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| Nabard looks at disbursals worth Rs 50k cr despite weak monsoon |
| BS Reporter / Kolkata Jul 15, 2009, 00:17 IST |
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 In spite of lower than expected rainfall, National Bank for Agriculture and Rural Development (Nabard) is hopeful of disbursing Rs 50,000 crore this financial year, about 13.64 per cent more over the last financial year.
The bank is hopeful of garnering around Rs 3,000 crore from Bhavishya Nirman bonds, for which it expects a final approval by the end of this month.
This apart, the bank is expected to garner a substantial amount from internal accruals, said U C Sarangi, chairman, Nabard, on the sidelines of a banking conclave organised by the Federation of Indian Chambers of Commerce and Industry here on Tuesday.
The Bhavishya Nirman bond, which was launched in February 2007, had an initial price of Rs 8,500, which was revised to Rs 8,750 in January 2009, with a guaranteed return of Rs 20,000 after 10 years.
Sarangi said he was hopeful that the agriculture disbursement this financial year will be Rs 3,25,000 crore, on the back of good lending in the Rabi season. The government had set a target of Rs 3,25,000 crore for the agriculture credit flow for 2009 to 2010. The total disbursement of agricultural credit last financial year was Rs 2,87,000 crore.
There has been some rainfall during the past two weeks in various pockets, which has enabled the sowing of kharif crops. In areas where rainfall hasn’t been adequate, farmers are sowing alternative crops rather than the usual normal crops. There might be good rainfall in August and September, thereby enhancing the productivity of Rabi crops. Also, Rabi crop mainly depends on reservoirs for water, and not on rainfall,
Cut in refinance rates
Nabard had slashed the refinance rates by 100 basis points to 8.5 per cent (earlier 9.5 per cent) for commercial banks and to 8 per cent (earlier 9 per cent) for co-operative and regional rural banks effective from July 15,
Sarangi said. Nabard has set a target of 25 per cent growth in refinance at Rs 12,500 crore in 2009-10; up from Rs 10,000 crore during the last financial year.
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