As part of this collateral management agreement, SLCM will be the custodian of the commodities which bank has taken as a security against the loans, issued by it. The Memorandum of Understanding (MoU) was signed by Mr Ved Prakash, DGM, SBI and Mr Ankur Jaipuria, Chief Business Officer, SLCM.
Speaking about the partnership, Mr Prakash, DGM, SBI said, “We have entered into an agreement for collateral management services with Sohan Lal Commodity Management Pvt. Ltd. (SLCM) a company known for providing modern scientific warehousing and commodity testing services .This agreement with SLCM underscores the importance of agribusiness and agri infrastructure for SBI. As part of the agreement, SLCM will manage the quantity & quality of the collateral which will help in mitigating the risk for the bank. I truly believe that this partnership with SLCM will further deliver value to all our stakeholders, and is in accordance with the Bank’s focus on Agri financing.”
Talking about the agreement with SBI, Mr.Sandeep Sabharwal, Group CEO, SLCM said,” It is a matter of pride that country’s largest Bank, SBI has posed faith in the best-in-class scientific warehousing services of SLCM. We are the only company in the warehousing space which uses a proprietary technology called “AGRI REACH”, for which patent is pending. In a country like India where post harvest losses are pegged at 10%, our AGRI REACH has cut the post harvest losses to 0.5% irrespective of infrastructure, crop or geographic location. (Accredited by FICCI in their Study).This agreement with SBI will further consolidate our position as a market leader in scientific warehousing with demonstrated track record of preventing post harvest losses.”
As part of the agreement, SLCM will manage the quantity and quality of the collateral and the commodities will be stored in licensed & non-licensed warehouses.