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Home > Finance News > Nabard to raise Rs 3.7 to Rs 3.9 lakh crore from the market in FY’22

Nabard to raise Rs 3.7 to Rs 3.9 lakh crore from the market in FY’22

Agri-lender Nabard is planning to raise Rs3.7-3.9 lakh crore from the market in FY’21-22 to meet its growing balance sheet requirements as larger refinance opportunities for agriculture loans have opened up as banks have seen their agri-loan group pickup faster than corporate and retail loans.

Nabard would tap the market through a variety of permissible instruments throughout the year. “The timing and the frequency of approaching the market would depend on our need and the prevailing market conditions” said G R Chintala, chairman, Nabard. It had raised Rs 3.17 lakh crore from the market in FY’20-21.

Loans to agriculture and allied actvities by commercial banks amounted to Rs 12.7 lakh crore as of end February which has grown 10.2 the double the pace over previous year during which these loans grew 5.8 per cent. Together with loans from co-operative banks such loans are estimated at Rs 13,75 lakh crore, creating a corresponding refinance opportunity.

Nabard’s balance sheet grew by 24% in FY’20-21 to Rs 6. 57 lakh crore during the pandemic year when commercial banks were struggling to grow their loan books and most ended with single didgit loan growths. Nabard has projected a balance sheet size of Rs 7.5 lakh crore for FY’22.

Loans and advances by the agri-lender rose from Rs 4,81,514 crore to Rs 6,03,000 crore in FY’20-21, up 25 per cent. Its refinance disbursement too rose by the same pace to Rs 2.23 lakh crore in FY’20-21. the refinance was to support agriculture and rural development activities during the pandemic. Under Aatmanirbhar Bharat Abhiyan, Nabard disbursed Rs 16,800 crore to Cooperative Banks, Rs 6,700 crore to regional rural banks and Rs 2,000 crore to NBFC-MFIs through a Special Liquidity Facility (SLF). It also provided additional SLF of Rs 1,567 crore to NBFC-MFIs with asset size of less than Rs 500 crore to help the smaller players withstand the pandemic pressure.

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