The Hindu Business Line : Nabard sees borrowings at Rs 14,000 cr

Ms Ranjana Kumar, Chairperson, Nabard, and Mr Y.S.P. Thorat, Managing Director, addressing a press conference in Mumbai on Wednesday. - - Shashi Ashiwal

Mumbai , April 6

NABARD is targeting disbursement of Rs 9,000 crore in investment credit and Rs 12,000 crore in production credit during 2005-06, said Ms Ranjana Kumar, Chairperson.

Investment credit is given for capital expenses and production credit for meeting farm expenses.

During 2004-05, Nabard disbursed Rs 8,577.46 crore as refinance for investment credit, recording a growth of 12.86 per cent over the previous year's figure of Rs 7,605.29 crore.

Refinance for production credit constituted the sanctioning of Rs 10,891.10 crore to co-operatives and RRBs in 2004-05 for both seasonal agricultural operations (crop loans) and others, against Rs 9,864.48 crore in 2003-04.

Utilisation during the period stood at Rs 8,541.85 crore against Rs 6,432.78 crore during the corresponding previous period.

In addition, Rs 1,666.23 crore was sanctioned to co-operative banks and RRBs towards liquidity support against rescheduling of loans for farmers in distress, and arrears.

The total sanctions aggregate Rs 12,557.33 crore. Against this, the utilisation by banks under the normal short-term credit limits and liquidity support scheme aggregate Rs 9,349.95 crore.

Nabard is expected to go in for market borrowings in excess of Rs 14,000 crore during the current fiscal, said Ms Ranjana Kumar.

"Our borrowings may be higher depending on whether we can get a subvention from the Central Government this year."

During 2004-05, Nabard mobilised Rs 10,636.50 crore from the markets through capital gains bonds, priority sector bonds, non-priority sector bonds and corporate borrowings, compared to Rs 7,861 crore earlier.

The size of the balance sheet is expected to be to the tune of Rs 61,000 crore against Rs 55,889 crore previously.

Nabard is expected to report a profit of Rs 1,300 crore for 2004-05 against Rs 1,460 crore in 2003-04. The lower profits can be attributed to its decision permitting pre-payments and resetting of outstanding investment credit refinance and allowing flexible limits to SCBs for sanction of short-term loans and reduction in refinance interest rates in the beginning of the year.

During 2004-05, around 3.7 lakh new self-help groups (SHGs) were credit-linked with banks against the target of 1.85 lakh set by the Government. Nabard provided refinance aggregating Rs 1,006 crore, against Rs 705.44 crore for 2003-04, for supporting 2,16,051 SHGs.

The cumulative number of SHGs credit-linked with banks increased to 14,26,354 as on March 2005 from 10,79,091 as on March 2004.

Cumulative bank loan disbursement and refinance support aggregated Rs 5,674 crore and Rs 3,130 crore respectively. The number of poor families benefited through SHGs increased to over 2.14 crore from 1.67 crore as on March 31, 2004.

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