The National Bank for Agriculture and Rural Development (Nabard) on Tuesday announced a 24% growth in its balance sheet to a record level of Rs 6.57 lakh crore during the fiscal year ended March 31, 2021.
In fiscal year 2019-2020, his balance sheet stood at Rs 5.32 lakh crore.
“In fiscal year 2020-21, we gave a stellar performance. We closed the business at Rs 6.57 lakh crore, recording a growth rate of 23.5%. This is a historic record, “Nabard chairman GR Chintala told reporters.
The business growth has been aided by various programs announced by the government, the overhaul of processes and products carried out by the institution and also by the fact that it has encouraged clients, institutions and state governments to profit as much. as possible of the advantages of the programs for faster developments, he mentioned.
“For fiscal years 2021-22, we have set the size of our balance sheet at Rs 7.5 lakh crore,” said Chintala.
The bank’s borrowings have increased from Rs 3.18 lakh crore to Rs 2.06 lakh crore during the corresponding period, and for fiscal year 2022, it plans to borrow close to Rs 3.7 to 3.9 lakh crore in the market, he said.
Its net interest margins (NIM) were 1.72% and the capital / risk (weighted) asset ratio (CRAR) was 20.92%. Gross NPA stood at 0.21 percent, almost the same as last year. Net NPAs were at zero percent, Chintala said.
Development bank loans and advances increased from Rs 4.81 lakh crore to Rs 6.03 lakh crore, a significant increase of 25%. The total refinancing disbursement made by it amounted to Rs 2.23 lakh crore, a growth of 25% compared to 2019-2020. Under Aatmanirbhar Bharat Abhiyan, Nabard disbursed Rs 16,800 crore to cooperative banks, Rs 6,700 crore to rural regional banks (RRB) and Rs 2,000 crore to NBFC-MFIs through a special liquidity facility (SLF). NABARD disbursed Rs 65,746 crore 2020-21 for the construction of agricultural and rural infrastructure. Disbursements were made to 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 20,000 crore), Micro Irrigation Fund (Rs 1,827 crore) and Warehouse Infrastructure Fund (Rs 825 crore).
Chintala said that despite the Covid-19 pandemic, the institution carried out 100% inspections of regional rural banks. According to the inspection, of the 43 RRBs, 23 are in very good condition, he said.
Asked about the consolidation of RRBs, Chintala said, “The one-state-a-RRB kind of thinking is already sinking everywhere, but I’m not saying the decision (on this) has been made.” Speaking of microfinance institutions (MFIs), he said that in the first months of FY21 foreclosure, the collections and activities of micro-lenders have been affected. “From August (2020), the efficiency of collection (of MFIs) started to improve. Today, most MFIs have a collection efficiency of 95 to 96 percent, ”said Chintala.
During the period 2020-2021, Nabard promoted 394 Agricultural Producer Organizations (OPAs) and provided financial assistance of Rs 38.41 crore leading to a cumulative grant of Rs 244.40 crore. In addition, it is also the main executing agency under the central 10,000 FPO sector program and would promote 4,000 FPO in 5 years. In the previous fiscal year he sanctioned 300 FPO with a grant of Rs 75 crore.
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