Nabard pumps in Rs 10,000 cr to refinance banks

The National Bank for Agriculture and Rural Development (Nabard) has pumped in Rs 10,000 crore till August to refinance banks, of the targeted Rs 33,500 crore, Nabard Chairman U C Sarangi said today.

"We have already used Rs 10,000 crore to refinance banks till August," Sarangi told reporters on the sidelines of a Crisil-organised event here.

In order to insure that banks have sufficient funds to lend to needy sectors a considering a weak monsoon, Nabard made a provision of Rs 33,500 crore to refinance regional rural banks (RRBs), commercial banks and cooperative banks in FY10.

Of the Rs 33,500 crore, Rs 21,000 crore would be utilised for short-term crop loans and Rs 12,500 crore for long-term investment credit, Sarangi said.

Last financial year, the total refinancing amount from Nabard to RRBs, commercial and cooperative banks stood at Rs 26,000 crore.

Nabard is currently working on a project to convert viable Self Help Groups (SHGs), engaged in manufacturing products having market-demand, to federations to link them to assured markets, he said.