With Nabard’s resources set to get augmented substantially following Parliament’s nod to a six-fold increase in its authorised share capital to ₹30,000 crore, the development financial institution (DFI) is eyeing a balance sheet size of ₹7 lakh crore by 2023 against ₹3.90 lakh crore now.

The rural India focussed DFI plans to achieve this balance sheet size by stepping up focus on providing support to irrigation projects, dairy farming, improving market infrastructure in rural areas (so that farmers get remunerative prices for their produce), enhancing credit flow to deprived areas such as central and eastern States, and support to rural housing.

Harsh Kumar Bhanwala, Chairman, Nabard, said the increase in authorised capital will help the paid-up capital to go up to ₹9,600 crore from ₹4,700 crore. This will be on account of the transfer of share capital deposit (amounting to ₹4,900 crore with Nabard) to paid-up capital. “The increased capital will enable Nabard to leverage higher borrowings. Among ‘AAA’ rated companies, we are the cheapest borrower,” said Bhanwala.

With the institution adding about ₹750 crore every quarter to its reserves, coupled with the balance ₹600-crore capital infusion expected from the government, Nabard’s net owned funds position will strengthen to ₹37,300 crore by March-end 2018 from ₹35,800 crore now.

Bhanwala said loan approvals to existing co-operative dairies from the ₹8,000-crore Dairy Processing & Infrastructure Development Fund will happen from March 2018.

The Nabard chief emphasised that creation of market infrastructure, including warehouses, electronic weigh bridges, assaying laboratories, and roads in rural markets, is important for agriculturists. He assessed that each Agriculture Produce Market Committee and primary market may require an investment of about ₹5 crore each to achieve this objective.