Nabard FY17 borrowing estimated at Rs 50k cr

National Bank for Agriculture and Rural Development (Nabard) has pegged its market borrowings at Rs 50,000 crore in the current financial year (FY17) to finance its refinancing and lending activity.

In the year gone by FY16, the rural credit institution had raised about Rs 38,000 crore, its chairman Harsh Kumar Bhanwala told reporters on Wednesday. The market borrowings also include the funds raised through tax-free bonds. In FY16, it has issued tax free bonds for Rs 5,000 crore.

Nabard reported a 13 per cent jump in profit after tax  at Rs 2,501 crore in 2015-16 on increased rural infrastructure development fund disbursements and higher term lending. In the previous financial year, its PAT stood at Rs 2,403 crore.

He said the profit improved on account to higher RIDF disbursements and term lending which resulted in increase in credit demand and capital formation in agriculture sector.

It's balance sheet grew by 15 per cent to Rs 3,10,382 crore in 2015-16 as against Rs 2,85,809 crore.

Loans and advances stood at Rs 2, 65,361 crore in the year ended March 31, up 12 per cent from Rs 2, 52,369 crore.

The long term refinance disbursement grew at record 53 per cent to Rs 48,044 crore from Rs 31,427 crore in the previous year.