Delhi-based Agri Services Solutions Company, Sohan Lal Commodity Management Pvt. Ltd. (SLCM) on 26th July 2019 has entered into an agreement with the State Bank of India (SBI) for collateral management & warehousing services.
As part of the accord, Sohan Lal Commodity Management Pvt. Ltd. will work as custodian of the commodities that the SBI has taken as a security against loans, according to a press statement. The Memorandum of Understanding or MoU was signed by DGM of SBI, Mr. Ved Prakash and Chief Business Officer of SLCM, Mr. Ankur Jaipuria.
Mr. Prakash after signing the pact said, “We have entered into an agreement for collateral management services with SLCM, a firm known for providing modern scientific warehousing & commodity testing services. This underlines the importance of agribusiness & agri infrastructure for the State Bank of India”. He added that the company will manage the quantity and quality of the collateral which will help in mitigating the risk for the bank. He said this joint venture with SLCM will further deliver value to all our stakeholders and is in line with the Bank’s focus on Agri financing.
Chief Executive Officer of SLCM Mr. Sandeep Sabharwal said the pact with India’s largest bank will consolidate the company’s position as market leader in scientific warehousing. He said, its patent-pending commodity warehousing solution, AGRI REACH has already shown to reduce post harvest losses that are otherwise at 10%, to 0.5% regardless of infrastructure, crop / geographical location.
As part of the deal, the company will manage the quantity as well as quality of the collateral & the commodities will be kept in licensed and non-licensed warehouses.
