Released on = July 19, 2007, 4:12 am

Press Release Author = National Bulk Handling Corporation Ltd.

Industry = Agriculture

Press Release Summary = Two of India's leading public sector banks, IDBI Bank Ltd
and State Bank of Patiala, joined hands with National Bulk Handling Corporation Ltd.
(NBHC), a Financial Technologies Group Company, for warehouse receipt financing
solutions

Press Release Body = For immediate release

July 19th, 2007: Two of India's leading public sector banks, IDBI Bank Ltd and State
Bank of Patiala, joined hands with National Bulk Handling Corporation Ltd. (NBHC), a
Financial Technologies Group Company, for warehouse receipt financing solutions.

NBHC is an ISO 9001:2000 and ISO 22000:2005 certified company providing solutions
for a complete commodity and collateral management. NBHC will work as collateral
manager with the two banks to provide farmers with hassle-free and economical access
to credit.

Mr D.K Kamble, Chief General Manager of the priority sector department, signed the
agreement on behalf of IDBI Bank with Mr. Anil Choudhary, MD and CEO of NBHC, while
Mr GP Kantia, DGM of priority sector advances, inked the agreement with Mr Choudhary
in the presence of Mr A C Varma, MD, on behalf of State Bank of Patiala.

A product of favorable policy environment, warehouse receipt financing as an agri
credit option is gaining momentum. NBHC has been appointed collateral manager by
both IDBI Bank and State Bank of Patiala to fund farmers, corporates, processors,
etc. As collateral manager, NBHC will shoulder the responsibility of stock pledged
with the banks for quality and quantity.

Speaking on the occasion, Mr. Anil K. Choudhary said, "We are extremely happy to
sign the collateral management agreements with IDBI Bank and State Bank of Patiala,
both leading banks in the agricultural finance sector. With the widespread network
of the banks, NBHC, IDBI Bank and State Bank of Patiala can provide a great extent
of financial flexibility to farmers, reducing the seasonal price fluctuations and
distress sales during the crop harvest season."

NBHC's over 250 warehouses and IDBI Bank's network of over 434 branches will be a
captivating combination in reaching out to maximum number of customers in this
segment on an immediate basis.

"There is a vast potential of lending in the agri-sector through warehouse receipt
financing. Tying up with NBHC will help IDBI Bank increase the agri-portfolio by
building quality assets in agri-lending. NBHC, through its expertise in commodity
handling, in turn, will help IDBI Bank mitigate the risks associated with commodity
financing," said D.K. Kamble. "IDBI Bank, with its recent acquisition of United
Western Bank, now operates through a network of 434 branches, 18 extension counters
and 529 ATMs spread across 255 cities in India. It has thus spread its wings to
semi-urban and rural India, which will help it build a robust agri-portfolio.\"

After passage of the Warehouse (Regulations and Development) Bill, 2005, warehouse
receipts will soon get negotiable status. This decision will have a positive impact
on warehouse receipt financing. The beneficiaries will be farmers and banks. The
futures commodity market is growing rapidly. Based on this, commercial banks are
devising customised schemes to fund traders and farmers against the stock stored in
commodity exchange warehouses. When banks give finance against the commodity, the
commodity remains in their custody in warehouses supervised by collateral managers.


NBHC offers a comprehensive & proactive collateral risk management mechanism that
provides complete protection to the commodity. NBHC assures banks of maintaining
quality and quantity of the commodity. It is expected that agri-lending through
warehouse receipts will touch Rs. 20-22 billion over the next 4-5 years.

At present, NBHC manages more than 1 million MT of commodity under the collateral
management spread over 1200 warehouses. Commenting on the growth of NBHC, Mr.
Choudhary said, "This has been possible because of our professional approach,
integrity and transparency in dealings and putting best practices in place." He
added, "We follow a set of globally benchmarked practices and standards to help NBHC
deliver low-cost, low-risk, and value-enhancing collateral management services."

Web Site = http://www.nbhcindia.com

Contact Details = Ravi Muthreja
Head Communications
Multi Commodity Exchange of India Ltd.
Phone No.: +91 22 66497000
Mobile No.: +91 9867726000
Email: Ravi.muthreja@mcxindia.com