Punjab National Bank has entered into a Memorandum of Understanding (MoU) with LTC Commercial, one of the leading post-harvest solutions and warehouse management Services Company in India. Under this MoU PNB, through warehouse receipts issued by LTC, will cater to the needs of MSMEs and farmers by providing financing against pledge of agricultural commodities. The MoU has been signed on a pan-India basis; however, given LTC's distribution strength and PNB's focus on increasing its reach to undeserved areas, there will be a significant focus in Northern India.
Rajesh Saraswat, MD of LTC Commercial Company, said, "Availing Punjab National Bank's quick finance facility at its pan India network for farmers with low interest rates will definitely help them to reap benefits on their produce lying into warehouses. PNB has ensured a minimum paper work and quick disbursement of finance in 24 hours timeline for farmers' benefit."
LTC is a more than two decade old company is actively working towards safeguarding the interest of the farmers to provide modern scientific method enabling them in implementing better farm practices. LTC is also a warehouse services provider for NCDEX exchange.
SS Bhatia, GM, MSME, PNB, said, "This Initiative would help change the dynamics of commodity supply chains at the farmers, aggregators, processors, traders and exporters level as this will provide them freedom to decide the appropriate time to sell their product to get better price and protect the farmers from the hassles of distress selling. MSME financing would help create agriculture and allied infrastructure at rural level and would support farmers and MSME entrepreneurs.” PNB and the LTC are expecting a fresh business of Rs 1,000 crore under this tie up to next one year.