NABARD to raise Rs 50,000 crore this fiscal
MUMBAI: Agriculture lender Nabard plans to raise Rs 50,000 crore in the current fiscal, up from Rs 40,000 crore it raised in 2016-17 as it aims to achieve the government's Rs 10 lakh crore target lending for agriculture by the fiscal ending March 2018.
The bank which also has a mandate to facilitate rural development will also lend for rural housing projects under 'PM Awas Yojana'.
Besides, borrowings from the market, Nabard also gets funds through Rural Infrastructure Development Fund or RIDF in which banks that have failed to meet their priority sector lending target in agriculture have to invest the shortfall and funds through budgetary support from the government.
The agri-lender’s loans and advances rose 12.16% to Rs 3.08 lakh crore duing the financial year ending March’17 and reported 4.24% rise in net profit to Rs 2,631 crore.
The lender has seen a rise in demand for agricultural loans even as banks have been struggling to see any loan demand in general. "We have seen an uptick in ground level credit flow to agriculture by banks which has increased to 24% from 19% in the last three years mainly because of a push by the government and also demand for loans for allied activities like mechanisation and horticulture,” said Harsh Kumar Bhanwala, chairman Nabard. "Against the government target for credit of Rs 9 lakh crore we have done Rs 9.5 lakh crore" he added.
Of the total loans, about one third was long-term loans lent to irrigation projects of 18 months or more and the balance being short-term crop loans of less than 18 months. NABARD disbursed Rs 9,000 crore to finance long term irrigation projects particularly to projects where work was still in progress.
In its drive to extend the banking services in unbanked areas, Nabard sanctioned support for 2.05 lakh PoS-point of sales- devices covering more than 82,000 village with population less than 10,000, where Nabard gives a financial support of Rs 6000 per PoS.
For FY18, Nabard plans to increase its lending to over Rs 10 lakh crore. It will also refinance between Rs 7,000 crore to Rs 10,000 crore through a government owned special purpose vehicle (SPV) for the Pradhan Mantri Awas Yojana (PMAY). The government has earmarked Rs 3,500 crore as capital for Nabard in FY’18 versus Rs 1,400 crore last year.
Nabard will also refinance between Rs 7,000 crore to Rs 10,000 crore through a government owned special purpose vehicle (SPV) for the Pradhan Mantri Awas Yojana (PMAY).
The bank which also has a mandate to facilitate rural development will also lend for rural housing projects under 'PM Awas Yojana'.
Besides, borrowings from the market, Nabard also gets funds through Rural Infrastructure Development Fund or RIDF in which banks that have failed to meet their priority sector lending target in agriculture have to invest the shortfall and funds through budgetary support from the government.
The agri-lender’s loans and advances rose 12.16% to Rs 3.08 lakh crore duing the financial year ending March’17 and reported 4.24% rise in net profit to Rs 2,631 crore.
The lender has seen a rise in demand for agricultural loans even as banks have been struggling to see any loan demand in general. "We have seen an uptick in ground level credit flow to agriculture by banks which has increased to 24% from 19% in the last three years mainly because of a push by the government and also demand for loans for allied activities like mechanisation and horticulture,” said Harsh Kumar Bhanwala, chairman Nabard. "Against the government target for credit of Rs 9 lakh crore we have done Rs 9.5 lakh crore" he added.
Of the total loans, about one third was long-term loans lent to irrigation projects of 18 months or more and the balance being short-term crop loans of less than 18 months. NABARD disbursed Rs 9,000 crore to finance long term irrigation projects particularly to projects where work was still in progress.
In its drive to extend the banking services in unbanked areas, Nabard sanctioned support for 2.05 lakh PoS-point of sales- devices covering more than 82,000 village with population less than 10,000, where Nabard gives a financial support of Rs 6000 per PoS.
For FY18, Nabard plans to increase its lending to over Rs 10 lakh crore. It will also refinance between Rs 7,000 crore to Rs 10,000 crore through a government owned special purpose vehicle (SPV) for the Pradhan Mantri Awas Yojana (PMAY). The government has earmarked Rs 3,500 crore as capital for Nabard in FY’18 versus Rs 1,400 crore last year.
Nabard will also refinance between Rs 7,000 crore to Rs 10,000 crore through a government owned special purpose vehicle (SPV) for the Pradhan Mantri Awas Yojana (PMAY).
