The Hindu Business Line : Three banks to pick up stake in MCX

UNION Bank of India (UBI), Corporation Bank and Bank of India have given their in-principle approval to pick-up two per cent equity stake each in Multi Commodity Exchange of India Ltd (MCX) as equity partners.

"We are confident that this landmark will bring substantial intensity and thrust to the Indian commodities and agriculture markets. Proactive participation from national level banks will boost our efforts to create greater opportunities for the introduction of more innovative financial products and services for the agriculture and commodities industry to benefit from," Mr Jignesh Shah, Managing Director, MCX said, in a release.

"We are picking up two per cent stake in MCX. Since it's a new opportunity with great potential, we are going to increase our presence in the commodity business in the near future,'' the Corporation Bank Chairman and Managing Director, Mr Cherian Varghese, said.

Commenting on the future plans, Mr V. Leeladhar, CMD, Union Bank of India, said, "The bank has participated in the equity of MCX, to the extent of two per cent of its authorised capital. We had detailed discussion into the management of MCX, on the emerging opportunities in the commodity market and look forward to our active involvement in this particular area.''

The three banks have also decided to take up the Professional Clearing Membership on the exchange. With this membership in place these banks will offer clearing functions to the trading members of MCX.

The banks together have 7,000 plus branches across the country, which along with 1,000 plus terminals of MCX will enable the exchange and the banks to cross-sell products and services.

More Stories on : Commodity Exchanges | Public Sector Banks

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