Presented By: Akshay Virkar

Topic

Study Of NABARD And Impact Of Union Budget

On NABARD

AgendaIntroduction

Headquarters & Branches

Vision & mission

Hierarchy of NABARD

Role

Banking Services

Financial Operation

Impact Of Union Budget On NABARD

Recommendation

Conclusion

Introduction

The committee of Mr. B. Sivaraman recommended the establishment of NABARD, on November 28, 1979.

The parliament through the act 61 of 81 approved its setting up in July 1982.

Set up with initial capital of Rs.100 crore, increased to Rs.2,000 crore, fully subscribed by the government of india and the RBI.

Apex bank for facilitating credit for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts.

It also support to all other allied economic activities in rural areas and secure prosperity of rural areas.

Headquarters

Bandra-Kurla Complex ,Bandra , Mumbai, Maharashtra

BranchesNO STATE /REGION CITY

1 Andaman and Nicobar Port Blair

2 Andhra Pradesh Hyderabad

3 Arunachal Pradesh Itanagar

4 Assam Guwahati

5 Bihar Patna

6 Chhattisgarh Raipur

7 Goa Panaji

8 Gujarat Ahmedabad

9 Haryana Chandigarh

10 Himachal Pradesh Shimla

11 Jammu & Kashmir Jammu

12 Jharkhand Ranchi

13 Karnataka Bangalore

14 Kerala Thiruvananthapuram

NO STATE /REGION CITY

15 Madhya Pradesh Bhopal

16 Maharashtra Pune

17 Manipur Imphal

18 Meghalaya Shillong

19 Mizoram Aizwal

20 Nagaland Dimapur

21 New Delhi New Delhi

22 Orissa Bhubaneswar

23 Punjab Chandigarh

24 Rajasthan Jaipur

25 Sikkim Gangtok

26 Tamil Nadu Chennai

27 Tripura Agartala

28 Uttar Pradesh Lucknow

29 West Bengal Kolkata

Vision

To facilitate sustained access to financial services for the unreached poor in rural areas through

various micro Finance innovations in a cost effective and sustainable manner.

Mission

By the end of year 2015, we have planned to link nearly 9.2 crore households which would

ensure coverage of more than 50% women through SHG (Self-Help Group) Bank linkage

program.

Chairman

Managing Director

Board Of Director

Executive Director

Head Office Departments

Regional Offices

Sub Office Special Cell District Development Offices

Training Establishments

Hierarchy of NABARD

Chairman & Managing Director

Mr. Rakesh Singh(Chairman)

Dr. K. G. Karmakar(Managing Director)

Directors

Dr. K. C. Chakrabarty

Lakshmi Chand

Shashi Rekha Rajagopalan

P. K. Basu

B. K. Sinha Alok Nigam R. K. Meena

A. K. Sinha K. Jayakumar M. I. Khandey

Role

Primary role:

Providing refinance to lending institutions in rural areas .

Bringing about or promoting institutional development .

Evaluating, monitoring and inspecting the client banks .

NABARD also:

Acts as a coordinator in the operations of rural credit institutions.

Extends assistance to the government, the RBI and other organizations for rural development.

Training and research facilities for banks, cooperatives and organizations working in the field of rural development .

Acts as regulator for cooperative banks and RRBs.

NABARD also:

Helps the state governments in reaching their targets of providing assistance agriculture and rural development .

Apex institution accredited with matters concerning policy, planning and operations in the field of credit for agriculture and activities in rural areas.

It prepares, rural credit plans for all districts in the country on annual basis.

It promotes research in the fields of rural banking, agriculture and rural development.

Banking Services Production credit

Kisan Credit Cards

Farmers' Club Program

Tribal Development Fund

Microfinance Program

Village Development Program

Farm Innovation and Promotion Fund

Rural Infrastructure Development Fund

Financial Operation

Sources of funds Amt(31/03/2011) (crore)

Share %

Capital, Reserves & Surplus 13,863 8.7

National rural credit Funds 16,045 10.1

STCRC Fund 14,622 9.2

Deposits 277 0.2

RIDF Deposits 67,878 42.7

Bonds & Debentures 26,788 16.9

Certificates of deposits 137 0.1

Sources of funds Amt(31/3/ 2011) (crore)

Share %

Term Money Borrowings 110 0.1

Commercial Paper 6,448 4.0

Borrowings from GoI 124 0.1

Foreign Currency Loan 503 0.3

Borrowings against STD 360 0.2

Other Liabilities/Funds 11,717 7.4

Total 1,58,872 100.0

Application of funds Amt (31/03/2011) (crore)

Share %

Cash and Bank Balance 10,537 6.6

Government Securities and other Investments

5,868 3.7

CBLO 228 0.1

Production and Marketing Credit 33,885 21.3

Conversion of Production Credit into MT Loans

193 0.1

Application of funds Amt (31/03/2011)(crore)

Share %

MT & LT Project Loans 38,896 24.5

LT Non Project Loans 167 0.1

Loans out of RIDF 66,078 41.7

Co Finance Loans 88 0.1

Other Loans 182 0.1

Fixed & Other Assets 2,750 1.7

Total 1,58,872 100.0

Impact Of Union Budget On NABARD

Agriculture estimated to grow at 2.5% in FY12Interest subvention scheme for short term crop loans to farmers at 7% interest per annum extended to FY13Many storage facilities has been given by governmentRs. 100 bn allocated to NABARD for refinancing Regional Rural Banks (RRBs)An increase in allocation to Rashtriya Krishi Vikas Yojana (RKVY) Rs78.6bn in FY11 to Rs 92.2bn in FY12

The allocation for "Bringing Green Revolution to Eastern India" (BGREI) increased from Rs4bn to Rs10bn in FY12Bank credit to agriculture increased to Rs5,750bn from Rs4,750bnProposes to provide Rs159bn for capitalisation of PSBs, RRBs including NABARDvarious bills has been introduced to attempts to roll forward the process of financial sector legislative reformsThis budget has created macro level platform to those who will start new business in agriculture, infrastructure and manufacturing sectors.

Recommendation

Public sector bank.

Environment of the bank.

Liberty to express views

Preference to work.

Conclusion

As the financial system has grown rapidly, Nabard has taken initiative that credit made available by small and marginal farmers is productively

employed. Other bank should also take initiative as Nabard is taking the initiative.

Thank You