastructure have been key focus areas and I truly believe that this partnership with NCMS will further deliver value to all our stakeholders and is in accordance with the bank’s development banking philosophy,” says Rana Kapoor, managing director and chief executive officer of Yes Bank.

“Given the excellent and demonstrated track record of NCMS, this partnership will enable us to mitigate credit risk for our commodity finance product offerings,” Kapoor continues.

Yes Bank’s partnership with NCMS sees the bank holding a stake in the collateral management firm, as well as fully underwriting long-term funding requirements of NCMS to add warehousing capacity across India.

Sanjay Kaul, managing director and chief executive officer of NCMS, notes: “We are confident that this arrangement will result in substantial new business across India. This new arrangement with Yes Bank will provide an opportunity to field functionaries to extend finance against warehouse receipts.”

Have you seen an increased demand in agribusiness financing in India?  Let us know (anonymously) in the comment box below.