Nabard FY14 Net marginally up at Rs 1,860 crore

Nabard today reported a marginal 3 per cent growth in its annual net profit at Rs 1,860.25 crore in FY2013-14 ended March 31, even though its income rose 20 per cent to Rs 15,442.33 crore.
Announcing the annual results, National Bank for Agriculture and Rural Development (Nabard) Chairman Harsh Kumar Bhanwala told reporters here the lender refinanced 21.7 per cent more projects in the reporting period at Rs 1,28,522 crore, which included crop loans and long-term loans.
Its RIFD (rural infrastructure development fund) lending rose 5.2 per cent to Rs 78,957 crore, while other loans rose 26.5 per cent to Rs 5,415 crore.

An excess monsoon has helped the borrowers pay back their dues on time as a result, the lender's asset quality has improved. While its gross NPA came down to 0.043 per cent (Rs 95.80 crore) from 0.056 per cent, its net NPA came down to 0.0008 per cent (Rs 19.73 crore) from 0.012 per cent in FY13, the chairman said.
However, due to aggressive lending, the bank saw its capital adequacy ration come down to 16.61 per cent from 18.24 per cent.
The balance sheet of the developmental lender rose 19.45 per cent to 2,54,574 crore in the reporting year, and the chairman said his target is to take the balance sheet to Rs 3,00,000 crore this fiscal. The bank has sought Rs 1,500 crore capital infusion from the government towards this.

The RBI allows Nabard to borrow 10 times its net-owned funds, which stood at Rs 22,000 crore at the end of FY14. The rest of the funds could be internal accruals to reach the desired balance sheet size, Bhanwala said.