Public sector lender Union Bank of India today said it has entered into an agreement with National Collateral Management Services Ltd to avail the latter's services in its new scheme to extend credit against warehouse receipts.     

This is in addition to an existing tie-up with National Bulk Handling Corporation for similar services.     

Union Bank has launched a special scheme to extend credits against warehouse receipts with an objective to providing credit on competitive rates to food and agro-based units, a the bank stated here.     

NCMSL will provide collateral management services to the commodities pledged to the bank including ensuring quantity and quality of the commodities pledged, it said.     

The arrangement is expected to help the bank ensure better credit quality.

Read Business news in  Advertisements   Your dream home can now be a reality.   Visit Fortis for a preventive health check-up & get a 20% discount.   Follow the ups and downs of your investments. Try our new Portfolio Tracker   Kolkata Dock \ Freight contract for the British Gurkhas Nepal   Find how Midsize Businesses use ERP to gain competitive advantage   Trading in Forex is now as easy as 1-2-3   Discover an economical and cost effective way to market your products and services   Giftwithlove.com: Same day delivery of Flowers and Cakes to India   Download the E-book on the Future of Business Intelligence   Learn Best Practices for improving customer satisfaction   Know your customers better... download the free e-book on CRM