| |
|
Chairman,
YC Nanda and Managing Director, M V Chalapathi Rao
|
For
the National Bank for Agriculture and Rural Development (Nabard),
the year 2001-02 has been a good one. The aggregate financial support
provided to commercial and cooperative banks, regional rural banks
and the state governments crossed the Rs 20,000 crore mark and the
aggregate disbursement under investment credit grew at 8.5 per cent.
At a press conference to announce the bank’s performance, Chairman
Y C Nanda said, “ Despite the high liquidity with commercial banks,
the reason many borrowed was that they see Nabard as a long term source
of finance.”
Resource
Mobilisation
The markets have been Nabard’s main source for raising fresh funds.
Of the total Rs 2548 crore that was mobilised during the year, Rs
1775.5 crore came from Capital Gains Bonds and Rs 773 crore were raised
through Priority Sector Bonds. The funds raised through Capital Gains
Bonds were at a competitive rate of 7 per cent.
Borrowings from the market were in the range of Rs 2700 crore to Rs
3000 crore. Rs 4500 crore-Rs 5000 crore came from the banking sector
and Rs 6500 from the RBI. Being a refinance institution, Nabard has
no Non-Performing Assets (NPAs).
Discussing
the possibilities for new resources, Chairman Nanda said, “We are
having a discussion with the government to tap new sources. We have
to have special instruments. Being primarily a refinance institution
with no retail outlets, we should be able to mobilise finance at a
rate lower than the banking sector.” He added, “ We are better suited
to reign in long term resources.” Nabard’s good performance during
2001-02 was possible even though it now has a tax liability. The bank
had to cough up Rs 395 crore as tax. This year too the tax liability
is expected to be in the same range.
Diversification
plans
|
PERFORMANCE
HIGHLIGHTS
|
|
Operation
|
2000-2001
(Rs Cr)
|
2001-2002
(Rs Cr)
|
| Support
to clients |
19518
|
21146
|
| Investment
credit |
6158
|
6682.8
|
|
RIDF (drawals) |
3176.9
|
3790.3
|
| Rural
Non-farm sector |
1020.2
|
1128
|
| Resource
mobilisation |
1472
|
2548
|
The
bank’s diversification plans are yet to pick up pace. Insurance is
one new area that the bank is considering. The rationale according
to Nanda is,” Rural areas are not being adequately covered and we
feel there is need for insurance there.”
Nabard
does not consider direct credit an attractive proposition as it brings
with it the problems of NPAs. However, Nanda said,” We may get into
direct finance of special projects like godowns and agri export zones.”
It would be worthwhile but we have to be cautious,” he added.
