BackNabard’s rural infra loan disbursals fall in FY11
Nabard’s rural infra loan disbursals fall in FY11
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Mumbai: National Bank for Agriculture of Rural Development, or Nabard, has seen a fall in its disbursements of rural infrastructure loans due to capacity constraints by state governments to implement projects in the fiscal year ending 31 March 2011, despite higher sanctions.
During fiscal 2010-11, Nabard sanctioned project loans worth Rs18,315 crore as against Rs15,630 crore in the previous fiscal but could disburse only Rs12,060 crore, lower than Rs12,388 crore in the previous fiscal year.
“Disbursals from RIDF has been stagnated due to lack of capacity by the state governments to implement infrastructure projects. We are looking at ways on how to address this problem," Prakash Bakshi, executive director of Nabard, said.
Nabard is the sectoral regulator for cooperative banks and regional rural banks (RRBs). The bank has been envisaged as the regulator for smaller micro finance institutions (MFIs) in the proposed micro finance bill.
During 2010-11, Nabard posted a 16.7% rise in its total loan book to Rs1,59,147 crore as against Rs1,36,292 crore in the year-ago period while crop loan assistance to cooperative banks and RRBs stood at Rs33,400 crore during 2010-11 as against Rs24,216 crore in the previous fiscal.
The bank plans to increase crop loan disbursals to Rs40,000 crore in the current fiscal, Bakshi said.
Under investment credit, Nabard offered loans worth Rs13,500 crore during 2009-10 for agriculture and allied sectors, non-farm sector activities and services sector to commercial banks, RRBs and cooperative banks as against Rs12,036 crore in 2009-10, a release said.
Under the self help group (SHG) bank-linkage programme, banks have so far cumulatively funded 50 lakh SHGs as on 31 March 2011, while total number of SHGs opened a savings account with banks stood at 70 lakh.
dinesh.n@livemint.com
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