Karnataka Bank has entered into a memorandum of understanding (MoU) with CNX Corporation Ltd (CCL) for extending storage facilities to farmers and finance against warehouse receipts (WHR).
A press release from the bank said here on Friday that CCL is one of the collateral management service providers with a pan-India presence.
Finance to farmers will be extended under the 'Krishik Bhandar' scheme of the bank. CCL has nominated Karnataka Bank as preferred financier for extending finance to farmers against the WHR, it said.
"This is one more credit initiative from Karnataka Bank, which mainly helps the farmer community store its agriculture produce by avoiding distress sale, earn a better price and simultaneously avail of loans for further agriculture operations," P Jayarama Bhat, Managing Director and CEO of the bank, said in the release.