Money & Banking

'Nabard’s growth has few parallels among peers'

Vinson Kurian Thiruvananthapuram | Updated on November 25, 2017

The 32 years in the history of National Bank for Agriculture and Rural Development (Nabard) has demonstrated its eventful transformation from a fledgling aspirant to a leviathan development financial institution.

The growth in balance sheet size from ₹8,000 crore to over ₹2.5 lakh crore over this period has few parallels among peer institutions, according to Ramesh Tenkil, Chief General Manager, Nabard, Kerala.


He said this while speaking at a one-day seminar on ‘32 years of Nabard - Challenges and opportunities - Stakeholder perspective’ as part of its foundation day here on Thursday.

The institution has received unstinted support from parent Reserve Bank of India through participation in the share capital as well as managerial mentoring and organisational guidance.

Nabard has since earned a distinction in being not just formulating policies but also overseeing financing and development, promoting innovation, nurturing institutions, and supervising banks – all at one go.

Tenkil said that in doing this, Nabard has emerged as an inspirational model for other development financial institutions within the country and even abroad.


The various schemes pioneered by it for delivering financial services to the poor have received wide acclaim. The concepts of self-help groups and joint liability groups have boosted women empowerment.

Self-help groups and their bank linkage programme have been able to drive the idea of financial inclusion into rural hinterlands even in States with poor literacy record.

If imitation is the best form of flattery, and Nabard would be justifiably proud that its small pilot on micro-credit should have gone to trigger numberless clones countrywide, Tenkil said.

He also pointed to one other major transformation in the nature of its interventions in the rural and agricultural sectors in the country – from fight against poverty to promoting entrepreneurship.


Nabard was seized of the issues of providing long-term loans to boost investments in the agricultural sector as also transformation of producer collectives to producer organisations.

Nirmal Chand, Regional Director, Reserve Bank of India, Thiruvananthapuram, credited Nabard with success in piloting the core banking solution in cooperatives sector and driving financial inclusion.

But its capabilities would be tested while seeking to ensure raised level of capital adequacy in the sector as mandated by the Reserve Bank.

According to Chand, Union Budget 2014-15 sets great store by the Nabard’s proven credentials in executing major tasks in enabling the rural and agricultural sectors.

KB Valsala Kumari, Executive Director, Kudumbashree Mission, and K Balachandran, General Manager, Canara Bank, and Convenor, State-level Bankers’ Committee, also spoke on the occasion.

Published on July 17, 2014

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