NABARD to raise Rs 3.5 trn in FY23; bond issuance seen at Rs 45,000 cr

Nabard will work on a viability plan for 22 regional rural banks in the next six months to address issues of capital adequacy, business growth and human resources

The National Bank for Agriculture and Rural Development (Nabard) is planning to raise Rs 3.5-3.6 trillion, including Rs 45,000 crore through long-term bonds, in FY23.

The balance will be from the shortfall in priority sector lending (PSL) and short-term instruments. G R Chintala, chairman, Nabard, said the scale of fund raising in FY23 was similar to what the institution did in FY22.

“While the average costs of funds came down sharply to 4.86 per cent in FY22 from 5.24 per cent in FY21, this year (FY23) we do not know how it is going to be,” he said.

The yield on long-term paper