PBHCL is currently working with multiple banks as their Collateral Manager for Warehouse Receipt Financing. The company provides best-in-class audit and security services as part of collateral management services to the banks & other financial institutions.
Financial constraints owing to the lack of liquidity are a major challenge in unlocking the potential of the agriculture sector in emerging economies. This not only limits the farmer’s ability to compete but also exposes the vulnerability of agriculture to sudden and dramatic changes in food prices
In this kind of warehousing service, Banks approach PBHCL to be the custodian of given commodity in a particular warehouse. Agriculture commodities are stored in PBHCL warehouse which actually is the security of the loan for the respective bank. These commodities pertain to identified client by bank in the form of collateral securities. Collateral Financing allows lenders to immediately sell off a liquid asset i.e. agriculture commodity, if a farmer defaults on the loan.
PBHCL is committed to addressing these constraints by going beyond conventional measures. For example, Warehouse Receipts financing will improve the availability of secure, low-cost credit by directly easing collateral constraints whilst enhancing the risk profile of farmers. We aim to foster improvements in output markets to help farmers realize higher incomes.
PBHCL has partnership with following banks in India: