Total biz to cross Rs 1.5 lakh cr by fiscal-end: Nabard

The National Bank for Agriculture and Rural Development (Nabard) today said its total business size would cross Rs 1.50 lakh crore by the end of current fiscal with lending for rural infrastructure constituting bulk of total business mix.

"We are expecting our total business will cross Rs 1.50 lakh crore by end of 2010-11," Nabard Executive Director Amaresh Kumar told reporters here today.

Nabard had total business of Rs 1.36 lakh crore in last fiscal, he said, on the sidelines of zonal seminar on "Preparedness of Agriculture Rural Development Banks' for Revival".

Forty per cent of Nabard's total business represents extending advances to states under Rural Infrastructure Development Fund (RIFD) at rate of 6.5 per cent.

"Almost Rs 60,000 crore of funds will be advanced under RIDF to states in this fiscal," Kumar said. Rest of Nabard's total business constitutes crop loan and investment credit.

In the wake of rising cost of funds, Nabard this month has also revised the interest rate on refinance upward for commercial banks and state cooperative banks across the country.

"The interest rate has been raised by 50 basis points for commercial banks and 25 basis points for cooperative segment this month," Kumar added.

With the revision in interest rate, the new interest rate on refinance for cooperative sector is pegged at 9 per cent per annum and 9.75 per cent for commercial banks.

During the start of the current fiscal, the rate of interest in refinance stood below 8 per cent for cooperative sector and 8 per cent for commercial banks.