National Bank for Agriculture and Rural Development (Nabard) on Tuesday reported a 24% growth in its balance sheet to a record high of ₹6.57 lakh crore in the financial year ended on March 31, 2021.
In the financial year 2019-20, its balance sheet stood at ₹5.32 lakh crore.
“In FY 2020-21, we have given a stellar performance. We closed the business at ₹6.57 lakh crore, recording a growth rate of 23.5%. This is an all-time high,” Nabard Chairman G.R. Chintala told reporters.
The growth in business was helped by various schemes announced by the government, rejigging of processes and products done by the institution and also as it encouraged clients, institutions and state governments to avail the benefits of the schemes as much as possible for faster developments, he said.
“For FY2021-22, we have pegged our balance sheet size at ₹7.5 lakh crore,” Mr. Chintala said.
The borrowings of the bank increased to ₹3.18 lakh crore from ₹2.06 lakh crore during the corresponding period, and for FY2022 it plans to borrow close to ₹3.7 - ₹3.9 lakh crore from the market, he said.
Its net interest margins (NIM) stood at 1.72% and capital to risk (weighted) assets ratio (CRAR) at 20.92%. Gross NPAs stood at 0.21%, almost the same as last year. Net NPAs were at 0%, Chintala said.
The loans and advances of the development bank has grown from ₹4.81 lakh crore to ₹6.03 lakh crore, a significant increase of 25%.
Total refinance disbursement done by it stood at ₹2.23 lakh crore, a growth of 25% over 2019-20.
Under Aatmanirbhar Bharat Abhiyan, Nabard disbursed ₹16,800 crore to cooperative banks, ₹6,700 crore to regional rural banks (RRBs) and ₹2,000 crore to NBFC-MFIs through a Special Liquidity Facility (SLF).
NABARD disbursed ₹65,746 crore 2020-21 for building agricultural and rural infrastructure. The disbursements were towards Rural Infrastructure Development Fund (₹27,831 crore), NABARD Infrastructure Development Assistance (₹7,506 crore), Long Term Irrigation Fund (₹7,761 crore), Pradhan Mantri Aawas Yojana – Gramin (₹20000 crore), Micro Irrigation Fund (₹1,827crore) and Warehouse Infrastructure Fund (₹825 crore).
Mr. Chintala said despite the COVID-19 pandemic, the institution completed 100% inspections of regional rural banks.
As per the inspection, out of the 43 RRBs, 23 are in very good shape, he said.
When asked about consolidation of RRBs, Mr. Chintala said, “One-state-one-RRB kind of thinking is already sinking in everywhere, but I am not saying that the decision (on it) has been taken.” Speaking about microfinance institutions (MFIs), he said during the initial months of lockdown in FY21, micro lenders collections and business were affected.
“From August (2020), the collection efficiencies (of MFIs) started improving. Today, most of the MFIs have a collection efficiency of 95% - 96%,” Mr. Chintala said.
During 2020-21, Nabard promoted 394 farmer producer organisations (FPOs) and provided grant assistance of ₹38.41 crore leading to a cumulative grant support of ₹244.40 crore.
In addition, it is also the leading implementing agency under the Central Sector Scheme of 10,000 FPOs and would promote 4,000 FPOs in 5 years. In the previous fiscal, it sanctioned 300 FPOs with a grant of ₹75 crore.