• Total refinance disbursement stands at Rs 2.23 lakh crore, a 25% growth Y-o-Y basis
• Disburses a whopping Rs 65,746 crore towards rural infrastructure development.
• Establishes subsidiary to give default guarantee against bank loans to FPOs.
• Operationalised Rural Infrastructure Assistance Scheme (RIAS) for infrastructure development in Eastern States
Mumbai, April 06, 2021: The National Bank for Agriculture and Rural Development (NABARD) today announced its financial results for FY 2020-21. In the context of the distress caused to the economy by the seemingly irrepressible Covid-19 pandemic, the performance of the DFI stands out due to a slew of effective and timely measures.
The balance sheet of NABARD has grown to Rs 6,57,486 crore in size for the fiscal 2021, compared to Rs 5,32,075 crore for FY 2020, registering a growth of 24%. The loans and advances of the development bank has grown from Rs 4,81,514 crore to Rs 6,03,000 crore, a significant increase of 25% in a year affected by the outbreak of Covid-19 pandemic. Further, the borrowings of the bank increased to Rs 3,17,540 crore from Rs. 2,06,423 crore during the corresponding period.
DEVELOPMENT AND OPERATIONAL INITIATIVES
NABARD registered a total refinance disbursement of Rs 2.23 lakh crore to support agriculture and rural development activities during the pandemic. This works out to a significant growth of 25% over the previous year.
Under Aatmanirbhar Bharat Abhiyan, NABARD disbursed Rs 16,800 crore to Cooperative Banks, Rs 6,700 crore to RRBs and Rs 2,000 crore to NBFC-MFIs through a Special Liquidity Facility (SLF). It also provided additional SLF of Rs 1,567 crore to NBFC-MFIs with asset size of less than Rs 500 crore to help the smaller players withstand the pandemic pressure.
In a move to boost economic activities, concessional bank refinance scheme to the tune of Rs 5,000 crore was launched for lending to beneficiaries in the 2150 watershed development projects of NABARD. Further, a refinance facility of Rs 500 crore was introduced to support Government of India’s Water, Sanitisation and Hygiene (WASH) programme.
In another promising initiative, under Government of India’s Agriculture Infrastructure Fund (AIF), NABARD announced earmarking of Rs 5,000 crore during FY 2020-21 for converting PACS into multi service centres (MSCs), which act as one-stop shops for meeting the varied needs of the farmers. As many as 35,000 PACS would be upgraded to MSCs by the end of FY 2022-23. So far, 3055 PACS have been given in-principle sanction with estimated project cost of Rs 1760.82 crore and estimated bank loan of Rs 1568 crore by NABARD.
Continuing with its thrust on building agricultural and rural infrastructure, NABARD disbursed a whopping Rs 65,746 crore during the year towards Rural Infrastructure Development Fund (Rs 27,831 crore), NABARD Infrastructure Development Assistance (Rs 7,506 crore), Long Term Irrigation Fund (Rs 7,761 crore), Pradhan Mantri Aawas Yojana – Gramin (Rs 20000 crore), Micro Irrigation Fund (Rs 1,827crore) and Warehouse Infrastructure Fund (Rs 825 crore).
NABARD operationalised Rural Infrastructure Assistance Scheme (RIAS) with a corpus of Rs 15000 crore exclusively for eastern states to develop infrastructure towards having a circular economy, keeping in view the reverse migration during the pandemic and subsequent lockdown. The scheme will take off during 2021-22.
Support for Procurement
With a view to ensuring farmers obtained MSP for their produce, NABARD strengthened the procurement operations of various state governments by sanctioning Rs 40,160 core and disbursing Rs 47852 crore to various state civil supplies corporations, and marketing federations during the year.
Over the years, NABARD has emerged as a leader in promotion and nurturing FPOs and creating enabling ecosystem for their sustainability. NABARD had set up dedicated Funds, viz., Producers Organization Development Fund and PRODUCE and so far promoted 4878 FPOs. During 2020-21, NABARD promoted 394 FPOs and provided grant assistance of Rs 38.41 crore leading to a cumulative grant support of Rs 244.40 crore. In addition, NABARD is also the leading Implementing Agency under Central Sector Scheme of 10000 FPOs and would promote 4000 FPOs in 5 years. During 2020-21, NABARD sanctioned 300 FPOs with grant of Rs 75 crore.
Moreover, in line with the concept of FPOs, NABARD has cumulatively supported 40 Off Farm Producer Organisations (OFPOs) across 20 states under various clusters.
NABARD also entered a new domain of credit guarantee management by establishing NABSANRAKSHAN Trustee Private Limited (NTPL), a fully owned subsidiary of NABARD, under Indian Companies Act, 2013 with an authorised share capital of Rs 100 crore and paid up share capital of Rs 50 crore. Currently, the subsidiary will be handling Guarantee Funds in respect of Animal Husbandry Infrastructure Development Fund and FPOs.
NABARD is also making efforts to improve the infrastructure of Cooperatives by assisting PACS computerisation and setting up of Business Development cells in as many as 17 states.
NABVENTURES Ltd., a subsidiary of NABARD that funds agricultural start-ups, completed five deals aggregating to Rs 63 crore during the year. The funding was extended to start-ups operating in the domains of agri-tech, IoT, etc. NABVENTURES received a commitment of Rs 170 crore during the year (SIDBI: 100 crore, LIC: 50 crore, BIRAC: 10 crore and Union Bank of India: 10 crore) for its fund NABVENTURES FUND-I with a total corpus of Rs 500 crore.
Another subsidiary NABKISAN also complemented NABARD’s efforts in formation and nurturing of FPOs by sanctioning credit facilities to the tune of Rs 108 crore to 365 FPOs both directly and indirectly. Cumulatively, NABKISAN has supported 675 FPOs directly and 400 FPOs indirectly so far and in the process carved out a niche for itself as the largest lender in the FPO ecosystem.