NBHC managed stock at five godowns of pre-stored commodities for the troubled National Spot Exchange Ltd (NSEL) only during June-July 2013, and no warehouse receipts were issued by NBHC against this stock, it said in a statement.
The assignment was just to manage the warehouses. NBHC returned the warehouses to NSEL in August along with the balance stocks. As of date, NBHC carries stocks worth Rs 65 lakh on behalf of NSEL, the statement said.
Across various locations in 19 states, NBHC manages about Rs 5,500 crore worth of stocks as of now, out of which about Rs 4,200 crore of stocks are funded by banks to respective commodity owners, (farmers, processors, traders etc) after the respective bank's independent audit and due diligence.
NBHC manages warehouses/storage facilities for about 42 banks. It also provides storage facilities to corporates, farmers, processors, traders, among others. It acts as a warehousing service provider for MCX, which accounts for about 5-7 percent of NBHC's total stock usually, the statement said.
NBHC claimed it has managed commodities worth about Rs 50,000 crore over the last 5-6 years through its elaborate and stringent continual internal audits. Frequency of audit inspection is decided on risk weightage assigned to each warehouse.
Cumulatively, banks have lent about Rs 35,000 crore against NBHC's warehouse receipts of about Rs 50,000 crore. Of this, loans worth about Rs 32,000 crore have been repaid in the past 6-7 years, the statement said.
Following the Rs 5,600 crore payment crisis at NSEL, most of the banks have conducted audits of their stocks in NBHC's warehouses and no deviations have been found, it said.
All NBHC's clients are from the commodity space, and are quite familiar with the ecosystem of commodity warehousing.
NBHC said clients could visit the warehouses and check their stocks. PTI AP NSK JTR MKJ SA 09052048