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The National Bank for Agriculture and Rural Development (Nabard) reported an 8.26 per cent increase in net profit at ₹2,361 crore in the half-year ended September 30, 2020, against ₹2,180.86 crore in the year-ago period.
The government-owned development financial institution’s (DFI) loans portfolio increased to ₹4,95,095 crore as of September-end 2020, registering growth of 20.83 per cent from ₹4,09,743 crore last year.
GR Chintala, Chairman, said that despite challenges due to the Covid pandemic, Nabard disbursed ₹91,698 crore during April to September 2020 under various products to Commercial banks, Co-operative Banks, Regional Rural Banks (RRBs), besides State governments and State government entities.
Rural infra sector
Loans to rural infrastructure sector stood at ₹2,23,952 crore (45.23 per cent of loan portfolio). Long-term finance (investment credit) stood at ₹1,59,611 crore (32.24 per cent of loan portfolio).
Chintala said Nabard expects to disburse more than ₹2.06-lakh crore in the second half of FY21.
Net Interest Margin improved to 1.95 per cent in September 2020 against 1.74 per cent in September 2019.
Referring to the Reserve Bank of India sanctioning a Special Liquidity Facility to it to facilitate liquidity in the agricultural sector amid the pandemic, the DFI said it disbursed ₹25,050 crore under this facility, which includes ₹2,000 crore to NBFC-MFIs, ₹6,700 crore to RRBs, and ₹16,350 crore to State Co-operative Banks.
Assets rise
Nabard’s assets increased 17.30 per cent to ₹5,56,708 crore as of September-end 2020, against ₹4,74,601.87 crore as of September-end 2019.
The DFI has proposed to set up a subsidiary, NABSanrakshan Trustee (P) Ltd, to provide guarantee for loans under agriculture and rural development.
“To start with, guarantee will be provided for loans under Animal Husbandry Infrastructure (CGAHI) scheme announced as part of Animal Husbandry Infrastructure and Development Fund (AHIDF), under PM’s ‘Aatmanirbhar Bharat programme’, and for financing FPOs (Farmer Producer Organisations) as part of Central Sector Scheme for FPOs,” the statement said
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