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K.V. Kurmanath

Hyderabad, July 17

As it completes 25 years of existence, the National Bank for Agriculture and Rural Development (Nabard), the apex refinance bank for credit needs in rural areas, is weighing options in direct financing to self-help group federations, co-financing and expanding its clientele base.

The thinking in the bank, according to a senior official, is that it should leverage its extensive network of 400 district offices to lend directly to SHG federations and village watershed committees. Direct financing could also be given to warehousing corporations and commodity exchanges.

Nabard, which started its operations in 1982 with a business of just Rs 1,000 crore, has grown to Rs 80,000 crore as on March 31, 2007. The bank held a national seminar recently here to take stock of the situation and discuss its future course of action. Some of the areas identified to make the bank vibrant include expanding the client base. Besides the cooperative banks, regional rural banks, the bank should look at covering organisations such as NBFCs and micro-finance institutions.

There was also a suggestion that the bank should look at co-financing option in the next few years that ultimately would help pave way for direct financing.

The bank also identified opportunities such as venture capital fund.

More Stories on : Credit Market | Agricultural Institutions | Rural Development

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