Nabard to raise Rs 55,000 crore from market for rural development schemes

Nabard on Friday said it plans to raise about Rs 55,000 crore from the market in the current fiscal to fund its business growth and also support various agricultural and rural development schemes of the government.

"The borrowing from the market will be similar to last financial year. We intend to raise about Rs 55,000 crore through the public platform from the domestic market in 2019-20," Nabard chairman Harsh Kumar Bhanwala said here.

National Bank for Agriculture and Rural Development (Nabard) has already raised Rs 12,000 crore from the market in the first quarter of the current financial year, he said.

The financial institution raises funds through long term bonds - usually of 10-15 years tenures.

Last financial year, Nabard raised a total of Rs 56,069 crore through non-convertible debentures, of which Rs 33,169 crore was for the government schemes and the remaining was for the organisation's own funding requirements.

Some of the government scheme financed by Nabard include Swachh Bharat Abhiyaan Pradhan Mantri Awas Yojana, and Pradhan Manti Krishi Sinchai Yojana.

In 2018-19, Nabard's loan portfolio grew nearly 22 per cent to Rs 4.32 trillion.

Assets under management of the bank were at Rs 4.87 trillion at the end of March 2019, up 20 per cent since March 2018.