Nabard to expand its long-term lending to Rs 80,000 cr in FY19

Development finance institution Nabard today said it aims to increase its long-term on-lending or refinance portfolio to about Rs 80,000 crore in the current fiscal as part of its effort to improve the rural economy.

The institution's on-lending in 2017-18 was Rs 65,000 crore.

National Bank for Agriculture and Rural Development (Nabard), that earned a surplus of Rs 2,951 crore for the fiscal ended March 2018, plans to raise Rs 40,000 crore from the bond borrowing.

The bank, with a borrowing of Rs 33,000 crore in 2017-18, has been one of the top three borrowers in the market.

The mobilised fund was utilised in projects aimed at rural development related to improving grain storage facility, rural roads, dairy development and irrigation facility, Nabard Chairman H K Bhanwala told reporters here.

"The long-term refinance portfolio has constantly seen improvement. It stood at Rs 53,500 crore in FY17, which improved to Rs 65,000 crore by the end of March 2018. Now we are looking at refinancing portfolio of Rs 75,000 crore to Rs 80,000 crore in 2018-19," he added.

While announcing annual performance of the bank, he said, "we are a zero-net-NPA (non-performing asset) institution with 18 per cent capital adequacy. The government infused Rs 3,800 crore last fiscal."