The National Bank for Agriculture and Rural Development (NABARD) has lodge a surge of 25.2 percent in its loans and advances in FY21.
The Chairman of NABARD, G R Chintala said in its annual report for FY21 that half of the total loans outstanding of rupees 6 lakh crore was for credit support of production activities at the grassroots and a third of that for infrastructure development.
The Special Liquidity Facility (SLF) of rupees 25,500 crore and rupees 1,567 crore of additional SLF was given in advance to cooperative banks, regional rural banks, and micro-finance institutions.
This additional SLF enables unrestrained flow of credit to farmers for seasonal agricultural operations while the Long Term Rural Credit Fund help to magnify on-farm capital formation.
G R Chintala said, "I am glad to announce that NABARD's balance sheet size reached Rs 6.57 lakh crore as on 31 March 2021, most of which is on account of non-idle (earning) assets that, in turn, helped create private and public investments at the ground level."
He said that NABARD had lodged a record year-on-year growth of 24 percent in its total assets and similar impressive growth in loan portfolio.
The Chairman also added that NABARD has been a key player in the infrastructure space with 7.1 lakh projects sanctioned since initiation of RIDF under agriculture, irrigation, connectivity and social infrastructure categories.
Chintala said, "We designed a new line of credit to partake in the USD 5 trillion economy drive -- Rural Infrastructure Assistance to the State Governments (RIAS)."
The RIAS aims to create infrastructure to support livelihoods in Eastern part of India, which not only straggling behind in physical and social infrastructure, but also experience the post-pandemic reverse migration.