SLCM inks pact with SBI for collateral management

Agri services solutions provider Sohan Lal Commodity Management (SLCM) Friday entered into an strategic partnership with the State Bank of India for collateral management and warehousing services. Under the agreement, SLCM will act as the custodian of the commodities which bank has taken as a security against the loans issued by it, a release said.

SLCM will manage the quantity and quality of the collateral and the commodities will be stored in licensed and non-licensed warehouses, it added. "We have entered into an agreement for collateral management services with SLCM. This agreement with SLCM underscores the importance of agribusiness and agri infrastructure for SBI," SBI said.

As part of the agreement, SLCM will manage the quantity and quality of the collateral, which will help in mitigating the risk for the bank, it added..