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The National Bank for Agriculture and Rural Development (NABARD) expects to grow its balance sheet by about 16 per cent year-on-year (y-o-y) to ₹8.75 lakh crore by FY23 against ₹7,57,246 crore as of FY22.
The development finance institution’s (DFI) balance sheet had grown 15 per cent y-o-y as of March-end 2022 over the March-end 2021 figure of ₹6,57,798 crore.
Total disbursements increased by about 8 per cent year-on-year (y-o-y) at ₹3,77,086 crore in FY22 against ₹3,50,022 crore in FY21.
The disbursements comprise loans given under heads, such as medium and long-term project loans, Rural Infrastructure Development Fund loans, production & marketing credit, Long-Term Irrigation Fund, Pradhan Mantri Awaas Yojana – Gramin, and direct refinance.
Rise in loan and refinance disbursements
The loan portfolio of the development finance institution (DFI) increased by about 13 per cent y-o-y to ₹6,80,731 crore as of March 31, 2022 from ₹6,03,000 crore as of March 31, 2021, per NABARD’s statement.
NABARD reported an all-time high to refinance disbursement of ₹2.68 lakh crore in 2021-22, as against ₹2.23 lakh crore extended in the previous year.
Long-term refinance disbursement in FY22 was up 25 per cent y-o-y and reached an all-time high of ₹1.16 lakh crore; as against ₹92,786 crore disbursed during FY21.
Similarly, the DFI reported an all-time high short-term disbursement with ₹1,52,430 crore during FY22 as against ₹ 1,30,964 crore disbursed during FY21.
RRBs
NABARD Chairman Govinda Rajulu Chintala observed that the government constituted a committee last year to look into Regional Rural Banks (RRBs) work.
There are 43 RRBs in the country, with states such as Maharashtra, Madhya Pradesh, Uttar Pradesh, Rajasthan and Andhra Pradesh having two or more RRBs.
Based on the committee’s recommendation, the government had infused capital into almost half of the RRBs.
The government contributed ₹4,084 crore towards RRBs recapitalization in FY22. Out of this, ₹3,197 crore has been released to 21 RRBs so far, according to the statement.
RRBs are three-way joint ventures between the Government of India, the concerned State Government and the bank, which had sponsored the RRB, with each contributing to the share capital of these banks in the proportion of 50 per cent, 15 per cent and 35 per cent, respectively. The area of operation of the RRBs is limited to a few notified districts in a State.
With the capital infusion in FY22, all the RRBs are above the prudential norms and have the growth capital, said Chintala.
In FY23, NABARD”s borrowing is likely to be at the same level as in FY22 (₹3.63 lakh crore).
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