As per the annual report of the National Bank for Agriculture and Rural Development (NABARD) for FY21, the total loans and advances extended by NABARD in FY21 grew by 25.2 percent year-on-year (YOY) compared with 11.5 percent of FY20.
- The balance sheet size of NABARD reached Rs 6.57 lakh crore as of March 31, 2021, mainly contributed by non-idle (earning) assets.
- NABARD achieved a record YOY growth of 24 percent in its total assets.
Highlights of the Report:
i.Loan: The total outstanding loans in FY21 was about Rs 6 lakh crore of which half was contributed for credit support of production activities at the grassroots and a third for infrastructure development.
ii.NABARD has formed around 6.8 lakh SHGs (Self Help Groups) in FY21 and released Rs 170.2 crores against a sanction of Rs 418.20 crores for promoting over 8.7 lakh SHGs. It has also ensured bank credit for nearly 4 lakhs.
iii.The outstanding credit of the Agricultural sector grew at 12.3 percent in FY21, the highest of all sectors.
- Union Budget 2022 has set a rural credit flow target of Rs 16.5 lakh crore.
iv.A Credit Guarantee Fund of Rs 1,000 crore (with matching contributions from the GOI and NABARD) was set up under NABSanrakshan Trustee Company Private Ltd, the subsidiary of NABARD, to facilitate bank financing to FPOs.
v.As of March 31, 2021, the amount of short-term surplus deployed by NABARD in various financial instruments (including deposits with banks) stood at Rs 47,740 crore, accounting for 7.3 percent of the balance sheet.
vi.NABARD promoted 634 farmer producer organisations (FPOs) in FY21 (against the target of 600).
- GoI has launched a Scheme titled ‘Formation and Promotion of 10,000 Farmer Produce Organizations (FPOs)’ to form and promote 10,000 new FPOs in India within 5 years i.e (FY20 to FY24).
vii.A new line of credit was designed to take part in the $5 trillion economy drive, viz., Rural Infrastructure Assistance to the State Governments (RIAS).
viii.Houses completed under Pradhan Mantri Awaas Yojana–Gramin in FY21 was at 35.3 lakh.
Income and Profit:
| Indicators | FY20 | FY21 |
|---|---|---|
| Income | Rs 32,692 crore | Rs 34,671.2 crore (Increased by 6.1% over FY20) |
| Profit before tax | Rs 5,234.3 crore | Rs 6,081.4 crore |
| Profit after tax | Rs 3,859.2 crore | Rs 4,320 crore |
- NABARD has contributed Rs 27,135 crore in FY21 and has committed Rs 40,000 crore in FY22.
The Growth Rate of different sectors of the economy (at 2011–12 constant prices):
| Sector | Growth Rate (%) in FY21 |
|---|---|
| GVA (Gross Value Added) | -6.2 |
| Agriculture | 3.6 (Primarily due to the Govt’s Aatma Nirbhar Bharat package) |
| Industry | -7.0 |
| Service | -8.4 |
| Overall GDP (Gross Domestic Product)Growth | -7.3 |
Recent Related News:
In July 2021, the Bank of Maharashtra (BoM) signed a Memorandum of Understanding (MoU) with NABARD to foster the existing developmental initiatives that are linked to Priority Sector Lending (PSL) in Maharashtra.
About National Bank for Agriculture and Rural Development (NABARD):
Establishment – 12 July 1982
Headquarters – Mumbai, Maharashtra
Chairman – R. Chintala
