Agri-logistics firm National Collateral Management Services Ltd (NCML) today said it has started non-banking finance company, NCML Finance Ltd, with an initial equity capital of Rs 335 crore.
NCML is the leading agri-logistics and services player with pan India presence in supply chain management, warehouse services, collateral management, testing and certification and weather intelligence.
In a statement, NCML said it has "launched wholly owned subsidiary, NCML Finance Pvt Ltd (NFin). NFin is an RBI registered Non-Banking Finance Company (NBFC) with focus on rural and agri-business finance".
"The NCML Board has committed an equity of Rs 3,350 million (USD 50 million) to NFin," it added.
The large equity commitment has been made possible through the full support and backing from Fairfax India, which has majority ownership and management control of NCML.
This makes NFin one of the few NBFCs to begin operations with such a large capitalization, NCML said.
While NFin intends to offer a complete suite of financial products in the agri and rural domain going forward, it will initially start its operations by offering loans against warehouse receipt for commodities kept in custody of NCML as a warehouse man and collateral manager.
NCML said it has realised that despite the presence of numerous financial entities in the rural and agri value chain, the small and marginal farmer segment remains quite under- penetrated.
Promoted initially by NCDEX, IFFCO, and banks like PNB, KVB, Corporation Bank and Indian Bank, Fairfax India has now acquired majority control of NCML.
PNB, Corporation Bank, Bank of India, and Hafed continue to be shareholders of NCML, which was incorporated in 2004.
PTI MJH AA BEN NRB .
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
