PNB signs contract with warehouse to finance against e-NWR

The Punjab National Bank (PNB) and the Warehousing Development & Regulatory Authority (WDRA) on Monday signed an agreement to promote financing against e-NWR (Electronic Negotiable Warehousing Receipt).

The partnership will provide farmers with information about e-NWR, a negotiable instrument, and undertake outreach to improve farm pledge funding in India.

The Reserve Bank of India (RBI) increased the limit on lending to NWRs/eNWRs from Rs.50,000 to Rs.75,000 per borrower two years ago. The central bank aimed to encourage loans to farmers against receipts issued by warehouses registered and regulated by the state’s WDRA.

e-NWR funding prevents farmer distress sales and helps them get better prices for their produce. It has advantages such as an increase in the registration of camps, as the issuance of e-NWR can only occur when scientific camp standards set by WDRA are met.

The two sides signed a Memorandum of Understanding (MoU) in the presence of Atul Kumar Goel, Managing Director and Chief Executive Officer of PNB, and TK Manoj Kumar, Chairman of WDRA.

PNB reported its standalone net income fell 44.2 percent yoy (YoY) to Rs.628.9 crore in the October-December (Q3) quarter as provisions for non-performing assets (NPA) rose 7 percent yoy Rs 3,908 crore and staff costs under operating expenses increased 34.7 per cent year-on-year to Rs 4,460 crore.

The State Bank of India (SBI) signed a MoU with WDRA in January to support the funding of e-NWR.

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