Nabard balance sheet registers 24 percent growth in FY2021

Nabard (The National Bank for Agriculture and Rural Development) announced on Tuesday that its balance sheet grew by 24% to a record high of Rs 6.57 lakh crore in the fiscal year that ended on March 31, 2021. Its balance sheet for the fiscal year 2019-20 was Rs 5.32 lakh crore.

“We had a fantastic fiscal year in 2020-21. We closed the year with a revenue of Rs 6.57 lakh crore, a 23.5 percent increase. G R Chintala, chairman of Nabard, told reporters, "This is an all-time peak."

The success of an organization was supported by the government's numerous schemes, as well as the institution's rejigging of processes and goods, and the fact that it allowed customers, organisations, and state governments to take advantage of the schemes as much as possible for faster development, he said.

“We have pinned our balance sheet volume for FY2021-22 at Rs 7.5 lakh crore,” Chintala said. The bank's borrowings rose to Rs 3.18 lakh crore in the same period from Rs 2.06 lakh crore, and it expects to borrow close to Rs 3.7-3.9 lakh crore from the market in FY2022, he stated.

It had net interest margins of 1.72 percent and a capital to risk (weighted) assets ratio of 20.92 percent. Gross nonperforming assets (NPAs) were 0.21 percent, nearly unchanged from the previous year. Chintala reported that net nonperforming assets (NPAs) were at zero percent.

The development bank's loans and advances have increased from Rs 4.81 lakh crore to Rs 6.03 lakh crore, a substantial increase of 25%. Its total refinance disbursement in 2019-20 was Rs 2.23 lakh crore, up 25% from the previous year. Nabard allocated Rs 16,800 crore to cooperative banks, Rs 6,700 crore to regional rural banks (RRBs), and Rs 2,000 crore to NBFC-MFIs through a Special Liquidity Facility under the Aatmanirbhar Bharat Abhiyan (SLF).

NABARD allocated Rs 65,746 crore for agricultural and rural infrastructure growth in 2020-21. Rural Infrastructure Development Fund (Rs 27,831 crore), NABARD Infrastructure Development Assistance (Rs 7,506 crore), Long Term Irrigation Fund (Rs 7,761 crore), Pradhan Mantri Aawas Yojana – Gramin (Rs 20000 crore), Micro Irrigation Fund (Rs 1,827 crore), and Warehouse Infrastructure Fund (Rs 1,827 crore) were among the funds disbursed (Rs 825 crore).

Despite the Covid-19 pandemic, Chintala said the institution conducted 100% inspections of regional rural banks. According to the inspection, 23 of the 43 RRBs was in excellent condition.“One-state-one-RRB kind of thought is now sinking in everywhere, but I am not saying that the decision (on it) has been taken,” Chintala said when asked about RRB consolidation. He said that during the first months of the lockdown in FY21, collections and company of microfinance institutions (MFIs) were harmed.

“Beginning in August (2020), compilation efficiencies (of MFIs) began to improve. Most MFIs now have a selection efficiency of 95-96 percent, according to Chintala. Nabard promoted 394 farmer producer organizations (FPOs) in 2020-21 and offered grant assistance of Rs 38.41 crore, totaling Rs 244.40 crore in grant funding.

It is also the lead implementation organization for the Central Sector System of 10,000 FPOs, with aims to promote 4,000 FPOs in the next five years. It approved 300 FPOs with a grant of Rs 75 crore in the previous fiscal.