National Bank for Agriculture and Rural Development (NABARD) has said that the banks and cooperatives have disbursed Rs 17.09 trillion worth of agriculture credit during 2021-22 against a target of Rs 16.5 trillion.
Releasing Nabard’s financial results on Thursday, chairman GR Chintala said the share of crop loans is about Rs 10 trillion and the remaining Rs 7 trillion disbursed for agri-infra and other long-term projects. The farmers get crop loans at a 7% of interest rate as the Centre subsidises 2% of interest. But those farmers who promptly repay the loan within the deadline get an additional rebate of 3%, he said.
NABARD’s asset size increased from Rs 6,57,798 crore as on March 31, 2021 to Rs 7,57,905 as on March 31, 2022, registering growth of 15.22% in FY2022. The bank’s balance sheet also grew to Rs 7,57,246 crore in size for FY22 as compared to Rs 6,57,798 crore for FY21, up by 15.08%.
The loan portfolio of the bank has increased to Rs 6,80,731 crore as of March 31, 2022, from Rs 6,03,000 crore as of March 31, 2021; registering a growth of 12.89%. The total disbursement during the fiscal stood at Rs 3,77,086 crore as against Rs 3,50,022 crore in the last fiscal, marking a growth of 7.73%. NABARD has reported an all-time high to refinance disbursement of Rs 2.68 trillion during the year 2021-22 as against a total refinance disbursement of Rs 2.23 trillion extended in the previous year.
The long-term refinance disbursement touched Rs 1,16,000 crore as compared to Rs 92,786 crore during FY21, marking a growth of 25.02% over the previous year. The doubling farmers’ income (DFI) reported an all-time high short-term disbursement with Rs 1,52,430 crore during 2021-22 as against Rs 1,30,964 crore disbursed during 2020-21.
Supporting the financial institutions in the second and third waves of the pandemic, NABARD said the bank infused adequate liquidity by disbursing Rs 24,399.44 crore under a special liquidity facility. NABARD also disbursed a concessional refinance of Rs 15,000 crore from the long-term rural credit fund to regional rural banks (RRBs) and cooperative banks (CBs) for boosting capital formation in agriculture. Further, NABARD extended refinance support of Rs 8,820 crore to the NBFC sector and Rs 3,447 crore to the small finance banks to resolve the liquidity woes faced by the microlenders.