Nabard FY14 operating surplus soars 28 pc to Rs 1,635 cr

The National Bank for Agriculture and Rural Development (Nabard)  reported 27.81 per cent jump in net operating surplus at Rs 1,635 crore for the last fiscal, against Rs 1,279.21 crore in the previous financial year.

Serving special needs, the bank ploughs back the surpluses in its reserves and other funds and does not pass on anything to the government which owns 99 per cent stake in it with the remaining 1 per cent being held by the RBI, the bank said in a statement issued here.

A Bill is pending in Parliament to allow the RBI to divest this residual one per cent stake too. Earlier, the RBI and the government were equal owners of the development bank.

During the fiscal, Nabard's total advances were up 18.27 per cent at Rs 1,64,969.46 crore, it said.

Concessional rate refinancing facility provided to cooperative and regional rural banks for financing small and marginal farmers reached an all time high, with Rs 48,337.75 crore being outstanding as of March 2012, against Rs 33,884.82 crore a year ago.

On the capital formation and allied investments front, Nabard's total outstanding stood at Rs 43,105.29 crore as against Rs 38,896.43 crore.

The outstanding under the rural infrastructure development fund raised through priority sector lending shortfalls by commercial lenders stood at Rs 70,860 crore against Rs 66,077 crore year ago, it said.

Source: Financial Express