Latest News | Nabard's H1 PAT Grows 8.26 Pc to Rs 2,361 Cr

Mumbai, Oct 30 (PTI) National Bank for Agriculture and Rural Development (Nabard) registered a growth of 8.26 per cent in its profit after tax (PAT) at Rs 2,361 crore in the half year ended September.

Its loan portfolio rose 20.83 per cent to Rs 4,95,095 crore from Rs 4,09,743 crore last year, the bank said in a release.

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During the April-September period, the long term finance (investment credit) stood at Rs 1,59,611 crore, which is 32.24 per cent of the loan portfolio. Loans to the rural infrastructure sector stood at Rs 2,23,952 crore.

“Despite challenges due to the COVID pandemic, Nabard disbursed Rs 91,698 crore during April to September 2020 under various products to commercial banks, cooperative banks, RRBs, besides state governments and state government entities,” its chairman G R Chintala said.

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The development finance institution expects to disburse more than Rs 2.06 lakh crore in the second half of the financial year, he said.

The size of assets of the bank grew 17.30 per cent to Rs 5,56,708 crore in the first half of the current fiscal.

While its own funds comprising capital and reserves increased to Rs 52,381 crore from Rs 46,840 crore in September 2019, the borrowings of the bank rose to Rs 4,62,537 crore from Rs 3,89,034 crore, it said.

RBI had sanctioned a limited special liquidity facility to Nabard to facilitate liquidity in the agricultural sector amid COVID-19 pandemic. The bank disbursed Rs 25,050 crore under this facility which includes Rs 2,000 crore to NBFC-MFIs (Non-Banking Financial Company - Micro Finance Institutions) Rs 6,700 crore to RRBs (Regional Rural Banks ) and Rs 16,350 crore to state cooperative banks.

Gross and net NPA stood at 0.25 per cent and 0.07 per cent respectively in September, it said. Its capital adequacy ratio stood at 21.46 per cent as on September 30, 2020.

Net interest margin improved to 1.95 per cent in September 2020 as against 1.74 per cent in September 2019.

The bank has proposed to set up a subsidiary- NABSanrakshan Trustee (P) to provide a guarantee for loans under agriculture and rural development.

To begin with, a guarantee will be provided for loans under Animal Husbandry Infrastructure (CGAHI) scheme announced as part of Animal Husbandry Infrastructure and Development Fund (AHIDF), under PM's 'Aatmanirbhar Bharat' programme, and for financing FPOs as part of Central Sector Scheme for FPOs.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)