Financial Daily from THE HINDU group of publications
Wednesday, Apr 09, 2003
Financial Daily from THE HINDU group of publications Wednesday, Apr 09, 2003 |
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Money & Banking
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Agricultural Institutions Banks draw less refinancing from Nabard Our Bureau
MUMBAI, April 8 AGGREGATE sanctions by National Bank for Agriculture and Rural Development (Nabard) to various banks and State governments increased by 7.3 per cent to Rs 22,696.01 crore as on March 31, 2003 from Rs 21,145.65 crore in the previous year. The total sanctions include investment credit, sanctioned short-term loans and rural infrastructure development fund sanctions. Disbursements increased marginally for the year to Rs 18,378.65 crore from Rs 17,954.71 crore. Investment credit availed of by co-operative banks, commercial banks and regional rural banks registered an increase of 11 per cent to touch Rs 7,418.71 crore (Rs 6,683 crore). This figure is representative of aggregate disbursements for both farm and non-farm assets. Due to abundant liquidity with commercial banks, refinance availed of by them decreased to Rs 1,242 crore from Rs 1,608 crore in the previous year. However, "there has been substantial increase in finance for rural housing at Rs 749 crore (Rs 500 crore), irrigation projects at Rs 873.10 crore (Rs 691 crore) and to self-help groups at Rs 623.39 crore (Rs 397 crore)," said Mr Y.C. Nanda, Chairman, Nabard, at a press conference here on Tuesday. This year, Nabard is expected to see its spreads shrink slightly, while surpluses are expected to touch Rs 1,500 crore (Rs 1,480 crore) as balance-sheet size expands to Rs 50,000 crore from Rs 45,000 crore. As part of drought relief work, it has provided support to banks to the tune of Rs 450 crore and is expected to provide another Rs 2,000 crore over the next three months to convert short-term loans of affected farmers into medium-term loans. As part of future plans, Nabard aims to reach 10 lakh groups through its self-help group programme by 2007. At present, it has 7 lakh groups availing unsecured credit under this initiative. Asked about Nabard's co-financing efforts with commercial banks, Mr Nanda told presspersons "projects are coming in from mainly storage, forestry and bio-fuel sectors and things should be on the roll shortly". Nabard has recently tied up with five public sector banks for co-financing of projects.
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