 "Nabard net surplus up by 33% to Rs 2,400 cr")
The National Bank for Agriculture and Rural Development (Nabard) on Tuesday reported a 33 per cent increase in post-tax surplus for 2014-15, at Rs 2,400 crore on Tuesday, driven by an increase in its core refinancing activities.
The post-tax surplus of the agri-bank in 2013-14 was Rs 1,860 crore.
Even though the jump gives it greater room to borrow from the markets, Nabard Chairman H K Bhanwala said that sums from commercial banks not meeting priority sector lending (PSL) norms are falling continuously and therefore, it has made a representation to raise resources from tax-free bonds.
“We need access to low cost funding resources,” he said, and stressed that the newly-floated draft guidelines on priority sector lending might squeeze Nabard's funding line.
For FY16, it will borrow Rs 50,000 crore from markets, which is Rs 10,000 crore more than the last financial year, Bhanwala said, explaining that this is possible through the Rs 700-crore jump in surplus and Rs 300-crore equity infusion committed by the government.
The chairman also said that generating long-term investments in agriculture will be the focus area for the lender, going beyond traditional short-term refinance which it has been doing.
In FY15, disbursements for short-term loans refinance grew 19.57 per cent to Rs 1.21 lakh crore, while long-term refinance disbursements soared by 46 per cent to Rs 31,424 crore, the chairman said, adding that the Budget announcement of earmarking Rs 15,000 crore for the Long-Term Rural Credit Fund will be of help.
The post-tax surplus of the agri-bank in 2013-14 was Rs 1,860 crore.
Even though the jump gives it greater room to borrow from the markets, Nabard Chairman H K Bhanwala said that sums from commercial banks not meeting priority sector lending (PSL) norms are falling continuously and therefore, it has made a representation to raise resources from tax-free bonds.
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Contribution from PSL shortfall slipped from Rs 1.60 lakh crore in FY14 to Rs 1.07 lakh crore in FY15 and is estimated to slip further to Rs 90,000 crore for FY16.
“We need access to low cost funding resources,” he said, and stressed that the newly-floated draft guidelines on priority sector lending might squeeze Nabard's funding line.
For FY16, it will borrow Rs 50,000 crore from markets, which is Rs 10,000 crore more than the last financial year, Bhanwala said, explaining that this is possible through the Rs 700-crore jump in surplus and Rs 300-crore equity infusion committed by the government.
The chairman also said that generating long-term investments in agriculture will be the focus area for the lender, going beyond traditional short-term refinance which it has been doing.
In FY15, disbursements for short-term loans refinance grew 19.57 per cent to Rs 1.21 lakh crore, while long-term refinance disbursements soared by 46 per cent to Rs 31,424 crore, the chairman said, adding that the Budget announcement of earmarking Rs 15,000 crore for the Long-Term Rural Credit Fund will be of help.