NABARD’s key performances in FY’18 – Annual Press Release
11th April 2018
“Boosting long term credit for capital formation, banking technology for rural financial institutions, enhancing area under irrigation, improving irrigation efficiency and rural housing stayed at top on our ‘To-Do List’ during 2017-18,”
Dr. Harsh Kumar Bhanwala, Chairman, NABARD
A. NABARD in Numbers - 2017-18 (Rs. in crore)
|Particulars||31/3/2017||31/03/2018||Annual growth (%)|
|(Provisional)*||(Over the previous year)|
|A||Balance Sheet Size||348260||4,06,473||17%|
|B||Capital & Reserves||31,471||38345||22%|
|C||Loans & Advances outstanding||3,08,631||3,54,688||15%|
| ||Of which|| || || |
|C(i)||Long Term Refinance||1,05,209||1,22,688||17%|
|C(ii)||Loans under RIDF||1,00,981||1,10,062||9%|
|C(iii)||Long Term Irrigation Fund||9,086||20,447||125%|
|C(iv)||Food Processing Fund||139.79||239||71%|
|C(v)||Warehousing Infrastructure Fund||3402||4296||26%|
|C(vi)||Prime Minister’s Awas Yojana- Gramin|| ||7329|| |
|C(vi)||Other direct loans||14504||21,869||51%|
|E||Per employee productivity||48||56||17%|
B. BUSINESS AREAS
- NABARD’s stress on boosting the long-term loan segment through refinance resulted in improved growth this year with refinance outstanding touching Rs. 1,22,688 crores, reflecting a 17 % growth.
- As against the target of Rs 10.00 Lakh Crore, actual agri credit flow during 2017-18 stood at Rs 10.46 Lakh Crore (provisional data -Term Loans - Rs. 3,69,624 Crore; Crop Loans - Rs. 6,76,653 Crore) as on 28 February 2018. NABARD’s refinance played a catalytic role in the ground level credit flow. Its total refinance disbursements of Rs. 1,45,061 (Long term: Rs. 65,240 Cr.+ Short term: Rs. 79,821 Cr.) were about 14 % of the total ground level credit. In case of RRBs and Cooperative Banks, the same was nearly 55% of their total disbursements.
- A significant development this year was diversification of NABARD’s client base with loan disbursements of Rs. 3900 Crore to Small Finance Banks and Rs. 2794 Crore to NBFCs/ NBFC-MFIs.
- Financing a variety of rural infrastructure projects has emerged as one of the most dominant themes of rural India’s growth. Over the last four years, we have defined our role as an important stakeholder in infra financing sector in rural India. NABARD’s outstanding loans under RIDF and LTIF touched Rs.1,30,509 Crore during the year. Alongside, NABARD took significant strides in providing direct infrastructure loans benefiting rural areas. NABARD Infrastructure Development Assistance (NIDA) saw its outstanding touch Rs. 7,242 Crore, up from Rs. 4948 Crore last year. Warehouse financing saw NABARD’s outstanding loans to this sector reach Rs. 4,296 Crore while the same for Food Processing sector was Rs. 239 Crore. Eleven Mega Food Parks, 1 Integrated Food Park and 03 individual food-processing units have been sanctioned under the Food Processing Fund set up with NABARD.
- NABARD supported the Pradhan Mantri Awas Yojana – Gramin (PMAY-G), through a loan of Rs. 9,000 Crore to the National Rural Infrastructure Development Authority (NRIDA). An amount of Rs. 7,329 Crore was availed during 2017-18.
C. Development work done by NABARD during the year
- Financial Inclusion and NABARD: Cooperative Banks witnessed significant progress in their transition to digital banking during the year 2017-18 with 350 Cooperative Banks supported by NABARD for onboarding to RuPay Kisan Card (RKC) platform as on 31 March 2018. These banks issued 1.76 Crore RKCs during the period. RRBs increased their tally to 1.13 Crore in FY 2017-18.
- During 2017-18, NABARD spent Rs. 293.79 Crore under the Financial Inclusion Fund (FIF) towards a host of initiatives like Financial Literacy Camps, Demonstration of Banking Technology through ATM Vans, Centers for Financial Literacy and various other types of capacity building projects.
- Going Digital with EShakti – the future of Self Help Group movement: Project EShakti for digitisation of SHGs is being implemented in a total of 100 districts today. The number of SHGs digitised as on 31 March 2018 stands at 3.5 lakh in 54,600 villages touching 3.8 million families.
- The growth of Micro Finance continued during 2017-18. The available data shows that the programme covered 88.78 Lakh SHGs. Estimated number of SHGs financed during the year is around 28 lakh which were provided loans to the tune of Rs. 47,000 Crore during the year. It is also heartening to note that the number of JLGs has gone up to 22.22 Lakh and over 6.50 Lakh JLGs were given credit to the tune of Rs.6,514 Crore during 2017-18.
- Green Initiatives during the year: In a huge boost to the work done by NABARD in this sector, the Adaptation Fund under UNFCCC re-accredited NABARD as the National Implementing Entity (NIE) till 2022. 35 projects with grant assistance of Rs. 1593 Crore have been sanctioned till date by NABARD under various funding mechanisms like GCF, AF and NSCCC covering very sensitive areas like crop residue management in Punjab and Haryana, solar roof top segment and Ground Water Resurgence and Solar Pumping System.
- NABARD successfully improved the livelihoods of 5.16 lakh famers under its Watershed Development Program and 3.66 lakh tribal families under its Wadi (orchard development program). These 2290 projects are spread over 28 states. Cumulatively Rs 1,641 Crore have been released as grant till date under various Watershed Program and Rs. 1,462 Crore under Wadi Program by NABARD.
- Farmer collectives: NABARD followed up on the agenda of establishing many Farmer Producers Organizations (FPOs) during the year. Under GOI’s PRODUCE Fund, 2154 FPOs have been sanctioned cumulatively, of which 2,040 FPOs were registered up to 31 March 2018. Simultaneously, NABARD, which has set a target of forming 3,000 FPOs also formed 1,850 FPOs out of its own fund support. In a unique initiative NABARD set up “Krishak Sarathi”, a portal for digitisation of Farmer Clubs to facilitate a digital database of farmers and ensure their sustainability in the long run. Over 23000 Farmers’ Clubs have been digitized during the year.
- Water Campaign: NABARD’s day long water campaign (Jal Jeevan Hai), was implemented in 1,01,569 villages in India’s 250 most vulnerable districts. The program brought together multiple stakeholders at such a huge scale in an effort to inculcate water consciousness at the grass root level.
Brief on NABARD
NABARD in the rural eco-system
NABARD is India's apex development financial institution, formed by an Act of Parliament in 1982 and wholly owned by the Government of India. It started as a pure agri refinance provider to banks. Over the years, it made numerous interventions in multiple domains of agriculture and rural development leading to mass prosperity. Of late, the horizon of NABARD’s roles and responsibilities has expanded in the face of emerging challenges in agriculture and off-farm sector, technological advancement and need for innovations. It necessitated an amendment to the Institution’s Vision and Mission statements.
New Vision: Development Bank of the Nation for Fostering Rural Prosperity.
New Mission: Promote sustainable and equitable agriculture and rural development through participative financial and non-financial interventions, innovations, technology and institutional development for securing prosperity.
FY 2017-18 witnessed another significant development after GoI increased NABARD’s authorized capital to Rs. 30,000 Crore. Moreover, this year RBI transferred its 0.4% stake in NABARD to the GoI.
NABARD further consolidated its position during 2017-18 as a think tank for both Centre and State Governments, improved its district and state level planning which supports banking industry and other stakeholders.