NABARD loans increase by 25.2 pc to reach Rs 6 lakh crore in FY21
The total loans and advances granted by NABARD in 2020-2021 recorded a growth of 25.2% year-on-year to reach Rs 6 lakh crore, half of which is devoted to production and investment, the company said. bank in its annual report.
The report states that NABARD earned 34,671.2 crore in revenue in 2020-2021, an increase of 6.1% from the previous year. Its profit before tax in 2020-2021 was Rs 6,081.4 crore, up from Rs 5,234.3 crore a year ago. Profit after tax was Rs 4,320 crore, compared to Rs 3,859.2 crore in 2019-2020.
The National Bank for Agriculture and Rural Development (NABARD) also said its balance sheet size reached Rs 6.57 lakh crore as of March 31, 2021, most of which is due to non-inactive (earning) assets that , in turn, have helped create private and public investments at ground level.
“We achieved a record 24% year-over-year growth in our total assets and similar impressive growth in the loan portfolio,” NABARD Chairman GR Chintala said in the annual report.
He noted that due to the government’s Aatmanirbhar Bharat program and hard-working farmers, the agricultural sector recorded a growth of 3.6% last year and is likely to repeat performance during the fiscal year in course also.
Outstanding agricultural credit increased 12.3 percent in 2020-2021, the highest of any sector.
“This gives us confidence to meet the Rs 16.5 crore rural credit flow target set by the 2022 Union budget, as the current year’s monsoon is also expected to be normal,” Chintala said.
Highlighting the deployment of funds and year-over-year growth in March 2021, the annual report states that total NABARD loans and advances reached Rs 6 lakh crore against Rs 4.8 lakh crore as of 31 March 2020. Growth was 25.2 percent despite the pandemic compared to 11.5% in 2019-2020.
“It is encouraging to see that half of this total went to production and investment and a third to infrastructure development. With the deployment of the package over the next few years, demand for retail credit in the agricultural and rural sector is expected to remain strong, ”he said.
The report further states that the amount of short-term surplus deployed by NABARD in various financial instruments, including deposits with banks, amounted to Rs 47,740 crore as of March 31, 2021, representing 7.3 % of the balance sheet.
Of that total, he said 94% was deployed in government securities and other financial instruments and that Rs.2,945 crore was held in short-term bank deposits to meet liquidity and financial requirements. emergency, as of March 31, 2021.
NABARD said that during 2020-2021 he formed about 6.8 lakh of Self Help Groups (SHG), provided bank credit for almost 4 lakh and released Rs 170.2 crore against a penalty of Rs 418.20 crore for promoting over 8.7 lakh SHG.
According to the report, the bank promoted 634 agricultural producer organizations (OPAs) in the fiscal year ending March 2021 against the target of 600. In 2019-2020, the government announced a program to develop 10,000 OP in five years. As one of the implementing agencies, NABARD targeted the promotion of approximately 4000 FPO during the program period.
A credit guarantee fund of Rs 1,000 crore with an equal share from central government and NABARD has been set up under NABSanrakshan, a subsidiary of NABARD, to encourage banks to finance FPOs.