ANNUAL REPORT 2011-12

Letter of Transmittal

CHAIRMAN Ref.No.NB.Secy./  748 / AR-1/2012-13

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT Plot: C-24/‘G’, Bandra-Kurla Complex Post Box: 8121, Bandra (East) Mumbai - 400 051

12 July 2012 21 Ashadha 1934 (Saka) The Secretary Government of India Ministry of Finance Department of Financial Services New Delhi- 110 001 The Governor Reserve Bank of India Central Office Mumbai- 400 001 Dear Sir In pursuance of Section 48(5) of the National Bank for Agriculture and Rural Development Act, 1981, I transmit herewith the following documents : i. A copy of the audited Annual Accounts for the year ended 31 March 2012 alongwith a copy of the Auditors’ Report and
st

ii. Two copies of the Annual Report of the Board of Directors on the working of st National Bank during the year ended 31 March 2012.

Yours faithfully

Prakash Bakshi

Jayakumar Shri D. K. Khan Prof. Batish Prof. 1981 Shri K.Board of Directors Dr. L. Trilochan Sastry Prof. 1981 Shri H. 1981 Shri J. Sharma Directors appointed under Section 6(1)(c) of the NABARD Act. Prakash Bakshi Chairman Directors appointed under Section 6(1)(b) of the NABARD Act. M. K. Basu Shri S. R. B. Vijay Kumar Shri Umesh Kumar Directors appointed under Section 6(1)(e) of the NABARD Act. 1981 Shri P . Dipankar Gupta Directors appointed under Section 6(1)(d) of the NABARD Act. Gupta Shri Shaleen Kabra .

.

........................101 • Sources of Funds ............. 108 Balance Sheet ....................................4: UPNRM Projects – A success story of Kamadhenu project in Chittoor district................................................................93 • Human Resources Management .......................................................................................................................................................89 V....................................................................................................................................................................................96 VI................19 • Investment Credit ......................... Organisation.................93 • Management ...............................................................i I....................................................... 141 Abbreviations ...........................................................................................................................................................................................................................................................................1: Measures adopted to Contain Inflation and Food Inflation................................................................................................................................................................................................ Financial Performance & Management of Resources .............................. 66 4...................................... Rural Economic Environment...........................143 Contents Boxes 1..............................................................1: Rural Infrastructure Promotion Fund (RIPF).................................................................................................................................................................................................................................59 • Micro-Finance ............................................................................................................... Development and Promotional Initiatives.............................................................................................1 Economic Scenario ..............................................................................................................................................................................5 II...................................................................1: GoI Revival Package for STCCS : Impact Assessment Study...................................................................................................................... 43 3........................................................................................................................................................... Business Operations..................................67 • Research and Development Activities.......................................... 42 2.....................2: Application Service Provider (ASP) Model of CBS.........................................................................................................................................19 • Production Credit .......68 IV...................................7: Salient features of Scheme for Promotion of Women SHGs in backward districts of India and Left Wing Extremism Affected districts of India......... 8 2............................................................................. 46 3..................................................45 • Farm Sector ......................................................................................................................................... Capacity Building of Client Institutions..................... 58 3.................................................................................2: New model in wadi.....................................6: From “Red Light to a “Ray of light” through JLG in Munger.............................103 • Income and Expenditure ...75 • Supervision of Banks .................................62 • NABARD Consultancy Services............................... 42 III.................................................................................................. 48 3............................................................................................................................................ 140 Regional Offices/Cell/Training Establishments .................................................................................................................................... 56 3............................................... Corporate Governance and Management ..................................................................................................................................................................................................................................................................34 • New Business Initiatives........................................................................................2: Supply-side Constraints...............1 Agriculture & Rural Economy ................................................................ 110 Schedules to Balance Sheet .................................................................................................................................................................................................................. 111 Cash Flow Statement ................................33 • Rural infrastructure Development Fund................................................................................................................. 134 E-mail Addresses of NABARD Head Office Departments at Mumbai ........................45 • Credit Planning ................................................................................................... 85 ...............................................................................................94 • Administration and Other Matters. 133 Consolidated Financial Statements 2011-12 .....................Page No..................................................................................................................................................................................................................58 • Financial Inclusion ...............105 Annual Accounts 2011-12 ........................................................................................................... NABARD at a Glance Key Data References Principal Officers Highlights ..... 4 1.................................................................................................................5: Vocational training through micro-loan: PanIIT-NABARD model..............1: Impact Evaluation Findings of Watershed Projects......75 • Institutional Development..........3: Pilot Project on Mobile Kisan Credit Card.......................................................................................................................................................................................... 64 3............................................................................................................................................................................................................................ 49 3........................................................107 Auditors’ Report ......................................... 109 Profit and Loss Account ........................................................................................................................................................24 • Financing Rural Infrastructure...............................................101 • Uses of Funds ........................................................................................................................45 • Rural Non-Farm Sector................................................................................ Bihar..............................

.

.5 Table 4..... 34 Chart 2............... 3 Chart 1....................RIDF I to XVII...............1 Table 1..... 14 Chart 1..........6 : Economic Indicators......12 : Cumulative Economic and social benefits.......... and Yield of Principal Crops during 1980-1990.........9 Table 1.....9 Table 3...... 77 : Region-wise Working Results of SCARDB .......10 : Sub-sector-wise Ground Level Credit Flow for Agriculture & Allied Activities............................14 : Elected Boards under Supersession.... 104 Table.10 : Allocations....... 10 Table 4.......... 39 Table 2...... 63 : Comparative Position of Income earned from Consultancy.. 95 : Sources of Funds................... 5 : Trends in Rainfall and Water Storage..........7 Table 4.........4 Table 4....... 38 Table 2...................................4 : Tranche-wise Allocations ...... 101 : Uses of Funds............................................................................................................... 86 Table 4.... 80 Table 4. 1 : Sectoral Growth Rates of GDP................11 : Frequency Distribution of Co-operative Banks According to Range of Loan Recovery Percentage....................... Sanctions and Disbursements....3 Table 1......... 3 : Trends in Exports and Imports.........4 Table 2...................................................5 Table 1................ 53 : Progress under UPNRM....... 27 Chart 2......15 : Indicators of Performance ........17 : Frequency Distribution of States According to Levels of Recovery of RRB...................... 26 Chart 2..............3 Table 3.13 : State-wise Expected Benefits under RIDF........ 72 : Growth of Short-Term Co-operative Credit Structure .................. 6 : Compound Growth Rates of Area...................2 Table 1........... 20 : Sanction of ST(SAO) Credit Limits to RRB for the year 2011-12................... 61 : Progress of the Micro-Finance Programme................................1 Table 3.7 Table 1...... 35 Table 4............. 62 : Grant Assistance Extended to various Partners in SHG-Bank Linkage Programme...................... 81 Table 4......................... 11 Table 1..2 : Agency-wise Share in Refinance Disbursement.......... Consumption and Exports of Major Plantation Crops .........................8 : Short term refinance (production credit) for the last five years ......... 2 : Drivers/Causes of Inflation in India.......11 : Production of Major Crops.. 36 ..... 37 Table 2.................. 95 : Total Staff Strength........... 76 : Accumulated Losses ............4 Table 1....13 : Area and Production of Major Horticulture Crops....... Production...11 : Utilisation Percentage of RIDF (I TO XVII) ...14 : Agency-wise.1 Table 5.................. 87 Table 4..... 88 Table 5..............................18 : Status of Financial Inclusion .......1 Table 3............................................................... 19 : Sanction of ST(SAO) Credit Limits to SCB for the year 2011-12.............. 76 : Working Results of Co-operative Banks .............7 Table 2.......................7 Table 4....2 Table 2.................. 55 Charts Chart 1......... 15 Chart 2.....4 Table 3....................................6 Table 2.. 15 Table 2.5 : The progress under FIF & FTTF... 79 Table 1................... 9 : Agency-wise Ground level Credit Flow......9 : Activity-wise Cumulative Sanctions...... 26 : Region-wise Disbursement of Refinance.....5 Table 2...............................1 Table 2.... 8 : Production and consumption of fertiliser. 12 Table 1................. 1990-2000 and 2000-2012 ......... 39 Table 2.3 Table 2....2 : Promotions effected during the year.................................8 Table 1.............. 40 Table 3................................... 81 Table 4.........1 : Financial Support by NABARD. 11 Table 1................ 79 Table 4.1 : Monthly Inflation Rates for Major Subgroups of WPI (2011-12)..................12 : Frequency Distribution of States/UTs according to Level of Loan Recovery of SCBs and DCCBs.. 78 : Composition of NPA of Co-operative Banks.............. 68 : Training of RFI Personnel...2 Table 6................ 2..Tables Table 1... 7 : Requirement & Availability of Seeds in India...........................................2 : Share of Agriculture & Allied Sector in Total Gross Capital Formation........2 : Externally Aided on-going Projects.........4 : Sector-wise Cumulative Share in amount Sanctioned..........3 : Region-wise Share in Refinance Disbursement................3 : GCF in agriculture as a percentage of GDP orinating in agriculture............ 78 : Region-wise Working Results of PCARDB............................. 28 : Sector-wise Projects and Amounts Sanctioned under RIDF XVII......................... 24 : Agency wise disbursement of Refinance ..2 Table 4.......... 87 Table 4......................................................................3 Table 4.................6 Table 4..... 75 : Growth of Long-Term Co-operative Credit Structure........................ 19 Chart 2..... 27 : Sector-wise Disbursement of Refinance.. Year-wise Kisan Credit Cards Issued ..13 : Frequency Distribution of States/UTs according to Levels of Loan Recovery of SCARDBs and PCARDBs.....6 Table 3...............12 : Production.... 76 : Region-wise Working Results of SCB.............16 : Region-wise Working Results of RRB .................RRB..........................10 : Percentage of Recovery of loans to Demand ....... 77 : Region-wise Working Results of DCCB .....1 Table 6... 80 Table 4................................8 Table 4..... 22 : Rates of Interest on Refinance..... 13 Table 1...................

622 5.141 4.453 (-)64 5.203 Term Money Borrowings 182 110 72 RIDF Deposits 75.000 14.107 67.344 13.577 2 d) SIDBI Equity e) AICI Ltd.203 1.546 799 h) Co-finance 72 (Net of Provision) Fixed Assets Others Assets Total 225 2.782 (-)16 (-)5 (-)50 23.038 680 1.461 (-)1.408 11.545 Investments in NRC(LTO) Fund 14.345 5.878 7.117 2.378 f) Other Loans g) RIDF Loans Other Liabilities 6.144 2.075 1.147 36 1 48 60 34 5 0 26 58 1.000 1.862 225 1 (-)401 17 0 0 0 16 0 (-)390 16 58 (-)825 150 0 Foreign Currency Loan 503 503 0 12.872 .479 14.82.584 26.762 2 140 2.860 33.885 193 25.171 (-)1218 Total 1.58. g) Nabcons Bonds and Debentures 38.225 3 Reserves & Surplus 13.548 19 1 48 60 18 5 390 10 0 1.203 Commercial Paper 2.313 231 10538 228 (-)2.338 129 30.796 h) Mutual Fund/VCF i) Biotech Venture Fund Borrowings from GoI 85 124 (-)39 j) Treasury Bills k) Commercial Paper Borrowings JNN Solar Mission 33 0 33 l) Non Convertible Bonds m) Equity Shares of Other Institution n) Debentures in Nature of Advance o) Certificate of Deposits Certificate of Deposits 1.788 11.323 70.872 23.000 2.075 1.432 0 167 182 66.281 137 1.245 6.229 d) Interim finance e) LT Non Project Loans STCRC Fund 20.58.579 1.327 2 (-)27 2.078 88 230 2.358 Loans and Advances a) Production & Marketing Credit b) Conversion of Production Credit into MT Loans c) MT & LT Project Loans 48.863 1. Sources of Fund Capital 2012 NABARD AT A GLANCE (` crore) 2011 Net Accretion 3.468 11 a) GOI Securities b) ADFC Equity c) AFC Equity NRC (Stabilisation) Fund 1.82.448 (-)4.000 Uses of Funds 2012 2011 Net Utilisation Cash and Bank Balances Collateralised Borrowing and Lending Obligation 8.037 375 1 2. Deposits 291 277 14 f) NCDEX Ltd. & MCX Ltd.470 Other Funds 4.953 6.520 14.

01 4. of projects – - – – SHG Loan Disbursed* lakh 15.87 R&D Fund .852 12 13 SCC Issued lakh 1. 324 317 1. 3 3 216 190 ST (OSAO) - RRB – – – 600 677 Refinance .Contracted No. 81 80 9.352 5.269 Development Initiatives Watersheds No.NPA Position % to loan O/S 3.927 ^ Performance of RFI ST Co-operatives SCB in profit @ No.79 8.96 4. 75 79 2.NPA Position SCARDB .486 15. of projects 122 108 11 8 REDP No.80 252.247 LT Co-operatives . 3. 21 23 23.61 16.779 18. 66 41 – – FIPF.Sanction No.NPA @ % to loan O/S 5187 51.40 345.291 5. 8 3 12 14 RIDF Loans - Sanction No.13 26.94 514 496 FITF & FIF No.20 3rd AE – – Sugarcane production million tonnes 342.701 - Disbursement – – – 12.315 20.promotional programmes No.68.162 18.84 9.719 DCCB .69 13.421 2.NPA @ % to loan O/S 8.projects No.86 11.SCB No.20 0.67 Business Operations Financial Support by NABARD – – – 60.759 33. of clubs 21.9 AE – – South-west Monsoon % deviation from normal 2 1 – – GLC % increase 21. of projects 512 395 45 45 Farmers’ Club No.469 RRB . 8 8 41 136 RIF.07 43.70 4.09 17.82.799.574 SHG – – 2.996 - RRB No. 260 240 – – RRB@@ No.NPA Position SCB . of projects – – 1.889 4. of projects 41.422 Farm Sector – – – 5.58.5 QE 13.09.545 3.16 10.00 35.4 6.060 14.457 LT Co-operatives SCARDB in profit @ No.50 31.903 2.116 PCARDB .ST Credit ST (SAO) - SCB No.14 – – Inspection of banks@@ No.Investment Credit 13. 10 5 401 367 PCARDB in profit @ No.370 54.073 Co-financing projects No. 42 48 – – Financial Performance & Management of Resources Total Working Funds – – – 1.0 QE 2.040 Foodgrains production million tonnes 244.075 QE : Quick Estimate RE : Revised Estimate P : Provisional 1 : At Factor Cost at 2004-2005 prices + : Includes agriculture.691 1.396 15.5 – – Agri GDP 1+ % Growth 7.872 1.483 82.648 6. 45 41 – – Tribal development projects No. 29 29 491 521 DCCB in profit @ No.8 RE – – Share of Agri GDP in total GDP % 14. of projects 62 88 24.548 Consultancy Assignments . 295 329 401 367 ST Co-operatives .834 RRB RRB in profit No.60 3rd AE – – Oilseeds production million tonnes 32.339 Refinance .81 5.00 3rd AE – – KCC Issued million 10.75 4.926 Weavers’ .525 NFS – – – 3. * : Data pertain to 2009-10 & 2010-11 .06 44. 126 98 374 291 FTTF No.NPA @ % to loan O/S 12.NPA@ % to loan O/S 45.70 3rd AE – – Cotton production million bales++ 33.327 9.96 14.KEY DATA REFERENCES Particulars Unit Numerical Value 2010-11 2011-12 Amount (` crore) 2010-11 2011-12 Economic Indicators Overall GDP 1 % Growth 8. forestry and fishing ‘++ : Of 170 kgs each ‘@@ : Statutory Inspections ^ : inclusive of warehousing refinance to Banks @ : Data pertains to financial years 2009-10 & 2010-11 AE : Advanced Estimate.96 11.5243 – – NABARD-KfW Projects No.446 3.453 14. 302 319 – – CCB@@ No.055 6.

Venkatesh Tagat P . Mohan Doss (Bihar) Niraj Kumar Gupta A. Rabra (Jammu & Kashmir) . Padmanabhan R. L. Amalorpavanathan (BIRD. Ratnoo (Rajasthan) K. Kumbhare J. Lucknow) Mahinder Kumar N. K. R. Ramakrishna Rao B. Sayeed Ali (Haryana) H. Gopalakrishna P . K. Satish K. Nair S.K. Mudgal Smt. L. K. Dave (Gujarat) M. A. Menon V. S. Mitra V. Saravanavel (Jharkhand) A Lahiri K. K. S. Jindal (Punjab) K. Shashidhar (Kerala) Dr. S. Muralidhara Rao Dr. C. Rajender Singh A. Mohanaiah (Andhra Pradesh) M. N. Krishnan (Uttar Pradesh) Dr.K. Gupta (Odisha) S. G. Shekhawat CHIEF GENERAL MANAGERS (Rural Development Banking Service) C. D. Srivastava K. R. Mukhopadhyay (NRMC) S. Venkatesan (Tamil Nadu) Dr. Ashok (Maharashtra) K.V.PRINCIPAL OFFICERS (31 March 2012) EXECUTIVE DIRECTORS S. Akbar (Madhya Pradesh) A. S.C.. Jinnah (Karnataka) K.

K. Srivastava (Legal) Neeraj Kumar (Technical) Dr. K. I. M. Remesh (Tripura) M. Kulkarni (Goa) R. V. S. Sandilya D. R. Chaudhri (Sikkim) S. Kulkarni (Economic) J. S. Das (Mizoram) M. Chintala (New Delhi) Subrata Gupta Jiji Mammen (Rajasthan) S. Venkateswara Rao M. N. Baheti (BIRD. Kummur G. Bansal (Chhattisgharh) A. Saha (Nagaland) Dr. N. P . M. Pynadath (Technical) OFFICERS-IN-CHARGE OF REGIONAL OFFICES/ CELL TRAINING INSTITUTIONS R. R. Ganagi R. Deshpande (Bihar) S. U. Bolpur) S. Nemlekar (Manipur) N. V. Padmanabhan (West Bengal) CHIEF GENERAL MANAGERS (Legal/Technical Service) U. Athirstavel (Andaman & Nicobar Islands) P . S. N. D. K.Naresh Gupta (Himachal Pradesh) S. Mishra (BIRD. Selvaraj (Uttarakhand) K. C. Wankhede (Meghalaya) S. T. Mangalore) Dr. Chalia (Arunachal Pradesh) Des Raj (Srinagar Cell) .

.

Moderate growth rate of agriculture (2. Consumption expenditure grew. The decline was due to a shortfall in the area under jowar in Maharashtra. the inflationary pressures during 2011-12 in India was due to the interplay of a number of immediate and some underlying long-term factors such as high price of primary articles driven by vegetables.8 per cent) was in the backdrop of several constraints which are long term in nature. Indian agriculture growth has been varying considerably at the state level. Rajasthan and Gujarat. Gujarat and Haryana.267. Increase in agricultural exports has been mainly due to higher i exports of basmati rice.). This happened despite a decline in overall area under food grains during 2011-12 (1. bajra in Maharashtra. Therefore.5 per cent. mainly due to largely consistent private consumption. increasing global commodity prices. and in pulses in Maharashtra. Uttar Pradesh. 7. Andhra Pradesh and Rajasthan.0 per cent in the preceding year). 4.65 lakh ha. Growth of consumption expenditure and gross fixed capital formation in real terms was 6.9 mm of rainfall which was 1. castor oil and tea. Since a large part of agriculture depends on rainfall. However.13. was a positive feature. registering a growth of 24. The area under coarse cereals and oilseeds has also come down as compared to the previous year. Indian economy. etc. meat and meat preparations. Lower growth of 6. eggs and meat brought about by changing dietary pattern.117 crore during 2010-11 to `1. though at a lesser rate. implying that uniform prescriptions across the states may not work. Both domestic and global factors determined the inflationary trend.5 per cent in 2011-12 which can be attributed to the slowdown in the world economy.0 per cent and 5. dealing with high and increasing volatility in the wake of climate change. 8.2 per cent in 2010-11) as also agriculture sector (2. which briefly touched double digits in September 2011. it was the services sector which held India’s growth performance together.Highlights Economic Environment 1. in 201011.6 per cent. small holders contribute significantly to food security. during 2011-12. With near double-digit growth. one of the key drivers of global growth. Production of food grains during 2011-12 was at an all time record level of 252. tight monetary policy and cutting back on the fiscal stimulus. Small farmers. compared to 8. Moreover.5 per cent in the economy was mainly on account of slippage in the manufacturing sector growth (3. Estimates suggest that with 51 per cent share in the value of agriculture output.8 per cent against 7. Financial year 2011-12 started off with a headline inflation of 9. is going to be a major policy challenge.6 per cent in January 2012. receiving 899. Agricultural exports increased from `1. . Reservoirs also showed normal levels of water availability. respectively. the biggest challenge today is ensuring that the small holders do not get marginalised and excluded from the benefits of the growth process.7 per cent. Evidence shows that besides tackling low growth in the agriculture sector. who form 83 per cent of the numbers. had a relatively slower GDP growth at 6. 6. now operate about 41 per cent of the total area. 5.1 per cent and 7. after remaining persistently high over the past two years showed signs of moderation towards the end of 2011-12. before coming down to 6. as well as to domestic factors such as inflation. indicating that the base of Indian agriculture is getting smaller.92 lakh ha. 3. 2.9 per cent as against 7.254. The shift in the nature and causes of inflation in India was a natural fallout of the structural changes that the economy had undergone.56 (3rd Advanced Estimate) million tonnes mainly due to increase in production of rice and wheat. raw tobacco. 41.) as compared to 2010-11(1. Headline inflation.095 crore during 201112.73 per cent.0 per cent more than the Long Period Average (LPA) during the South-West monsoon (June-September) 2011.

seed sector in agriculture & allied sector in total GCF over the past few years has been hovering between 6 and 8 per cent as compared to about 18 per cent observed in early 1980s. there has been a shift in the demand from cereals to non-cereal food items like pulses. Agriculture credit growth as a facilitator. 15. During 2010-11. fruits.2 per cent of the target.09.66 million cards (38. Capital in agriculture in is being increasingly formation agriculture exhibited an improved performance.000 crore of credit flow to agriculture for 2011-12. 6. 11. During 2010-11.06 million cards (46. 277. wheat. 14. 2012 at 26. 8. edible oils.3 lakh quintals of certified/ quality seeds were distributed.24 thousand hectares has been created by States from major. the need for substantial increase in investment felt. implying that the non-agriculture sectors have been receiving higher investment resulting in growth disparities. while groundwater.33%) and Regional Rural Banks with 17. medium and minor irrigation projects under the Accelerated Irrigation Benefit Programme (AIBP).09%). Despite making efforts to develop irrigation.616 crore. As against the target of `4. respectively. Yet keeping in view the high population pressure on agriculture. the stagnant share of the former is a matter of concern. which is in conformity with the development patterns observed elsewhere. an irrigation potential of 566. This is in line with the falling share of agriculture in the overall GDP .239 crore.8 per cent growth over the previous year. as compared to their demand. the banking system disbursed . and located in resource poor regions.254 crore in 2010-11) now primarily relies on private investment. the major source of irrigation. The share of Gross Capital Formation (GCF) the range of 7 to 8 per cent. 10. achieving 107. suffers from over-exploitation in most of the States resulting in steep decline in the groundwater table. registering 13.53 lakh quintals. The food inflation during the year were largely due to the constraints experienced in increasing the supply of these commodities in the short run. arhar.19 million cards (15. vegetables.040 crore as on 31 March 2012. The procurement of rice and wheat as on March 1.53 and 7. Of the 113.67. 17 per cent and 11 per cent of the total credit flow during 2011-12.07 million KCCs were issued by banks with sanctioned credit limit of ` 54. respectively. Commercial banks.79 per cent. On the agricultural inputs side.0. These regions are home to a majority of small and resource poor farmers whose contribution to food and nutrition security has been acknowledged.9.42. Therefore. 65 per cent of agriculture is rain-fed in 1998-99 has facilitated smooth flow of credit to farmers. 12.41 and 13. 10. dairy products. With urbanisation and economy growing in ` 5.78 per cent as compared to the corresponding date last year. During 2011-12. constituting 72 per cent. Production of breeder and foundation seed reached 1. Kisan Credit Card (KCC) scheme introduced ensuring adequate water availability for agriculture is becoming an increasingly important concern.75. Nearly. ( `1. ii been consistent during the past few years. respectively during 2010-11. 16.19 and 17. moong and urad increased by respectively.73. `86. commercial banks issued 53.68. during 2011-12 over 2010-11. Minimum Support Price (MSP) for common 14.3 million tonnes. There was no change in the MSP of cotton. 10. has paddy. 13.63 per cent and increase of 25.269 crore. Cooperative banks and Regional Rural Banks disbursed ` 3. represented a decline of (-) 21. The efficiency of surface water irrigation has been on the decline.185 crore and `54. 17.58%) followed by Co-operative Banks with 43. there is a need for greater understanding of rain-fed agriculture and framework for its development.91 million credit cards issued cumulatively. meat and fish. Considering that public investment has an enabling effect on private investment. These accounted for 70 per cent of the wholesale price index (WPI) basket for primary food items.8 million tonnes and 28.

Madhya Pradesh (266).236.925. During 2011-12.61 crore during 2011-12 with 100 per cent achievement level.339. 24.48 crore. The total financial support extended by per cent in Eastern Region and 55 per cent in the rest of the country. upto 35 per cent in Eastern region and 30 per cent in the rest of the country.70 crore for the Oilseeds Production Programme (OPP).66 crore to 81 RRBs under ST-SAO as against `9. Weavers’ marketing (HWG) against ` 215. So far.91 crore for National Pulses Development Programme (NPDP). Six RRBs in the North-Eastern Region were sanctioned credit limit of `104. RRBs were also provided additional refinance aggregating ` 190. a separate direct credit window facility was launched for well-functioning Central Co-operative Banks.32 crore.01 crore were sanctioned to three SCBs (Andhra Pradesh.69 crore) activities have for as production.18. as on 31 March 2012. The total production credit disbursed.34 crore to 21 SCBs during 2010-11.925. NABARD sanctioned limits of outstanding of `33.366). only to enhance crop loans disbursed by them.13 per cent over 2010-11. 22. have a critical bearing on the policies and per formance of NABARD. With a view to augmenting ST-SAO Refinance NABARD during 2011-12 stood at `82. ` 285. RRBs were eligible for refinance upto 55 per cent of their crop loan disbursements in North-Eastern and Hilly Regions. ` 251. In addition. Production Credit 20. Odisha (1. NABARD sanctioned refinance to Regional Rural Banks and Public Sector Banks for financing Primary Agriculture Credit Societies (PACS) against promissory notes.66 crore with 100 per cent achievement level under the limit sanctioned during 2011-12.57 crore for National Pulse Development Programme (NPDP) and `1. GDP. Thus. In order to enhance ground level credit for of 10 per cent for 2011-12. 4.29 crore for Oilseeds Production Programme (OPP).47 Population crore for the SCBs Development reached a of Tribal (DTP). Tamil Nadu` 122 crore & Puducherry` 7. The limit included `1. The maximum outstanding was `13. was ` 48.995. subject to the Banks furnishing a declaration in writing setting out the purposes for which they have made loans and advances or any such reasons as may be required by NABARD.` 60. 21.47 crore was sanctioned to Public Sector Banks for financing PACS. A credit limit of ` 79. it was decided to provide additional refinance of 10 per cent for the year 2011-12 only.67 crore as compared to `23. Thus.69 crore sanctioned to 80 RRBs in 2010-11. ST-SAO credit limits were sanctioned to 23 SCBs aggregating `33.171.759.995.75 crore during 2010-11. which was fully utilised by them. Bihar (82) Jharkhand (500). SCBs were eligible for refinance upto 70 per cent of their crop loan disbursements in North-Eastern and Hilly Regions. The significance of agriculture sector in Its wide-ranging impact on reducing growth is well-recognised The structural concer ns and other issues brought out above. ST (Weavers) credit limits `13. 60 iii .799. tackling inflation and achieving inclusive Business Operations 19. Handloom procurement. Uttar Pradesh (272).062 HWGs have been credit linked. Andhra Pradesh (1. 23.90 crore for Development of Tribal Population (DTP) and `27. maximum to farmers through the co-operative credit structure. During 2011-12. India is not merely restricted to its contribution to pover ty. The credit limits included `3. crop loans by Co-operative Banks.624 Groups been formed in various States viz.106. During 2011-12.258). Assam (272).981 crore.94 crore. Of these. West Bengal (88) and in other States (520). registering a growth of 36. 2. 25.

to SCARDBs was extended as term loans as against the earlier practice of contribution to floatation of debentures. The Interest subvention for 2011-12 was estimated at ` 3. Odisha.18%) followed by SHG (19. capacity building. West Bengal and Karnataka. the refinance disbursement for investment credit for farm and non-farm sector activities was ` 15. NABARD has been designated as the “implementing agency” (@ for channelising per individual the Margin & Money Interest ` 4. provided the ultimate borrowers were given loans at 7 per cent interest rate per annum. Uttarakhand. western (10.75 crore. technology upgradation and introduction of Common Accounting System and Management Information System. SCARDBs and SCBs have availed of refinance amounting to ` 2.000 crore. ` 200. Gujarat.84%).884 crore.03%). the major share of refinance has been accounted for. refinance Farm Mechanisation (13. So far. NABARD continued to act as the nodal agency for GoI package for restructuring of term loans of co-operative sugar mills.995.433.. scheme The continuance of the interest subvention was announced in the Union Budget 2011-12. UP.60%).92%). GoI vide its notification dated 9 January 2012 issued operational guidelines for “Institutional Credit” component under the Integrated Handloom Development Scheme (IHDS) for the handloom sector in the country. Punjab and Karnataka.18%) and Plantation & Horticulture Subsidy (@ 3 per cent per annum for 3 years) components under the Package. The first instalment of ` 7. Out of `200. Animal Husbandry (10. 19 States have given their consent to implement the package in their States out of which. Sponsored Plan Scheme on “Revival. AP . making interest subvention available at 2 per cent per annum to public sector banks.200/weaver) Investment Credit 30. (10. During 2011-12.192. followed by northern (15. tripartite agreement has been signed between GoI. Out of ` 383. Maharashtra. Goa. With effect from 2 September 2011. all SCARDBs are eligible for refinance of 90 per cent of the eligible bank loan disbursed. respectively and RRBs have availed of refinance amounting to ` 3.57 crore has been released by the MoT.70 crore as against the budget of ` 14. The Ministry of Textiles (MoT). and north-eastern region (1.00 crore.086. Finance In the Budget speech for 2011-12. by NFS (23. GoI to be passed on to the banks. Interest subvention was given to NABARD for providing concessional refinance to SCBs and RRBs at 4.26. The spatial distribution of refinance disbursement across regions indicated that a major share had been accounted for.38 crore was released to 212 sugar mills operating in 11 States viz. During 2011-12.20%). by the States in the southern region (48.13 crore received from GoI towards interest subvention.29 crore. Tamil Nadu. NABARD also acted as the nodal agency for routing interest subvention to co-operative banks and RRB under “Scheme for extending Financial Assistance to Sugar Undertakings 2007”.80%). Additional subvention of 3 per cent was announced for 2012-13 to those farmers who repaid crop loans promptly within one year of disbursement. central (12. co-operative banks and RRBs for deploying their own funds for crop loan upto ` 3 lakh per farmer. iv . Uttarakhand. ` 383.421. Madhya Pradesh.93 crore and ` 1.7%). 28. Kerala. The revival package includes waiver of overdue loans.5 per cent interest rates. Under the new system. eastern (11. be implemented by NABARD. NABARD and the Governments of Andhra Pradesh. 27.02 crore was disbursed to 76 co-operative sugar mills in Maharashtra and Odisha. the Minister announced that a Centrally 29. 31.10%). Commercial Banks have availed of refinance amounting to ` 8.60%). During the year 2011-12.19 crore.59 crore received from GoI during the year 2011-12 towards interest subvention.444. Reform and Restructuring Package for Handloom Sector” with a total outlay of ` 3.

35.e.5 per cent (i. A state-wise analysis of ratio of disbursements to the approved phasing of sanctions reveals that Mizoram topped with 132 per cent.493.009 crore as on 31 March 2012. Government of under various tranches (RIDF I to XVII). Tamil Nadu and Puducherry.62.000 crore for financing warehousing under RIDF. had a total pool of projects of quick grounding of RIDF projects.470. Consequent upon the change in bank rate from 6 per cent to 9.42. low cost.927 crore (inclusive of ` 759 crore sanctioned and released as refinance under Warehousing facilities to Banks).31 crore. The Fund also aims at creation of critical. education and rural drinking water supply. last-mile rural infrastructure that would benefit the village community at large and form the basis for larger infrastructure projects under RIDF. stood at `1. including irrigation and power. 39. v . while the share of rural roads and bridges was 31 per cent and 12 per cent. The The cumulative deposits received under RIDF total loan outstanding under RIDF as on stood at `1. State Governments `1.5 per cent below the prevailing bank rate. 15 per cent to social sector projects like. the rate of interest payable to NABARD by the State Governments has been fixed at the earlier bank rate viz.162 projects Kerala (95%).000 crore under RIDF XVII during 2011-12.20%). out of which `2.82 crore. rural bridges (12. Meghalaya (100%). 8 proposals amounting to `0.000 crore under RIDF I (1995-96). Among the new steps initiated in 2011-12 for Approvals (AA) from the State involving a loan amount of `20701. was `70. Karnataka.493. 34. Haryana and Uttarakhand (93%). Loan disbursements from RIDF to the State Governments on or after April 01.Rural infrastructure Development Fund 32.52. followed by Goa (106%). During the year.860. disbursements were made to the tune of `14. Manipur (96%). Maharashtra and India (GoI) had made a dedicated allocation of `2. Cumulatively.50 per cent followed by rural road projects (24. 6 per cent plus 0. Taking into account phasing of the projects. The Corpus of the Fund has grown to `18.94 crore as on 31 March 2012. to four State Governments viz.f. 13 February 2012. The small investments under RIPF is expected to attract and make larger investments feasible under RIDF.000 crore under Rural infrastructure Development Fund (RIDF) XVII (2011-12) from an allocated amount of `2.5 per cent w. 18. In the Union Budget 2011-12. The Union Budget for 2011-12. respectively. irrigation projects accounted for 27.56 crore have been sanctioned under RIPF. 37. health. 33.65 crore as on 31 March 2012.229 projects were sanctioned since the inception of RIDF involving an amount of `1.025. Bihar. Of the total number of projects sanctioned.11.500 crore (which is inclusive of `18.12 crore were sanctioned under RIDF XVII. taking the cumulative allocation to `1.500 crore under a separate window for funding rural roads under the Bharat Nirman Programme).90%) and agri related projects (9. NABARD set up the “Rural Infrastructure Promotion Fund (RIPF) with a corpus of ` 25 crore on 1 September 2011 for augmenting the skill sets and technical know-how of personnel engaged in the creation of rural infrastructure. 36. social sector projects (17. total sanctions under the scheme. 42 per cent went to agriculture and related sectors. 20 per cent of RIDF was specifically allocated for social sector projects and steps initiated for on-line/web-based monitoring of RIDF projects.e.82 crore was sanctioned for warehousing projects as at end of March 2012. An amount of ` 1. Of the cumulative RIDF loans sanctioned as on 31 March 2012. the receipt of Administrative Governments was made mandatory before submission of projects to NABARD for sanction. 2012 has been fixed at 1. 38. 31 March 2012. 6.30. As on 31 March 2012.90%). Tamil Nadu (92%) and Chhattisgarh (91%). 4. As on 31 March 2012. allocated an amount of `18..5 per cent) till 31 March 2012.000 crore has been exclusively dedicated towards creation of warehousing facilities in different States on a priority basis..70%). As on 31 March 2012.

NABARD Infrastructure Development New Business Initiatives 41. 41 watershed projects were sanctioned under the Watershed Development Fund. The new business initiatives need to be viewed in the above context. against loans extended by them to private entities and the agencies owned/ assisted by government. but they also bring more Assistance (NIDA).29 lakh ha. An aggregate amount of ` 759. The cumulative sanctions under NIDA during the year 2011-12 was ` 890. the total sanctions against the allocation of ` 2. NABARD support up NABARD of rural Infrastructure infrastructure Development Assistance (NIDA) to provide credit projects. which are quite demanding in terms of quality and food safety. supported by the Planning Commission. covering 7th year of implementation. are in tune with organisational strategy of ‘business for development’. Ensuring investments in agriculture in the eastern states was another important initiative. Tribal Development Fund programme. along with interest. Participating in these markets poses challenges.85 crore and disbursement of ` 422. has enhanced livelihood opportunities traditional tribal livelihoods such as bee keeping. Sixty one projects graduated to Full Implementation Phase (FIP). (ii) Participatory Watershed Development Development Programme Fund (WDF). The focus of the new initiatives was on excluded areas and the small operators who will have to compete in the markets. new line of financial support for DCCBs.40. Refinance from NABARD was made available at an interest of 8 per cent for a period of 07 years (including a moratorium of 02 years). The new business initiatives thus. with a total commitment (loan and grant component) of `239. NABARD will also provide financial incentive to those borrowers. engaging with the Primary Agricultural Co-operative Societies (PACS) to convert them in to multi-service centers are all such initiatives which eventually have huge development potential and are inclusive in nature. . (i) Indo-German Watershed Development vi Programme (IGWDP). Development and Promotional Initiatives Farm Sector 44. bringing co-operatives on a higher technology platform of Core Banking Solutions (CBS) to create a level playing field to compete with the other banks for business and growth. During the year.07 crore was sanctioned and disbursed to banks.89 crore as on 31 March 2012. building up institutions and arrangements based on principles of aggregation are essential. creation of providing refinance to banks. taking the number of such projects to 316. To take advantage of these. in 15 States. Financing Producers Organizations.252. covering an area of 5. 45. as per the repayment schedule prescribed by the financing bank. These would include co-operatives as well as producers’ organisations and its variants. funds State owned institutions/ corporations both on-budget as well as off-budget for creation of rural infrastructure outside the ambit of RIDF borrowing. 42. under (iii) Prime Watershed Minister’s package for distressed districts in four States and (iv) Integrated Watershed Development Programme (IWDP) in Bihar. NABARD also introduced a scheme for opportunities. for creation of warehousing infrastructure. 43. taking the cumulative number of such projects to 620.99 crore. in its of tribal communities. NABARD anchors four types of watershed development programmes in the country namely.000 crore stood at ` 2. With this. a new line of credit support for funding of rural infrastructure projects. who repay their loans.90 crore. As part has for of set funding the new business initiatives.

63 crore was sanctioned for 98 projects benefiting 72. During the year.103) and SAUs/KVKs/other agencies (807) during the year 2011-12. two new initiatives for the Pilot project for Augmenting Farm under Farm Innovation and Promotion Fund (FIPF) in 14 States with financial assistance of ` 56.. The Fund also supported the pilot testing of the unique mobile-enabled Kisan Credit Project (mKCC) project in Villupuram district of Tamil Nadu.59 crore. 46. One district each has been selected in 11 States for implementation. covering 3. Haryana (Sirsa). Rajasthan (Bikaner).99%) of clubs followed by the Central (24. Odisha. 41 projects were sanctioned (16. During the year.5 per cent per annum to seven Eastern states..208. Maharashtra (Yavatmal). Odisha (Balasore). Karnataka (Belgaum). 395 proposals were sanctioned under FTTF in 29 States with financial assistance of `20. . include During the year. The Umbrella Programme on Natural Resource Management (UPNRM).104). These Productivity in Select Districts and the Pilot Project for Augmenting Farm Productivity in Balasore District. 51.01. technology.89 crore.75 per cent. During the year. 47. West Bengal and Uttar Pradesh.53 crore including the project on “Augmenting Farm Productivity in Balasore District in Odisha” with a grant support of ` 48.359).59 crore as grant. A concessional refinance support scheme was launched by NABARD during the year to facilitate institutional credit flow for key investments in the Eastern Region that have a direct bearing on enhancing crop productivity. 279 Farmers’ Clubs functioned as Business Facilitators/Business Correspondents and 761 Farmers’ Clubs as Self Help Promoting Institutions. while NER accounted for 2. credit. Odisha.83%). the number of clubs reached 1. Southern (18.22. Jharkhand. with a corpus of `100 crore.sericulture. agricultural inputs. With the launching of 25. include (a) Water Resources Development (b) Land Development (c) Farm Equipment and (d) Seed Production units. 48.243 new Farmers’ augmenting farm productivity were launched.52%) and Northern (12. The scheme provides refinance at a concessional rate of 7.23 crore.912 crore. post-harvest management. 49. a new Wadi model was introduced in Alirajpur. Madhya Pradesh that generated income for the farmers from the first year of implementation by combining the mandap system of vegetable cultivation along with cultivation of perennial fruit crops. During 2011-12. The project enabled farmers to transact on their loan accounts with Pallavan Grama Bank using their mobile phones and enter into mobile supported cashless transactions with agriculture input dealers. The cumulative sanction as on 31 March 2012 was `1.08 crore phased over a period of three years. Madhya Pradesh (Shahdol). has supported 104 projects in 16 States with disbursements to the tune of `131.912 families in 415 projects across 26 States/ UTs. Chattisgarh (Bilaspur). Assam.43%) regions. which aims to boost rural livelihoods by supporting community-managed sustainable natural resource management projects. Eastern region had the highest share (24.) Western . Bihar. The cumulative disbursement was `44. viz. The total lending target of the banks for the financial year 201112 was `3. Uttar Pradesh vii Clubs during the year. 50. viz. The key activities for concessional refinance support under the scheme. commercial banks (2. The Pilot Project for Augmenting Farm Productivity in Select Districts is a comprehensive package for augmenting farm production and productivity by addressing all interlinked components of farming viz. supports adoption of appropriate technologies by farmers. The Farmers’ Technology Transfer Fund (FTTF). NGOs promoted maximum number of clubs (15. Chhattisgarh. RRBs (2.870) followed by co-operative banks (4. Jharkhand (Deoghar). Bihar (Bhojpur).951 as on 31 March 2012.48%.419 tribal families in 16 States. value addition and marketing in a holistic manner. financial assistance of `290. organic wadis and mixed wadis (perennial fruit crops + creeper vegetables + spices).

viii Financial Inclusion 55.32 crore. The focus of SHG-2 would be on voluntary savings. During the year. rating and audit of SHGs as part of risk mitigation system and strengthening monitoring mechanisms. risk-mitigating experiments with potential to promote livelihood opportunities in rural Farm. for a period of three years i. As on 31 March 2011. covering around 6.211. there were more than 74.09 crore during 2011-12.mile banking. 59. promotional and Information and Communication Technology (ICT) interventions leading to financial inclusion are in operation in NABARD. loans amounting to `14.479 Swarojgar Credit sanctioning Cash Credit Limits to SHGs from 17 November 2011. 150 have been completed and 67 are in advanced stages of implementation.73 Cards (SCC) with credit limit of ` 495.62 crore and ` 343.46 crore and ` 184. supported 108 new innovative projects during the year.16 crore. The cumulative total of SCC as on 31 March 2012 was 13. NABARD has so far supported 27. Micro Finance 57. Non-Farm and micro-Finance sectors. from 2012-13 to 2014-15. an organization created by IIT alumni.(Azamgarh) and West Bengal (Nadia). 54.134 SHGs.08 crore to be supported under the Farm Innovation Promotion Fund (FIPF). including a grant component of ` 48. This year. SHG Federations as nonfinancial intermediary. 56. involving a credit limit of `5. avenues to meet higher credit requirements for livelihood creation. respectively and disbursements `36.62 lakh savingslinked Self Help Groups (SHG) and more than 47. respectively. During 2011. The SHG-Bank Linkage Programme was given a renewed thrust with the launch of SHG-2.87 lakh credit-linked SHGs covering 9.93 lakh unemployed rural youth. 58.96. for bringing about higher accountability and transparency in last.e. crore were disbursed to 11. The cumulative projects supported under the Fund are 483 in number. With the sanctioning of 9. the cumulative sanctions under FIF and FITF were `114. 53. as on 31 March 2011 of which. During the year. It is a loan-based approach to vocational training. RRBs were supported for implementation of CBS and card based ICT solutions using the Application Service Provider (ASP) model and for holding financial literacy awareness camps in villages. 94. 800 students have been trained through this model with a 100 per cent placement rate. The GoI communicated its decision of only with grant support of `13. cash credit as a preferred mode of lending.852 REDPs/ SDPs Institutions (CERFI) was set up during the year with the objective of embedding Aadhar numbers into the CBS platform of RRBs.06 lakh.7 crore poor households under the micro-finance programme. technicians and drivers on a pilot basis in collaboration with the “PanIIT Alumni Reach for India” (PARFI).81 crore were issued for facilitating hassle-free credit for investment and working capital requirements of small/micro entrepreneurs.86 crore. NABARD initiated a vocational training programme for blue collar entry level workers like masons. As on 31 March 2012. to support development.547. The Financial Inclusion Fund (FIF) and the Financial Inclusion Technology Fund (FITF). dedicated . The Rural Innovation Fund. The Pilot Project at Balasore District in Odisha has been sanctioned with a total financial outlay of `3.45 crore. scope for multiple borrowings by SHG members in keeping with repaying capacity.711 REDPs/SDPs with grant of `96.445. so as to address the issue of delayed/ limited /non-approval of repeat loans to SHGs. A Centre of Excellence for Rural Financial Rural Non farm Sector 52. welders. cooks. which facilitates innovative.48 crore. to ensure cost effectiveness to clients and to provide greater operational flexibility to SHG clients..

31 crore was released by involving an anchor NGO in each of the selected backward districts of the country. but also as a banking/business facilitator. 1.646 JLGs upto 31 March 2012 taking the cumulative loan disbursed to `2. seven projects/studies sanctioned earlier were completed during the year. non-farm and service sector activities. 63. The NGO will serve not only as an SHPI. `17.14 was sanctioned to various universities..58 crore to 6. ` 0. one for taking up tailoring activity and the other for opening a shop selling bangles. As stated in the Budget Speech of 2011-12.35 crore.67 crore was utilised projects/studies (` 0.07 crore).49 crore were sanctioned. 64. taking the cumulative of other loans disbursed to `5. taking the cumulative assistance to `560. taking the cumulative disbursement to `265. (NABFINS). Further.292 members on various locationspecific farm. seminars from the R&D Fund for supporting activities like ( `0. respectively.60.70 crore).57 crore).43 crore as commission from mutual fund distribution and ` 2. in backward and Left Wing Extremism (LWE) affected districts of India was formulated in association with the GoI. research During the year.95 crore and `17.968 groups. disbursed loans to the extent of `213. An amount of `36. in the previous year. 62. During the year. Loans other than to SHGs were disbursed to the extent of `2. 70. training/summer placement ( `15.64.691 JLGs. `28.87 crore. As on 31 March 2012.29.54 crore to 8.43 crore.914 MEDPs were NABARD Consultancy Services 67. conducted for 56. During the year.30 crore as professional fees on assignments executed.948 participants. symposia and workshops covering subjects/areas related to agriculture and rural development including Green Revolution-II. including 6 assignments for a contract value of ` 26. the National Rural Livelihood Mission. grant assistance of ` 1.86 crore.68 crore was grant support for promotional activities and `4. The scheme will be implemented in 109 selected backward/LWE districts of the country. as a viable and self-sustainable model for promotion and financing of Women Self Help Groups ix research institutes and other agencies for organising 139 seminars.363 MEDPs had been conducted for 1. NABARD Chair Professor Scheme (`0. The company international visitor’s programmes. 61.62 crore as interest on investments.092. Munger for promotion of two JLGs comprising sex workers. 6.85 crore). During the year. as against `29. banks disbursed a loan of ` 946. . 69.94 lakh JLGs across the country till 31 March 2012. “The Micro-finance Review”and its sub-centres research on 41 prioritised themes during the year.10 crore for 2.68 crore was sanctioned as ‘Women SHGs Development Fund” with a corpus of `500 crore was created to empower women by promoting their Self Help Groups. The Centre for Micro-finance Research (CMR) undertook Research and Development Activities 68. It will empower women SHGs to access bank credit. to the Bihar Kshetriya Gramin Bank.01 lakh. 65. NABARD Financial Services Ltd. `33. A new scheme for Promotion of Women SHGs involving a grant assistance of `0. five research projects brought out two issues of its half-yearly journal. 66. conferences.63 crore for CS/RFA to MFIs. Cumulatively.915 SHGs through 67 Business Correspondents (BCs).e. of which. grant for promotion of 1. the cumulative disbursement stood at `153. NABCONS earned `17. During 2011-12. aggregating a total income of `20. crore During the year. During 2011-12.25 crore. A unique project was sanctioned by NABARD during the year. a under Micro-Finance Development and Equity Fund (MFDEF). During 2011-12. NABCONS contracted 88 executed 125 assignments.33 lakh was released by NABARD during 2011-12 to CMR. Grant assistance of `199.48 crore) and other activities (`0.81 crore to 1.30 crore during the year. This Fund will also support the objectives of Aajeevika i.70.

as it is linked to its merger with Aryavrat GB.37 per cent and 0. Rakesh Mohan. working funds was 7. J & K GB has implemented CBS in 90 branches out of 184 branches. State Governments (in respect of co-operative banks) and Sponsor Banks (in respect of RRBs) for corrective action. thus facilitating wider dissemination of the recommendations/action points ‘sustainable inclusive growth’ of India’s development policy.09 per cent and 1.9 per cent.49 per cent). 71. yielding a financial margin of 2. As on 31 March 2012. Resources Conservation Security of and Animal Climate Water and initiate suitable policy interventions by agencies concerned. which were communicated to the banks concerned.26 crore and ` 92.11 per cent. statutory inspections of 319 banks (31 SCBs. etc. earned a net margin of 1. Advances in Aquaculture.Agri-Marketing. respectively.71 per cent in 2010-11. while the cost of funds was 5. SCB as a group earned a positive net margin of 0. RRBs had opened 913 new branches. During 2011-12. the overall return on 75. the then Deputy . Micro Finance. Regional Imbalance – Inclusive Growth. In the case of DCCB. Sustainable Livestock and Poultry Development. Kisan Kshetriya Gramin Bank (UP) has not been able to make any progress on CBS implementation in the bank. To make a perceptible difference on ground. 73. taking the cumulative number of branches of all RRBs to 16. Organic Farming. cumulative sanctions and disbursements were `105.91 crore. Plant Genetic Biotechnology. respectively. while cost of funds worked out to 5. Financial Inclusion. financial assistance of `7.914 spread over 635 districts in 26 States and one UT.41 per cent during 2010-11. The average transaction cost and risk cost as percentage to working funds were 2. during 2010-11.06 per cent in 2009-10. carved NABARD’s development initiatives have been out under the overarching objective of Change. SHG and Women Entrepreneurship and Coffee Research.92 per cent (excluding miscellaneous income of 0. compared to net margin of 1. Registrar of Co-operative Societies (RCS). The grant support extended to the organisers enabled them to document the proceedings and publish background papers. It is now compulsory for all new branches to be equipped with CBS.09 Supervision of Banks 76. Capacity Building of Client Institutions Institutional Development 72. During 2010-11. addressing the concerns of small operators and excluded areas and deploying technology upon finding space for location/product specific viable delivery models. The DCCB as a group. The inspections brought out supervisory concerns relating to these institutions. 74.62 per cent.39 per cent. 240 CCBs and 48 RRBs) and voluntary inspections of 15 SCARDBs have been conducted as on 31 March 2012 as scheduled.30 per cent). as on 31 March 2012. 77. During 2011-12. In the current year. The balance in the Fund as on 31 March 2012 stood at `125 crore. The average transaction cost and risk cost of SCB during the year worked out to 1. RRBs were given a target of opening 2000 new branches by March 2012.01 per cent. resulting in financial margin of 1. x Committee on Financial Sector Assessment (CFSA) (Chairman: Dr.51 per cent (excluding miscellaneous income of 2. respectively. SCB as a group earned overall return of 6. CBS has been fully implemented in 80 RRBs.34 crore disbursed (including disbursements against sanctions of previous years).37 per cent. Economic Reforms and Agriculture. Pursuant to the recommendations of the crore under Co-operative Development Fund (CDF) was sanctioned and ` 5. which can be up-scaled have been the principles which have guided various development initiatives. Food Security.

against repositioning of products and services and set up appropriate structure. USA. 2005 through Video Conferencing for selected Regional Offices at HO. During the year. Mumbai covering 31 ST/SC Group B staff. respectively. etc. respectively. Industrial relations in the Bank continued to conducted by NBSC Lucknow covering 2. thus increasing the number of licensed banks to 332 (28 SCBs and 304 CCBs) as on 31 March 2012. 80. Organisation.049 from NABARD and 103 officials from RFIs) covering Programmes on Watershed Development. Workshops were conducted on Right to Information Act. met once . TDF. Microcredit. During the year. the purpose was also to evaluate organisational structure. 83. types of existing development interventions both internally and through market survey and to design new products. the RBI had revised the licensing norms for co-operative banks during October 2009.72%). Further. The number of licensed SCBs and CCBs stood at 24 and 222. 20 hearings on appeals made to Central Information Commission were attended to. of which 19 grievances and 6 appeals were processed..7 per cent and 1. 84. 1. 744 the facility of the Incentive Scheme for staff members to pursue professional studies. respectively. while the Executive Committee and the Sanctioning Committee for loans under RIDF. The repositioning initiative of NABARD was undertaken with a view to analyse existing financial products and services. The Joint Consultative Committee (JCC) comprising representatives from Bank Management and National Bank Officers’ Association.232 officers (2. “Harvard Mentor 10” in collaboration with Harvard Business School. respectively. RBI issued licenses to 4 SCBs and 82 CCBs.36 %) and 397 to Scheduled Tribes (8. constituting 1. 177 officers completed the e-learning programme. 103 programmes were March 2012 stood at 4552 of which 836 belong to Scheduled Castes (18. The staff strength of ex-servicemen and physically handicapped employees stood at 80 and 88. Five meetings of the Grievances Redressal Committee and three meetings of the Appellate Committee were held during the year. The problems in attaining by the licensing eligibility by co-operative banks in some were reviewed periodically Government of India. Financial Inclusion. One pre-recruitment Training was conducted at IES. Lucknow and Zonal Training Centre (ZTC). Periodic discussions were held between the Management and the All India National Bank Officers’ Association and the All India NABARD Employees’ Association. 79.Governor of RBI). Bandra covering 84 SC/ST participants. 82. HRMS. met once and nine times. During 2011-12. The number of scheduled SCBs remained unchanged States at 16.9 per cent of the total staff strength. C F Institute of USA and Institute of Company Secretaries of India. During the period ended 31 March 2012. ZTC and HO. Various Courses being pursued by employees were CFA. CS and MBA from reputed institutions viz. National Bank Training Centre (NBTC). 20 staff members availed of during the year. One programme each conducted by NBTC.704 officers and 528 officers were trained in in-house and on-location programmes. 81. The Board of Directors met seven times cadre. During the year. Appraisal and monitoring of Infrastructural projects etc. Further. system and processes re-engineering. Corporate Governance and Management 78. Twenty one grievances and six appeals were received. services and networks. The College also conducted pre-promotional training programmes for Group ‘B’ staff for promotion to higher grade in the officers xi be harmonious during the year. Hyderabad conducted 74 training programmes for 976 Group ‘B’ and ‘C’ staff. as on 31 March 2011. During the year. Total staff strength of the Bank as on 31 applications and 101 appeals were received and information provided. Sikkim Manipal University.

During the year. Delhi.408 crore on 31 March 2012 from `13.33 per cent and that of RBI at 0.635 crore. registering an increase of 14. various exposures Services. Agriculture and Official Language for the Central Government have visited NABARD offices at Chandigarh. 86. 85. stood at `3. amounted to `10. The Inspection Reports and Flash Reports containing major areas of concern were placed before the MC and ACB for deliberation and guidance. over the previous financial year.863 crore on 31 March 2011. ID conducted Inspection of 9 Regional Offices and 18 Head Office Departments.202 crore for the year 2010-11. In continuation of the Bank’s efforts in this direction.824 crore and `1. Hyderabad. Ltd. its quality and effectiveness with focus on the follow-up of major areas of concern in housekeeping. Operational Risk Management and other risks facing the bank and guided in devising the policy and strategy containing for integrated risk risk management of the for Bank. as on 31 March 2012. Visits of Parliamentary Committees 87. Government of India infused `1.279 crore. Bank has taken steps in implementing IT by client institutions and apprise the Top Management of the status. Government Assurances. respectively. as compared to `1. as on 31 March 2012. During the year. with the share of GoI being 99. 90. Jaipur. which was received on 31 xii . constituting 23. Patna. The paid up capital. Guwahati. systems as per the IT roadmap. respectively. The ACB reviewed the internal inspection/audit function in the institution .000 crore on 31 March 2011. nine Parliamentary Committees on Subordinate Legislation. implementation of Human Resources Management System (HRMS) and Centralised Loan Accounting & Management System (CLMAS) was initiated after due system studies done in previous financial year. the Audit Committee of the Board (ACB) met four times. Bangalore Mumbai. ID also inspected NABARD Subsidiaries. total market borrowing of NABARD stood at ` 43. while the Concurrent Audit of all ROs/Training Establishments were undertaken by the Concurrent Audit Cells (CAC) set up in the respective RO/TE. while the Risk Management Committee of the Board (RMCB) met thrice.64 per cent per annum during 2010-11 to 6.000 crore capital in NABARD. The concurrent audit of HO departments. As per Union Budget 2011-12. continued to be outsourced to external auditors.075 crore.203 crore.during the year to discuss HR issues.the system. During the year.252 crore and `1. Chennai. Asset and Liability Management. Ranchi.73 per cent of the total resources of the Bank. as on 31 March 2012. 89. in the financial year 2011-12. The financial resources of NABARD increased March 2012. Kolkata. Inspection Department continued to monitor defaults Financial Performance & Management of Resources 88. Bhopal and Mumbai. viz. The amount of reserves and surplus increased to `16.82. Dimapur. in the previous year.67 per cent.000 crore against `2. During the year. The profit before tax and profit after tax stood at `2.979 crore as against `9.96 per cent per annum during 2011-12. The average cost of borrowings (interest expenditure as a per cent of average borrowings) increased from 6. Port Blair. Agri Business Finance Finance Ltd. Shimla. and Agri Development Financial NABARD NABCONS.60 per cent.. Imphal. Chennai. The RMCB oversaw the functioning of Credit Risk Management. The total income of NABARD during the year to ` 1. as on 31 March 2012.

compositional shift in the consumption pattern in rural matter globalisation works through macro parameters.3 Sectoral analysis of growth rates has shown the least inter-temporal variations.0 (-)7.2 the Increasing integration of Indian economy with world economy and greater integration of agricultural sector with the overall economy has thrown up opportunities as well as challenges for agriculture.8(RE) financial year 2011-12 compared to 7.6 6.5 (-)5. 1. *: At current market prices Source: Economic Survey 2011-12. service sector continues to be the mainstay of the economy holding India’s overall growth together. The slowdown can be partly attributed to global factors viz. The growth in agriculture was 2.1). during 2011-12 (Table 1.1 10. the variations in growth rate of GDP are lately being associated with the variations in the industry.9 per cent in the Table 1. its impact is felt at the micro level and channels of its transmission need to be understood and accordingly responded to. GoI unlike the overall economic growth pattern.8 per cent.5 2.5 per cent in 2011-12. Gross Domestic Product The Indian economy continued to be one of the key drivers of global growth. 1.5 (-)2.0 (QE) 6. The contributions of agriculture.1: Economic Indicators Annual per cent change Particulars Overall GDP GDP from Agriculture & Allied Activities Foodgrain Production Industrial Production Inflation as measured by WPI Domestic Savings (as % of GDP) Capital Formation (as % of GDP) Fiscal Deficit (as % of GDP) Imports (% change) Exports (% change) Trade Balance (as % of GDP*) External Debt (as % of GDP*) 2009-10 8.2 40. which registered a growth rate of 3. The sharp distinction between rural and urban is diminishing and a kind of rural–urban Some crux of of continuum this the is is emerging. 1.8 4.1 4.6 33. April 2012.4 per cent achieved in two previous years (Table 1.1 per cent.4 32. respectively.5 3.5 (-) 3.I Rural Economic Environment A.9. where concerns regarding food security and the subsidy regime continue to prevail.7 17.6 2011-12 6.4 23. which is much lower compared to the high level of growth achieved during the previous year.4 1. Economic Scenario a.8 28. hardening of crude oil prices in the international market. the slowdown in the world economy. 27.5 (-)2. industry and services to the GDP were 13. areas.1 2010-11 8. compared to a growth of 8.4 An important feature of agricultural growth. QE: Quick Estimates.4 7.8 7.0 (-)3.8 18. Ministry of Agriculture 2011-12 reveals that the coefficient of variation (CV) of agricultural growth during 2000-01 1 . Central Statistical Organisation.3 35. in the while particularly with service sector occupying the lead in rural areas. such as the imperatives of dealing with inflation by tightening monetary policy and cutting back on the fiscal stimulus.2 per cent in the corresponding period of the previous year.. The State of Indian Agriculture.8 9. CMIE. RE: Revised Estimates. exacerbation of the euro zone crisis. With growth rate just short of double digits.8 36. With the declining share of agriculture sector and consistent growth in the services sector. The captured is that. The slowdown is mainly on account of the sluggishness in industrial sector. as well as to domestic factors. even with its slower Gross Domestic Product (GDP) growth at 6.2).0 and 59. is its volatility.6 29.

0 per cent and 5. the rates of growth of the consumption groups food.7 (100. an overall growth of private final consumption expenditure that was in the range of 7. public sector savings increased from 0.7 10. The growth in these indicators in 2010-11 was 8.3 (14.0) Figures in parentheses indicate percentage shares in GDP QE: Quick Estimates. partly due to the inherent nature of private consumption that does not fluctuate as much as other demand-side components and partly on account of inflationary tendencies.7) (28. and power have generally been lower. The volatility is likely to increase in the years to come in the wake of climate change.2) 2009-10 1. GoI.4 (100.4 (100. gas and water supply and construction Source: 1.4 10.8 3.3 (16.0) (59.0) 8. As against 2 proportion to GDP at current market prices (savings rate) is estimated to have declined from 33. Public savings. 1. this consistency masks large variations between the various commodity groups.5 (14.2 per cent during the period 2005-06 to 2010-11. Consumption.1) (57.8) (54.6 per cent.8 8.2) 2010-11(QE) 7.0 7.9 9.7) (28. Savings and Investments 1. Ministry of Finance. transport communications. electricity. The reduction in the financial savings rate of households could be partly attributable to inflationary tendencies in the economy during the period that resulted in higher growth of private final consumption expenditure than of personal disposable income and partly to a reduction in real interest rate. On the other hand.7 per cent during 2009-10 and 2010-11. However. miscellaneous goods and services have generally been higher.3 per cent during 2010-11. This decline is accounted for by a reduction in private savings.5 per cent respectively.1 to 9.0 8. The Gross Capital Formation . thanks to fiscal consolidation.6 The Gross Domestic Savings (GDS).1) (56. registered an increase.0) 6.6 per cent to 30.4 (15. and tobacco and gross rent. This is almost six times more than the CV observed in the overall GDP growth of the country. Moreover.0) 8.2 9.0) 6. While the private sector savings has declined from 33. on the other hand.8) (57. which tend to reduce savings (on account of reduction in real interest rates) rather than affecting the consumption level in the economy. and somewhat by a reduction in corporate savings.5) (27. manufacturing.8) 2008-09 (-)0.9 (100.5 The growth in real terms of consumption expenditure and gross fixed capital formation works out to 6.1 4.1 during 1992-93 to 1999-2000.2 per cent to 1. As a result.6 per cent respectively for the year 2011-12.7) 2011-12 (RE) 2.4 9. RE: Revised Estimates #: Includes mining & quarrying.4 (13.3 (100.8 per cent during 2009-10 to 32. respectively. fuel. suggesting that uniform prescription may not work in propping agricultural growth as state level occurances measures up to the overall performance.1) 9.9) (27. as a b. The rate of growth of private final consumption expenditure in real terms has been fairly consistent and did not decline significantly even when the growth rate was relatively lower. indicating that high and perhaps increasing volatility is a real concern. the growth rates of items and like furniture and and furnishing. Monthly Economic Report (March 2012). the composition of private final consumption expenditure in terms of shares underwent changes. 2. primarily household savings in financial assets. the Indian agriculture growth pattern has been highly varying across states. beverages.1 per cent and 7.6 compared to 1. there by making it more challenging.4) (28.2: Sectoral Growth Rates of GDP (2004-05 prices) Sector Agriculture & Allied Industry# Services GDP at factor cost 2007-08 5.Table 1. Economic Survey 2011-12 to 2010-11 was 1.

Financial year 2011-12 started with a headline inflation of 9. with the global economy exhibiting signs of slowing down in the second half of 2010 as well as to domestic factors. Both domestic and global factors determined the inflationary trend. respectively during 2010-11.4 per cent in 2010-11. has started to show signs of moderation towards the end of the year 2011-12.7 Headline year-on-year wholesale price index (WPI) inflation. Inflation 1. proteins (milk.8 inflation The drivers and the measures to contain have been extensively analysed and c.3: Drivers/Causes of Inflation in India Category Products covered Food Inflation Foodgrains.1 per cent with the contribution of public and private sectors at 8.9 per cent. the investment rate for the corporate sector declined from 12. aviation fuel etc.6 per cent in 2009-10 to 30. briefly touched double digits commented upon in recent times. falling from 31. after remaining persistently high over the past two years.1). Within the private sector. crude oil. Reduction in corporate investment could be attributed to global factors.8 per cent. in September 2011 before coming down to 6. eggs. as a proportion to GDP. namely increased cost of borrowing following the upward revision of interest rates in order to control inflation. i. 9 Supply shock 9 Global trends 9 Growing demand 9 Capital stock deficiency 9 Resource constraint Medium Term 9 Demand side driversincreased wages due to MGNREGA 9 Wastages Long Term/ Structural 9 Pricing (MSP) 9 Changing consumption pattern 9 Lack of storage and other infrastructure 9 Infrastructural bottlenecks 9 Stabilising exchange rates to smoothen volatility 9 Need for finding alternative sources of energy Implications 9 Nutritional security 9 Productivity issues 9 Supply chain Management 3 .7 per cent in 2009-10 to 12. However.1 per cent in 2010-11 while that of the household sector increased from 12. The list is illustrative.6 per cent in January 2012 (Chart 1. the inflationary pressure in India during the Table 1.8 and 24. The analysis showed that the shift in the nature and causes of inflation in India is a natural fallout of the structural changes that the economy has undergone. Drivers of Inflation in Recent Years 1.4 per cent to 12. is estimated at 35. Fixed investment as a ratio of GDP peaked in 2007-08 and registered a decline since then.7 per cent. fruits & vegetables. coal 9 Excess demand 9 Production short fall Energy Prices Petroleum products. meat. fish) Immediate/ Short term 9 Spike in global food prices 9 Weak monsoon 9 Crop losses 9 Supply shock Core Inflation Manufacturing.(GCF).

13. • • Reduction of import duties (for rice.54.9 The analysis also showed that the nature of commodities need to change in favour of the ones facing the supply shock.13 per cent. But in view of the prolonged inflationary spells in recent years. onion (for short period of time). Agricultural exports increased from ` 1. wheat.0 per cent to 5. • • Suspension of futures trading in rice.5 per cent and 7. pulses.42.921 crore over the same period last year. the cash reserve ratio (CRR) has been cut by 50 basis points (bps) from 6.1.year was caused due to the interplay of a number of immediate and some underlying long term factors (Table 1. Monetary Measures As part of the monetary policy review stance.117 crore during 2010-11 to `1. duty free white/ refined sugar).095 crore during 2011-12.5 per cent respectively. Increase in agricultural exports has been mainly Box 1.3).milk powders. non-basmati rice.10 Cumulative value of exports for the period April-March 2011-12 was ` 14.65 per kg for below poverty line (BPL) and `3 (Source: Economic Survey 2011-12) 4 . urad. basically because of the kind of shifts it was pointing towards.bulk sale..065 crore as against ` 11. The measures adopted to contain inflation and food inflation are summarised in inflation was different from the earlier instances of prolonged inflation.1: Measures adopted to Contain Inflation and Food Inflation A. 201112 was `23. Extension of the Scheme for distribution of subsidised imported edible oils through state governments/UTs • • Removal of levy obligation in respect of all imported raw sugar and white/refined sugar. skimmed milk powder and other dairy products. • • Permitting export of edible oils in branded consumer packs of up to 5 kg subject to a limit of 10. using the monetary policy weapon was thought to be the appropriate policy response in order to prevent and control the spillover of the supply shock in food prices into a generalised inflationary pressure in the economy.5 per cent and repo rate and reverse repo rate have remained unchanged at 8. edible oils). Fiscal and Administrative Measures per kg for Antyodaya Anna Yopjana (AAY)) and wheat ( a t `4. the Box 1.000 tonnes. onion. the persistent nature of food inflation posed challenges for policy makers as monetary policy cannot have a direct and immediate bearing on food prices.466 crore over the same period last year.73 per cent.15 per kg for BPL and `2 per kg for AAY) since 2002. registering a growth of 27.22 per cent.41. Allocation of wheat and rice under the Open Market Sale Scheme (OMSS). Moreover. relative prices across categories of d. the RBI has taken suitable steps with 13 consecutive increases in policy rates and related measures to moderate demand to levels consistent with the capacity of the economy to maintain its growth without provoking price rise. registering a growth of 24. and tur. wheat.42. • Maintaining the central issue price (CIP) for rice ( a t `5. • B.83. 1. Ban on export of edible oils and pulses (with certain exceptions). Exports of onion calibrated through the mechanism of minimum export prices (MEP).216 crore as against `16. Cumulative value of imports for the period April-March. No change in tariff rate values of edible oils. As per the most recent announcement of the RBI on 24 January 2011. In order to keep inflation under check. Permitting import of certain products (viz. casein and casein products. for distribution to BPL families at BPL issue price and for above poverty line (APL) families. registering a growth of 39. Trade 1.

4 840. can also be related to the longer term structural changes taking place in agriculture.9 mm of rainfall. another 10 million operational holdings might have been added.14 The country as a whole received 899. The share of food & allied product imports in the total imports of the country also increased from 2.5 1012. The southern peninsula received normal rainfall. 2005-06) The structural changes that occurred during the two agricultural censuses (2001-02 & further accentuated the predominance of “small farming” as reflected by an increase of 10 million operational holdings within just five years with no rise in the net cropped area. they must increasingly meet the requirements of these demanding markets. meaningfully.9 840.8 655.9 9. Structural changes in agriculture 1.4). during the year under report. now operate about 41 per cent of the total area indicating that the base of Indian agriculture is small.3 9.4 571.9 9.12 Another feature of this structural shift has farmers.5 1677. Making Small Farmer participate 1. Ministry of Commerce & Industry.4: Trends in Exports and Imports ( ` ’000 crore) Year Total Exports Share of agri allied products (%) 10.3 1374.Table 1. meat and meat preparations. castor oil and tea. In the changed policy environment there is an urgent need to create and facilitate institutions like the Producers Organisations and other such arrangements. which was 1.13 The shift towards consumer-driven markets which is an integral element of market liberalisation and globalisation means that the small farmer is increasingly being asked to compete in markets that demand much more in terms of quality and food safety. CMIE.6 1425. Rainfall situation 1. Central India and North-West India experienced excess rainfall over the LPA by 10. b. Agriculture & Rural Economy a.8 845.0 per cent and 7. Making them participate in the growth process not merely in the production stage but in the post production stage also will be necessary to include them.5 1142.0 in 2009-10. The percentage share of agriculture and allied products in the total exports was 9. c.0 10.3 3.2 10. Various Issues. due to higher exports of basmati rice. which can aid/ensure the transition of small farmers with the working of the market.0 9.0 per cent more than the Long Period Average (LPA) during the South-West monsoon (June-September) 2011 as compared to 2. putting pressure on the average area operated per farmer (holding) which was 1.9 3.7 2. both at home and overseasand pose these changes threats offer to new small opportunities serious B. In fact.23 hectares in 2005-06. Available estimates suggest that small holders about 51 per cent of the value of contribute 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 456.2 agriculture output and contribute significantly to food security. going by the trend.0 per cent less than the LPA in the corresponding period last year.0 per cent respectively. ensuring that the small holders do not get marginalised and excluded from the benefits of the growth process is the biggest challenge today.4 3.0 2. GoI.9 Total Share of food Imports & allied products(%) 660.1 3. April 2012.1 (<2ha). North-East India received 14 per cent 5 been the rise in the area operated by small farmers . unmanufactured tobacco.5 3.11 The developments in the agriculture sector. 1.9 during 2011-12 as compared to 10.19 per cent in 2010-11 to 3.1 per cent in 2011-12 (Table 1.4 1363. Therefore. Small farmers who form 83 per cent of the numbers.7 1683. As small farms tend to diversify into highervalue products. Source: Economic Survey.

56 million tonnes which is a significant achievement mainly due to increase in the production of rice and wheat. The area coverage under sugarcane during the current year has slightly improved to 50.44 lakh ha more than the previous year. from 2004-05 to 2008-09. augmenting irrigation potential is key to sustained growth in agriculture. 2010-11. 24 per cent of the districts received excess rainfall.65 lakh ha last year. 1. and yield of different crops during the period from 1980-81 to 2011-12 (base triennium ending (T.4 Normal: +/-19%.5: Trends in Rainfall and Water Storage Particulars South-West Monsoon* 2009 A. 23 per cent deficient rainfall.5).6 2 31 5 75.15 The total designed storage capacity at full reservoir level (FRL) of 81 major reservoirs in the country monitored by the Central Water Commission (CWC) is 151.92 lakh ha compared to 1267. At the end of monsoon 2011. The area coverage under rice during 2011-12 was around 444.35 lakh ha during 2010-11. Uttar Pradesh. by and large the rainfall situation and availability of water in the major reservoirs was normal. Moreover. However. and 1 per cent received scanty rainfall.81 lakh ha. 3 recorded deficient rainfall during the South-West the monsoon 26 in 2011. the area under coarse cereals and oilseeds has also come down as compared to the previous year. production.Divisions with Normal/ Excess Rainfall Deficient/Scanty/No Rainfall C. production of foodgrains during 2011-12 is estimated at an all time record level of 252. CMIE April 2012 foodgrains during 2011-12 as compared to 2010-11. Deficient: -20 to -59%. Economic Survey. The lower area under foodgrains has been due to a shortfall in the area under jowar in Maharashtra. Rajasthan and Gujarat.17 There has been a decline in overall area under (-)23 13 23 58. . Crop production 1.96 lakh hectares as compared to the previous year and the area under cotton has increased significantly to 121. However. Out of the 33 remaining subdivisions.16 For five consecutive years.78 lakh ha as compared to 112.23 BCM at the end of monsoon 2010 and 102. As per the third Advance Estimates.Table 1.77 billion cubic meters (BCM).) 1981-82=100) indicates a mixed picture (Table 1. Normal monsoon in the subsequent year. Reservoir status (% of FRL$@) 2010 2011 d. Out of the 36 subdivisions. Various Issues. Andhra Pradesh and Rajasthan.759 BCM. Number of Sub. Cumulative rainfall (% variation from normal) B. Scanty: -60% or less.076 BCM. $ : Full Reservoir Level in 81 major reservoirs (accounting for 67% of total reservoir capacity in the country) as at the end of the season @: As on 30 September in the case of SW Monsoon and 31 December in the case of NE Monsoon Source: Indian Meteorological Department.11 million tonnes in 2009-10 due to severe drought conditions in various parts of the country. the total live storage in these reservoirs was 131. There is a need for renewed research efforts to boost production and productivity of food grain crops against the backdrop of plateauing growth 6 less rainfall than the LPA.4 1 33 3 86. An analysis of trends in indices of area.06 lakh ha which was 15. given the vagaries of the monsoon.E. which is the average of the last 10 years. 7 recorded excess rainfall and remaining recorded normal rainfall (Table 1.254. which was more than the live storage of 115.6).78 million tonnes of foodgrains production. Thus. 1. Gujarat and Haryana. The area coverage under foodgrains during 2011-12 stood at 1. Excess: +20% or more. At disaggregated level. foodgrains production recorded an increasing trend. 52 per cent normal rainfall. it declined to 218. No Rain: -100% * : Cumulative position between 1 June and 30 September. bajra in Maharashtra. higher by about 1. helped the country reach a significantly higher level of 244. and in pulses in Maharashtra.

45 2.43 Production 1.3 lakh quintals of 7 . patterns. Council Research.70 1. whereas. Inputs use in Agriculture i.96 4. Agricultural Universities. storage. medium-term and long-term measures that could be undertaken to achieve higher production and productivity in the agriculture sector.02 3.39 2.91 Total Foodgrains (-)0.68 1.6: Compound Growth Rates of Area.02 Yield 1. to ensure that the higher demand for food items is met.12 (-)0.Table 1. The Indian Seed State Programme Central/State Agricultural Governments.18 With the spread of urbanisation and the economy growing in the range of 7-8 per cent.52 2000-01 to 2011-12* Area 0. As the agricultural production basket is still not fully aligned with the emerging demand f.08 0. include measures related to supply response.62 3.2). 277. Total oilseeds include nine oilseeds.19 Some of the short-term. which An now account of for food approximately 70 per cent of the WPI basket for items.91 0.07 Production 2.14 4.59 2. there has been a shift in the demand from cereals to noncereal food like pulses.60 (-)0.82 0.61 1.20 Farmers generally need a genetically diverse portfolio of improved crop varieties that are suited to a range of agro-ecosystems and farming practices and resilient Indian to climate involving of change.73 1.85 Yield 3.39 1.51 Production 3.02 0. Seeds 1.09 1. and Besides. Production. meat and vegetables both in rural and urban areas.05 1.07 (-)0.52 2. cotton seed and coconut. dairy. Aligning agricultural production with the consumption basket 1. During 2010-11. This has led to an increasing pressure on their prices.58 3.86 (-)0.72 2. rate in yield levels of rice and wheat and growing popularity of coarse cereals and pulses as nutri-food.44 1.10 1.40 1. fruits.72 (-)2.43 2.47 1.15 1.01 3.19 3. primary meat food and fish.57 (-)0.04 1.41 0.34 (-)0.46 (-)1.37 2. 1990-2000 and 2000-2012 (Base: TE 1981-82=100) 1980-81 to 1989-90 Area Rice Wheat Coarse Cereals Total Pulses Sugarcane Total Oilseeds 0. The recent food inflation episodes have been attributed to the constraints in increasing the supply of these commodities as compared to their demand.93 1.70 5. and Yield of Principal Crops during 1980-1990.74 1990-91 to 1999-2000 Area 0.57 0.68 1.75 1.34 1. e. 1. Both public and private-sector investment in research and development (R&D) in these crops needs to be encouraged.22 (-)0.20 2. examination consumption expenditure in the country during the period from 1987-88 to 2009-10 clearly reveals that there has been a shift in expenditure towards milk and milk products. it is raises a lot concern especially considering its bearing on inflation. vegetables. Co-operatives and private sector has been addressing the issue of low seed replacement ‘Development rate. edible oils.37 3.83 1.23 Source : Department of Agriculture and Cooperation. *: Growth rates are based on the second advance estimates (AE) 2011-12 released on 03 February 2012.62 1.24 2.63 2. fish. the of scheme for Strengthening Infrastructure Facilities for Production and Distribution of Quality Seeds’ is being implemented since 2005-06 to ensure timely availability of quality seeds at affordable prices to farmers. the share of consumption of cereals in the total food basket has gone down.32 Yield 1. and marketing (Box 1. egg.

linkages to markets and value addition.12 290.Box 1. Under 8 Source: Department of Agriculture and Cooperation (DAC).28 249. Seeds Division. enactment of flexible variety release legislation. Chemical fertilizers 1.21 public sector and expanding its role in developing new crop varieties.8 per cent growth over the previous year. Government should step up creation of modern storage facilities for food grains.35 279. etc.31 250.62 Surplus (+)/ Deficient (-) +13. As a strategy. ii. • Perishables could be taken out of the ambit of the APMC Act. organised trade in agriculture should be encouraged and the FDI in multibrand retail once implemented.21 Chemical fertilizers have played a significant role in the development of the agricultural sector. private sector seed enterprises through an integrated approach involving producer organisations. improving policies and legislation for variety development and release as well as seed supply.60 +30.19 lakh quintals and 17.7.76 330. revitalising the Table 1. improved supply response is critical for ensuring price stability in food items. registering 13. In view of this. Anyone who gets better prices and terms • outside the Agricultural Produce Marketing Committee (APMC) or at its farm gate should be allowed to do so. • • • • • Source: Economic Survey 2011-12 certified/ quality seeds were distributed. A greater number of traders must be allowed as agents in the mandis. The government-regulated mandis sometimes prevent retailers from integrating their enterprises with those of farmers. after assessing the likely domestic situation in terms of production and consumption requirements. . For promoting inter-state trade. Both production and consumption of chemical fertilizers has steadily increased over the years (Table 1. Breeder seed production and foundation seed production reached 1. Mandi governance is an area of concern. strengthening capacity by creating a new generation of skilled practitioners to support enhanced breeding. Only user charges linked to services provided may be levied for subsequent transactions. Some important measures to strengthen the seed sector include.74 207.53 lakh quintals. Considering significant investment gaps in post-harvest infrastructure of agricultural produce. The recent episodes of inflation in vegetables and fruits have exposed flaws in our supply chains. working with farmers to explore the ways in which crops and varieties contribute to successful intensification. Extension programmes and guidance to farmers regarding fertilizer and insecticide usage and alternate cropping pattern based on soil analysis could be undertaken and intensified.2: Supply-side Constraints • Given the compositional shift in food basket of a common household and its impact on consumption demand.7: Requirement & Availability of Seeds in India (lakh quintal) Year 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 Requirement 180. could be effectively leveraged towards this end. GoI. regular imports of agricultural commodities in relatively smaller quantities with an upper ceiling on total quantity could be considered.8).07 +30. The requirement and availability of certified seeds during the last five years are given in the Table 1. supporting the emergence of local.41 Availability 194.60 +23. relatively well in advance. a commodity for which market fee has been paid once must not be subjected to subsequent market fee in other markets including that for transaction in other states. respectively during 2010-11.53 and 7.72 321. The upper ceiling can be decided annually. perishables may have to be exempted from this regulation.36 353.57 +43. Setting up special markets for specific crops in states/ regions/areas producing those crops would facilitate supply of superior commodities to the consumers.

the Nutrient Based Subsidy (NBS) Policy. which is a biggest source of irrigation today.380.46 80.27 2011-12 222.8: Production and consumption of fertiliser Production of Urea.37 87. Directorate of Economics and Statistics.13 249.69 area as a per cent of Gross cropped area has increased from 34 per cent in 1990-91 to 45.32 264. rapid rise in well and pumping depths. and around 80 million ha utilised.64 crore of central loan assistance (CLA)/grant has been released up to 30 November 2011.80 35. is critical in the of increasing productivity and income stabilization at the micro level and ensuring food security at the macro level. 1.80 72. Department of Agriculture and Cooperation (DAC).76 165. suffers from over-exploitation in most of the states. With the objective of providing a variety of subsidized fertilizers to farmers depending upon soil and crop requirements. better management and maintenance only can hold the deteriorating performance. low well productivity. out of which only about 109 million ha have been created. the government has included seven new grades of complex fertilizers under the NBS.58 80.50 35.88 39.2 155. has an overall irrigation potential of 140 million ha. currently. Under the AIBP.12 42.14 irrigation.38 2010-11 218. of water surface schemes into storage (dams).90 65. a fixed subsidy is announced on per kg basis of nutrient annually. projects approved by the Planning Commission are eligible for assistance. augmentation of irrigation potential through public funding and is assisting farmers to create potential on their own farms.3 per cent in 2008-09. improvement in the quality of power and availability of power are a precondition for improving the country. GoI. Substantial irrigation potential has been created through major and medium irrigation schemes. India. Ministry of Chemicals & Fertilizers. deteriorating groundwater quality and salinity ingress in many areas. Under this programme. transmission (distribution Groundwater Per Hectare Consumption of Fertilizers in Nutrient Terms (kg) Nitrogenous (N) Phosphatic (P) Potassic (K) Total (N+P+K) Per hectare consumption 150. a natural resource. The central government initiated the Accelerated Irrigation Benefit Programme (AIBP) from 1996-97 for extending assistance for the completion of incomplete irrigation schemes. Major reforms in the power sector. drying up of a huge number of wells.22 144. DAP and Complex Fertilizers (lakh tonnes) Year Urea Di-ammo-iumphosphate Complex fertilizers 2009-10 211. Excessive dependence on groundwater for irrigation purposes has several implications like steep decline in the groundwater table. Gross irrigated . Free or low pricing of power for irrigation has primarily contributed to this problem. there are wide variations in irrigation coverage across states and across crops. Under this scheme. It may involve engaging water user associations and even by (main canals) at and the retail farmer unbundling the large distribution level).06 33. Farmers pay only 50 per cent of the delivered cost of P and K fertilizers. Irrigation 1.41 90. manufactures/marketers are allowed to fix the maximum retail price (MRP). the rest is borne by the Government of India in the form of subsidy.23 The Government of India has taken up the overall groundwater situation in Source: Department of Fertilizers.74 36.14 281.09 127. An additional subsidy is also given for micronutrients. Flagging efficiency levels of public surface irrigation schemes is causing a lot of concern and perhaps urgent institutional reforms. However. `50. As on 31 March 9 iii.Table 1.22 context Water.86 135.

02 21.36%).9). Animal Husbandry (24. while minor crops production is estimated to rise by 4. 290 projects were covered under the AIBP and 134 completed. and `54. Livestock.77 21.040 crore as on 31 March 2012.70 #: Compound Annual Growth Rate.2 per cent of the target. ^: Percentage change over the previous year. from major/medium/minor irrigation projects under the AIBP . However.10). an irrigation potential of 566.68. Overall. during 2010-11. 17 per cent and 11 per cent of the total credit flow during 2011-12 (Table 1.11 per cent. Agricultural Production i.616 crore. During 2010-11.24 which Sixty-five per cent of agriculture in India is require perhaps a completely different undertaken in dry land and resource poor regions.24 thousand ha is reported to have been created by states.85 25.25 As against the target of ` 4. followed by Farm Mechanisation (25.2011.4 per cent in 2012-13. orientation and approach.0 per cent.185 crore Table 1.01 per cent.2 per cent over the previous year. the country’s foodgrain production during 2011-12 was estimated at 252.27 According to the 3rd Advance Estimates.56 million tonnes as compared to 244. * Includes ` 226 crore by other agencies **: includes ` 114 crore by other agencies @: provisional Source: NABARD 10 .48 20. agriculture sector is expected to achieve a modest growth of 2. As the emphasis has been largely on research and solutions for irrigated agriculture.09. iv Rain-fed agriculture 1. the banking system disbursed ` 5.01 2010-11 ^ 22.49%) in GLC flow over 2009-10 (Table 1. forestry and fishing are expected to do well. priority needs to be given for building up greater understanding and creating a framework for development of rainfed agriculture and farmers depending on such land.52 per cent and 12. respectively. assured remuneration from such production is vital for development of agriculture. 1.26 During the period 2007-11.13 20.95 per cent. This is especially critical in the context of food security. Sub sector-wise. the GLC flow for agriculture and allied activities registered a Compound Annual Growth Rate (CAGR) of 20.75. g. These regions are home to majority of small and resource poor farmers. Foodgrains & Non-foodgrains 1. output of major crops is v. achieving 107. registering an increase of 3.78 million tonnes (final estimate) during 2010-11. `86.239 crore.57 8.46 6.48 22. The growth rate in short term credit flow and term loans were 24. While the higher irrigation potential would help to augment production and productivity.40 22.000 crore credit flow to agriculture for 2011-12. sharing 72 per cent. High-tech agriculture witnessed the highest annual growth of 62. Credit 1.9: Agency-wise Ground level Credit Flow (` crore) Agency 2007-08 2008-09 2009-10 2010-11 2011-12 @ Growth Rate (%) @ 2007-11 # Co-op RRBs CBs Total 48258 25312 181088 254658 45966 26765 228951 301908 * 63497 35217 285800 384514 78007 44293 345877 468291 ** 86185 54239 368616 509040 18. Co-operative banks and Regional Rural Bank (RRB) disbursed `3. Commercial Bank (CB). respectively for the five-year period (2006-07 to 2010-11).79 2011-12 ^ 10.

the maximum increase being for cotton at 40. Farm Mech iv.7 32.09 10. F: Forecast. II. April 2012.29 Coffee is cultivated in an area of around 4.0 342.04 per cent followed by oilseeds (21.97 lakh tonnes of Arabica and 2. 0.9 13.6 per cent in 2012-13.5%) and wheat (4.0 Sugarcane 292.6 35.11: Production of Major Crops (Million tonnes) Year/Crops 2009-10 2010-11 2011-12 218..6 (-)3.52 12.6 99.1 80. ii.8 7.3 Jute & Mesta* 11.54 21. The 11 E: 3rd Advance Estimates.13 lakh tonnes in 2009-10. Economic Survey 2011-12 . mainly because of a fall in output of nonfood crops.6 percent in 2012-13.07 (-)16. I.0 17.02 5. P & H v. i.1 42.3 17.29%) (Table 1. Government of India.6 6.6 5. Source: CMIE.78 lakh tonnes as against 2.49 4.1 7.85%). Hi-tech agriculture viii. Ministry of Agriculture. Minor Irrigation Land Development 2006-07 2007-08 2008-09 2009-10 2010-11 Growth rate (%) 2006-11 ^ 138455 90945 8566 2285 10113 5266 8045 1424 21498 33748 229400 181393 73265 2840 2553 8303 5910 9034 1248 33325 10052 254658 210461 91447 3180 2887 8334 6045 10398 1281 41694 17628 301908 276656 107858 5197 3669 10211 6407 10260 1854 50797 19463 384514 335550 132741 4363 3615 12800 6610 12773 1931 82774 7875 468291 24.17 24. *: Million bales of 180 kgs each.1 2. pulses (18%).50 11.7 (-)4. coarse cereals (19. Agricultural Statistical Division.4 Soyabeans 10. During the year 2011-12. Table 1.91 lakh tonnes achieved in 2009-10.3 42.79 iii.Table 1.15 20.8 96.9 1. Plantation crops 1. The estimated import of tea into India during 2010-11 was valued at `186.6 Cotton# 24.18 13. *: Percentage change over the previous year.2 4. Further.05 lakh tonnes of Robusta.3 12.7 11.2 has been estimated at 9. sugarcane (16. the export of tea from India during 2010-11 was 1.62 crore compared to the previous year.28 Tea production in the country during 2010-11 Foodgrain of which Rice Wheat Coarse Cereals Pulses Non-food crops 252.8 100. which was lower by `27.0 345.8 91. estimated coffee production for the year 2011-12 is 3.7 24.2 342.0 Major oilseeds of which Groundnuts 5.6 32.5 14.02 lakh tonnes.36 3.47 25.6 8.8 (-)3. projected to decline marginally by 0.29 23. bullock and bullock cartsand bio-gas ^: Compound Annual Growth Rate.11).57 36.66 7.58%).2 32.0 12.e.7 18.59 (-)20.0 86.0 10.9 244.10: Sub-sector-wise Ground Level Credit Flow for Agriculture & Allied Activities (` crore) Sl Sector/Sub-Sector No.15 62.19 2010-11* 21. 1. Crop Loan (ST-Production Credit) Term Loans (MT & LT Investment Credit) i. Fisheries vii.95 (-)59.1 2011-12 (% change) 3.2 33.0 4.forestry/waste land development.8 8.9 43.66 lakh tonnes as against 9.82 crore.2 lakh ha mainly confined to Southern India.8 33.11 (-)7.0 Rapeseed & Mustard 6.8 (-)6. Production of non-food crops is projected to fall by 1.5 11.5 31. #: Million bales of 170 kgs each.05 (-) 1.1 89.7 (-)17.3 ii.7 8. owing to lower output of cotton and sugarcane.5 E 2012-13F 251. Animal Husbandry vi.4 10. RIDF. production of all the crops is estimated to be higher. Others$ Total (I + II) Source: NABARD $ : Others include storage/market yards.4 87.

18 1.19 1.33 Agriculture and allied activities contributed for 14. under implementation in 372 districts of the country. h. a total area of 16.60 0. Schemes for development Mission.851 tonnes against an import of 1. This sector is emerging as an important growth leverage of the Indian economy.73 9.62 2. 1. addressing nutritional security.43 crore had been incurred upto 2009-10.282 tonnes (Table 1.43 12. fruits and vegetables form the single largest sub-sector constituting horticultural Horticulture about 92.90 2.58 11. respectively during 2009-10 (Table 1.31 Development as the of horticulture for and has been in accounting for 12.1 per cent over the previous year. respectively during 2008-09 to 20.95 3.22 Production 9.61 9. The production of Rubber (natural & synthetic) was 9.78 $ Exports 0. GoI.90 2.73 9.49 2.02 lakh tonnes.867 kg/ha. the estimated export of natural rubber was 29.3 per cent of the total horticultural production in the country.71. its share in GDP has been rising gradually.97 1. an increase of 3.25 0.38 lakh tonnes during 2009-10.13 1.86 8.08 $ Rubber Consumption 10. India continues to be the second largest consumer of NR with 8.70 NA 2.99 0. Among the various horticulture crops.2 per cent in world production 2011-12 is projected at 9.12). while that of the crop sector has Table 1. Horticulture Crops 1.125.8 per cent. Despite not having regions geographically best suited to growing natural rubber. Area and production under horticulture crops increased from 20.91 9. diversification providing recognised employment avenue agriculture.1. As a component of agricultural sector.6 per cent over 2010-11.7 million ha and 214. Tea Board and Rubber Board 12 . Consumption and Exports of Major Plantation Crops (lakh tonnes) Year Tea Production Consumption Exports 2006-07 2007-08 2008-09 2009-10 2010-11* 9. During 2010-11 (April-February). Livestock and Poultry 1.71 7.34 Livestock sector plays a critical role in the welfare of India’s rural population. promote holistic development of the rubber (NR) with a share of 8.57 lakh ha has been brought under horticulture crops and an expenditure of `4.94 0.38 9. Under the scheme.0 per cent to GDP and employs 8.94 0.31 9.85 0.62 2.57 0.29 NA: Not Available *: Estimated $: April 2010-February 2011 Source: Ministry of Commerce and Industry.7 million tonnes.02 7.8 per cent share of world consumption in 2010.77 lakh tonnes.32 aims to The National Horticulture Mission (NHM).78 Coffee Production Consumption Exports 2. Agriculture and Allied Sector 1.12: Production.47 0.0 per cent of the labour force.91 11.08 lakh tonnes during 2010-11 (April-February) as against 9.5 per cent and fishing at 0. enhance opportunities export earnings. i. The production of NR in Schemes of the National Horticulture Board and Integrated Development of Coconut.9 million ha and 223.6 per cent of GDP in 2010-11 with Agriculture iii. Coffee Board.85 1.90 0. It contributes 9.87 9. National include Bamboo National Mission. Consumption of NR in 2011-12 is projected at 9.1 million tonnes. followed by forestry and logging at 1. an increase of 4.3 per cent.64 12. India continued to record the highest productivity in the world with an average yield of 1.94 2.30 India is the fourth largest producer of natural in 2010.52 9.88 2.66 7.13). horticulture sector through area based and regionally differentiated strategies.

Agricultural Marketing Information Network (AGMARKNET) provides internet connectivity to agricultural markets for establishing information network of prices and other market related information.3 Area Total Vegetables 7. the livestock sector over 14 million people in 2010-11.4 71. Distribution of livestock wealth is more egalitarian.1 0. employment. forestry.6 65. Fish production increased from 3.7 20. In recent years.8 7. The export of processed foods including processed fruits and juices increased from `3.1 0.0 44.7 per cent of in reforms.1 115.176 crore during 2008-09 to `3.7 223.9 Fruits 55.38 Seventeen their (APMC) States/Union Agricultural Acts for Territories agricultural have market amended Committee Produce Marketing ii. and export earnings. apart from being a major foreign exchange earner.1 per cent of GDP and 28. and fishing the year 2010-11 (QE). Hence.2 Horticulture 18.2 0. manure. Agro processing helps in better utilization and value addition of agricultural produce.4 59. The Vision Document 2015 by Ministry of Food Processing Industries has set a challenging target of trebling the size of processed food sector by 2015 through appropriate enabling policies.7 Horticulture 181.9 7. respectively.0 per cent value of output from agriculture and allied activities. the livestock and poultry population in the country were 529. contributed to 5.7 Flower 0.8 million. The per capita availability of eggs has been around 51 per annum during 2010-11. As per the 18th Livestock Census 2007.0 129.36 The fisheries sector contributed 0.Table 1.4 20.3 5. aquaculture. vegetables and other perishables in States that have amended their APMC Acts.0 per cent of GDP at factor cost from agriculture. from the equity and livelihood perspective. various issues. Fishing.5 Production Total Vegetables 110. livestock output has grown at a rate of about 5.2 7.8 million tonnes in 1990-91 to 8.6 5. Agro and Food Processing Sector 1.13: Area and Production of Major Horticulture Crops (Area in million ha and production in million tonnes) Year Fruits 2005-06 2006-07 2007-08 2008-09 2009-10* 5. higher than the growth in agricultural sector.2 0. Agricultural Marketing and Commodity Futures 1.1 *: 3rd Advance Estimates Source: Agricultural Statistics at a glance.2 20.9 Flowers 0.9 66. The per capita availability of milk increased from 258 grams per day to 263 grams per day due to increase in milk production in the country by 3.2 214.35 During 2010-11.29 million tonnes in 2010-11.7 38.1 133. it is considered as an important component of poverty alleviation programmes. NHB been on the decline.255 crore during 2009-10.68 per cent during 2010-11 over 2009-10. j.5 47.5 7.1 6. 1.7 million and 648.7 19.6 68. income.3 129. compared to land. Initiatives have been undertaken by GoI for setting up terminal market complexes for fruits. and allied activities are reported to have provided livelihood to . This enterprise provides a flow of essential food products.8 191.8 211. 13 Agricultural commodities valued at total GDP at factor cost and 5.37 Agro and Food Processing sector is regarded as the promising sector of the Indian economy in view of its large potential for growth and its socio economic impact specifically on employment and income generation. Fisheries 1.0 per cent a year.8 6. i. draught power.

08 crore for the same during 2008-09. The value of total trade in commodity futures market increased from `77. k. enabling impact on the private sector investment.40 The share of Gross Capital Formation (GCF) of agriculture & allied sector in total GCF has hovered between 6 to 8 per cent. in the ratio of GCF in agriculture as a percentage to agri-GDP.41 The investment rate in agriculture. implying that the nonagriculture sectors are receiving higher investment as compared to agriculture & allied sector over the plan periods resulting in growth disparities (Chart 1. whereas.39 Agriculture commodity futures market includes pressure on agriculture for their sustenance. But considering that public investment has an enabling effect on private investment. Composition of investment 1.`8.86 per cent during the period. Though this is in line with the overall falling share of agriculture in the overall GDP and also conforms to the development process observed elsewhere in the developing world.68 per cent in 2009-10 to 12.42 While public investment in agriculture is critical and has a vital. as reflected 21 commodity exchanges in the country. 14 .65 crore were certified under ‘Agmark’ for domestic trade and exports. keeping in view the high population l.754 crore in 2009-10 to `119.6 per cent which increased to 20. 1.18 per cent in 2010-11.3 per cent in 2010-11 (Chart 1. Capital formation in agriculture ( `1. the stagnant share of public investment is a concern.64.42.254 crore in 2010-11) now primarily rests on the private investment. This means that it is the private sector investment which is mainly holding the agriculture growth together.614.25 crore and `241.942 crore in 2010-11 recording a growth of 53. especially when we keep in mind that the private sector response would be better to a more reformed incentive structure. respectively during 2009-10 as compared to `7. Implications for sustaining this position are critical. it was around 18 per cent during the early 1980s. Capital Formation 1.2).865. there is a need for substantial increase in investment in agriculture. In percentage terms in 1997-98 (beginning of ninth plan) it was 8. however has substantially improved in the last decade which is a positive sign. 1.48. The value of agricultural commodities as a proportion to total trade in commodity futures market decreased from 15.3). it forms not more than about 20 per cent of the total investment in agriculture.58 crore and `306.

34 1.14).09 1.843. CBs issued 53.16 10.58%).41 1.66 crore.88 crore accounts of the farmer.77 1.282.14: Agency-wise. `3.240.m.07 million KCC were issued by banks with sanctioned credit limit of ` 54.58 5. NABARD implemented the Scheme as the nodal agency for co-operative banks and RRBs.96 1.. During 2011-12.099. especially small and marginal farmers.31 5.12 53.269 crore.33 covering 1. marginal were the farmers.59 lakh farmer borrowers of co-operative banks and RRBs are estimated to have benefited under the Scheme. respectively.01 10. the cumulative disbursements by NABARD was `29.47 8.07 113.83 5.51 8. About 192.91 Cumulative# 43. 10. 43.91 million Kisan credit cards issued as at the end December 2011.81 2.19 4.81 4. Year-wise Kisan Credit Cards Issued (As on 31 March 2012) (million) Year Co-operative Regional Commercial Banks Rural Banks Banks 2.66 million cards (38. Of the cumulative 113. followed by Co-operative Bank.44 the The Scheme of Agricultural Debt Waiver and Union Budget 2008-09 to address the Debt Relief (ADWDR) for farmers was announced in indebtedness of farmers and difficulties of the farming community.33%) and by RRBs 17.61 5. additional subvention of 3 per cent was 15 *: Data for commercial banks available up to 31 December 2011 #: Since inception of the Scheme.42 1.99 17.77 1.59 9.5 small per and cent.06 million cards (46. State Co-opetative Agriculture and Rural Development Bank (SCARDB) and RRBs stood at `18. i. Interest Subvention Scheme 1.29 2.09%) (Table 1.30 crore.06 Total beneficiaries. Kisan Credit Card Scheme 1. of which 83.12 crore received under the Agriculture Debt Waiver and Debt Relief Scheme 2008.66 o. n.973.19 million cards (15.75 2. The share of State Co-operative Bank (SCB). Agricultural Debt Waiver and Debt Relief Scheme 1.95 1.45 For encouraging timely and prompt repayment of crop loans. major constituting Table 1. Out of ` 29.e.43 Kisan Credit Card (KCC) scheme introduced in 1998-99 has facilitated the flow of credit to farmers.37 crore and ` 6. 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12* 8. August 1998 .

79 per cent. p.46 With the aim of further improving crop insurance schemes. relaxation of export controls on several agricultural products since 1991 have helped agricultural exports. moong. Claims to the tune of about ` 991 crore have been paid against the premium of about `2.33 lakh farmers over an area of about 278 lakh ha with sum insured of about `31. Support Prices.41 and 13. insuring a sum amounting to ` 694.868 crore. a Market Intervention Scheme (MIS) is implemented on the request of a State /UT Government which is ready to bear 50 per cent loss (25% in case of North-Eastern States).announed to those farmers who would repay crop loans promptly within one year of disbursement. Procurement and Stock of Foodgrains 1.953 crore have been covered under the scheme. 14.06 crore. Some of the major improvements made in the MNAIS are actuarial premium with subsidy in premium at different rates. From kharif 2007-08 to kharif 2010-11. Aggregate interest subvention of `1. The scheme has been notified by 17 states in a total of 50 districts for rabi 2011-12 season. respectively during 16 .47 The Weather Based Crop Insurance Scheme q.58 lakh farmers over an area of about 3. The scheme is intended to provide insurance protection to farmers against adverse weather incidence. The WBCIS is based on actuarial rates of premium but to make the scheme attractive. export bans on wheat and rice. indemnity for prevented/sowing/planting risk and for post-harvest losses due to cyclone.0. there are still occasional interventions by the government (for example. was provided by GoI.70 crore. one of the main government interventions in the agricultural markets currently is its policy of Minimum Support For Prices (MSP) for of agricultural commodities.200 crore.688. 1.000 crore. incurred on its implementation.23 lakh ha have been covered.224 farmers. procurement horticultural commodities which are perishable in nature and not covered under the Price Support Scheme.18 lakh ha insuring a sum amounting to `14. high or low temperature. During rabi 2010-11. all claims liability to be on the insurer. 4. The Interest subvention for 2011-12 has been estimated at `3. 10. urad and cotton increased by 8. 1.49 MSP for common paddy. unit area of insurance reduced to village panchayat level for major crops. and allowing private sector insurers with adequate infrastructure. However. respectively. or limits on the stocking of grains by private trade that dissuade the private sector players from investing in the agrisystem). about 3. (WBCIS) is also being implemented as a central-sector scheme from kharif 2007 season.67.89 lakh farmers have been covered over an area of 7. arhar. more proficient basis for calculation of threshold yield. such as deficit and excess rainfall.62 crore and `2.96 crore have been provided to 46. and humidity that are deemed to adversely impact crop production. Agricultural Insurance 1.097. 6. premium actually charged from farmers has been restricted to be on par with the NAIS. Detailed fund requirements as estimated by the implementing agency for these schemes for the year 2012-13 are to the tune of ` 2.94 crore in 2009-10 and 2010-11. Only upfront premium subsidy is shared by the central and state governments on 50:50 basis and claims are the liability of the insurance companies. wheat. The claims amounting to ` 15. on account payment up to 25 per cent advance of likely claims as immediate relief.48 Though with economic liberalization and gradual integration with the world economy. 195. if any.73. with a view to protect the growers of these commodities from making distress sale in the event of bumper crop during the peak harvesting periods when the prices tend to fall below the economic cost of production. the Modified National Agricultural Insurance Scheme (MNAIS) is under implementation on pilot basis in 50 districts in the country from rabi 2010-11 season.

its impact on farmers in terms of better prices for their produce and a reduction in the high differences between farm harvest prices and consumer prices is not yet visible.25 million tonnes was higher by 17. with modifications.) for imports and exports. infrastructure. quality certification. s. Although many states have adopted the new Model Act. The stock of foodgrains (rice and wheat) held by the Food Corporation of India (FCI) as on 01 February. 2012 at 55. 2012 (kharif marketing season for rice and rabi marketing season for wheat) at 26. This brings out the need to give focused attention to post harvest issues. markets.51 In this endeavour. Operating costs for Indian Cold Storage Units are over $60 per cubic metre per year compared to less than $30 in the West.2 per cent over the level of 47. In the context of food grains policy. There has been no change in the MSP of cotton. are put in place.3 million tonnes. warehouse receipts. futures markets. and An improvement to in marketing sector conditions encouragement private participation can be achieved by reforming the APMC Acts. release and distribution is looked at.96 per cent lower than that at 53. concern has been raised about simultaneous occurrence of high food inflation and large food grains stocks in our granaries. It has been argued that. Maheswar.72 million tonnes during April-January 2011-12 was 9. besides improving storage facilities.78 per cent as compared to the corresponding date last year.50 The agricultural growth strategy for a long time focused mainly on production phase.52 Around 30 per cent of fruits and vegetables grown in India (40 million tonnes) get wasted annually due to gaps in cold chain. and in infrastructure (such as cold storage facilities. unavailability of cold storages in close proximity to farms. poor transportation infrastructure etc. in creating a better food grains policy. Appropriate changes in the APMC Acts can boost private sector investment in developing regularised 17 .a few NABARD in-house studies have pointed out that unless facilitating arrangements like pledge financing facilities. The introduction of the Model Act in 2003 was directed towards allowing private market yards. This is particularly relevant for the high value segment that is currently hostage to high postharvest losses and weak farm-firm linkages.63 per cent and increase of 25. Storage Infrastructure 1. etc.C) . etc. Energy Expenses make up about 28 per cent of the total expenses for Indian cold storages compared to 10 per cent in the West (Source: “PostHarvest Losses due to Gaps in Cold Chain in India – A Solution”. Policy focus on post production stage towards a broad based food grains policy 1. 1. represents a decline of (-) 21. respectively. direct buying and selling and also to promote and regulate contract farming in high value agriculture. Efforts at creating storage infrastructure should also keep in its radar that the benefits of this infrastructure accrues to the small and marginal farmers. procurement. The procurement of rice and wheat as on March 1. The off-take of foodgrains (rice and wheat) under Targeted Public Distribution System (TPDS) and other schemes at 47.8 million tonnes and 28.17 million tonnes as on 01 February.0 million tonnes during 2010-11. there is a need to redesign the mechanics of procurement and release of food grains to the market to ensure that the impact on prices is substantial in the desired direction. 2012. it is imperative that the entire system of food grains production. insufficient cold storage capacity. India wastes more fruits and vegetables than it consumes. r. logistics and warehouse receipt systems. the benefits of the storage infrastructure may not accrue to small and marginal farmers.2011-12 over the year 2010-11.

have a critical bearing on the policies and performance chapters.75.000 crore in 2012-13.t. but also by way of its close link to the objective of inclusive growth. Recognising that farmers need timely access to affordable credit.0 per cent interest and additional subvention of 3. The structural concerns and other issues brought out above. Union Budget 2012-13 provided a boost to agriculture by enhancing the allocations to agricultural sector and to some key national projects for expansion of agricultural facilities. the farm credit target has been raised from `4. Union Budget 2012-13 and Agriculture 1.54 The significance of agriculture sector in India is not merely restricted to its contribution to GDP. of NABARD. its ability to impact poverty and its role in addressing the macro concern of inflation.000 crore in 2011-12 t o `5. Continuation of interest subvention scheme for providing crop loans to farmers at 7.75.0 per cent for prompt repayment and making Kisan Credit Card a smart card which could be used at ATMs are some of the positive announcements. outlined in the later 18 .53 Given the crucial role of agriculture in the economy. 1.

State Co-operative Banks (i) Support for Seasonal Agricultural Operations 2. Production Credit A. registering a growth of 36.1). Scheduled Primary Urban Co-operative Banks (PUCB) and Agriculture Development Finance Companies (ADFC) to supplement their financial resources for enhancing credit flow to agriculture and rural sectors.40) 17212 (87.339. allied activities and rural development to Government of India. (iv) financing for rural infrastructure projects by way of the Rural Infrastructure Development Fund (RIDF) and a new line of credit called the NABARD Infrastructure Development Assistance (NIDA). International organisations and other clients provided by NABCONS. (ii) co-financing viable projects with commercial Central banks. usage of farm inputs and labour by way of a consolidated limit to SCBs on behalf of the DCCBs in its jurisdiction. Table 2. Short-Term Refinance 2.II Business Operations The business operations of NABARD comprise (i) providing refinance support to State Co-operative Banks (SCB).13 per cent over 2010-11 (Chart 2.4 NABARD refinances SAO activities including preparation of land for sowing. Banks/ Financial Institutions. Commercial Banks (CB). Regional Rural Banks (RRB). 2. The quantum Figures in the parentheses refer to percentage share 19 .70) 24715 (96. NGOs.3 NABARD refinances short-term loans given by Banks and RRBs for production.31) 34196 (99. Bank SCB & Non-Banking and Primary Finance Companies (NBFC).2 The total financial support extended by NABARD during 2011-12 stood at `82.48) 48981 (99.94) a. (iii) direct lending to Co-operative (CCB) Agricultural Credit Societies (PACS) by way of a shortterm multi-purpose credit product. marketing and procurement activities.1: Short term refinance (production credit) for the last five years (` crore) Year 2007-08 2008-09 2009-10 2010-11 2011-12 Credit Limits sanctioned 18291 19627 25661 34375 49013 Maximum outstanding 16352 (89. (v) refinancing banks against loans extended by them to private entities and agencies owned /assisted by the Government for creation of warehousing infrastructure and (vi) professional consultancy service in agriculture.1. Increase in NABARD’s Seasonal refinance Agricultural assistance under Short-Term to Operations ((ST-SAO) Co-operative Co-operative Banks and RRBs indicating credit limits sanctioned and maximum outstanding for the last five years can be seen from Table 2. State Governments. RRBs. Corporates.48 crore. Co-operative Institutions. This chapter presents detail of the business operations and achievements of the Bank during the year.

Uttarakhand. Sikkim Eastern Region : Bihar. In addition.of refinance assistance to Co-operative Banks was linked to their net Non Performing Assets (NPAs) and their compliance with Sec. it has been decided to launch a direct separate credit window facility for good working Central Co-operative Banks under Section 21 (1) (i) read with Section 21 (2) and Section 33 of NABARD Act 1981. SCBs in southern region (Andhra Pradesh.106.57 crore for National Pulse Development Programme (NPDP) and `1. ` 285.47 crore was sanctioned to Public Sector Banks for financing PACS to provide crop loan to farmers under the scheme. SCBs reached a maximum outstanding of `33. Jharkhand. Mizoram. Uttarakhand and Uttar Pradesh) accounted for 24. subject to the Banks furnishing a declaration in writing setting out the purposes for which they have made loans and advances and such other reasons as may be required by NABARD. Puducherry and Tamil Nadu). With a view to increasing the credit flow sanctioned to 23 SCBs aggregating `33.70 crore for the Oilseeds Production Programme (OPP).2. it was decided to provide additional refinance of 10 per cent to all the regions thus providing refinance of 55 per cent and 60 per cent of the crop loan disbursements to general areas and the Eastern region (Bihar. for the year 2011-12. ST-SAO credit limits were crop loans by Co-operative Banks. A credit limit of `79. 2. Meghalaya. Punjab and Rajasthan) accounted for 32 per cent share.67 crore as compared to `23. Jammu and Kashmir.171. western region (Gujarat and Maharashtra) and central regions (Madhya Pradesh. Jharkhand. NABARD will also sanction refinance to Regional Rural Banks and Public Sector Banks for financing PACS under Section 21 (1) and Section 21 (4) of NABARD Act 1981 against promissory notes.5 In order to enhance the ground level credit for in the NE Region. 2.6 With a view to augmenting ST-SAO Refinance to farmers through the co-operative credit structure. 1949 (AACS).2: Sanction of ST(SAO) Credit Limits to SCB for the year 2011-12 Region/States NE/Hilly Region/ A & NIslands Eastern Region Rest of India Net NPAs (%) Upto 15 Above 15 Upto 10 Above 10 Upto 10 Above 10 Eligible quantum of refinance (%) 70 65 50 45 45 40 Himachal Pradesh. Table 2. DCCBs the This refinance was available to SCBs which were inspection complying report with of criterion: NABARD working in other than NER & Hilly States on behalf of (i) Section 11(1) compliant (ii) Rated as A or B as per latest (iii) Continuously in profit for the last 3 years & (iv) CD Ratio of 70 per cent and above (as on 31 March 2011). With GoI’s new initiative named “Bringing Green Revolution to Eastern India (BGREI) comprising the States in the Eastern Region and 28 districts of Eastern Uttar Pradesh. Sikkim.34 crore to 21 SCBs during 2010-11. it was decided to extend the facility of additional refinance of 5 per cent to SCBs in this region during 2011-12. Andaman and Nicobar Islands. . West Bengal. The credit limits included `3. This was higher by 15 per cent from the maximum level of 55 per cent during 2010-11. Chhattisgarh and 28 districts of (Eastern Uttar Pradesh) respectively. Kerala. the quantum of refinance provided to SCBs was enhanced to maximum 70 per cent of their crop loan disbursements with relaxation in eligibility criterion. West Bengal. The region-wise refinance eligibility of SCBs during 2011-12 is provided in Table 2.8 While SCBs in northern region (Haryana.759. Odisha. Assam. 17 20 NE : Arunachal Pradesh. Odisha and 28 Districts of Eastern Uttar Pradesh. 2. Himachal Pradesh. Manipur. Nagaland and Tripura Hilly Region : Jammu and Kashmir. Himachal Pradesh and Uttarakhand. Karnataka. 11(1) of B R Act.995.995.7 During 2011-12.47 crore for the Development of Tribal Population (DTP).67 crore during 2011-12 with 100 per cent achievement level. 2. Chhattisgarh.

14.`7.0 per cent w.69 crore) for production. Meghalaya. Chhattisgarh.9 This includes short-term refinance for (MACS) and Producer Groups. pisciculture. Refinance assistance for weavers is also routed through commercial banks to co-operative societies for production and marketing of handloom products made by individual weavers. apex and regional weavers societies.32 crore. for different purposes continued. The refinance assistance is linked to their net NPA.f. However. The SCBs with net NPA not exceeding 10 per cent.f. However. marketing of crops. many states having major concentration of handloom activities (NE states. The Interest Rate on refinance to client institutions for the year 2011-12 for Weaver Sector was revised from 8. refinance is provided to RRBs and Commercial banks to meet the working capital requirement of Mutually Aided Co-operative Societies (ii) Support for Short Term (Others) 2. ST (Weavers) credit limits agriculture purposes. Relaxations in NPA norms as extended to Eastern and NER in the case of ST-SAO continued to be made applicable for weavers sector . Tamil Nadu.58 crore in the year 2011-12. Short term credit was also available to SCBs and scheduled commercial banks for financing working capital requirements of State Handloom Development Corporations for production/procurement and marketing of handloom products.14 crore in 2010-11. In addition. Reform and Restructuring Package for the handloom sector and inclusion of the support for the ‘institutional credit’ under the ‘Integrated Handloom 21 (iii) Support to weavers 2. handloom weaver groups and master weavers.54 crore which includes previous year outstanding as against ` 198.and 16 per cent shares. working capital requirements of industrial co-operative societies (other than weavers)/ labour contract and forest labour co-operative societies (including collection of minor forest produce) and rural artisans (including weaver members of PACS/LAMPS/ FSS)/ procurement and distribution of agricultural inputs and STLabour Contract Co-operatives engaged in civil work in rural areas.00 crore in the year 2010-11 to ` 18.01 crore were sanctioned to three SCBs (Andhra Pradesh.e.75 per cent w.7. Consolidated limits were sanctioned to SCBs on behalf of eligible DCCBs. the aggregate limits sanctioned to Assam. Relaxations in NPA norms extended to North Eastern regions in the case of ST-SAO was made applicable for ST-Others also. Nagaland and Sikkim SCBs more than doubled from ` 7. 29. as on 31 March 2010. The share of refinance availed of by the co-operative banks in the NER continued to be low despite relaxations. marketing activities as against `215. Due to weakness in both credit and noncredit co-operative credit system. with relaxations for eastern and north eastern regions.75 crore during 2010-11. The assessment norms hitherto followed.2011 and further revised to 10.f. Eastern region (Bihar.`122 crore and Puducherry . keeping in view the hardening of the interest rates. were considered eligible for refinance.5 per cent to 9. 2. Scheduled Commercial Banks having Net NPA not exceeding 3 per cent of net loans and advances outstanding as on 31 March 2011 and in profit in 2009-10/2010-11 and without accumulated losses. The maximum outstanding during 2011-12 was `204.e. were considered eligible for refinance. allied activities.2011). Odisha and West Bengal) accounted for 11 per cent. also. A consolidated ST (Others) limit of `145.11.2011 (for CBs w. the situation is likely to improve upon the implementation of the ‘Revival. respectively. The limits were fully utilised. of the aggregate credit limits sanctioned. 28.11.11 During 2011-12.00 crore was sanctioned to Haryana and Tamil Nadu SCBs and the extent of utilisation was 85 per cent.e. aggregating `190. procurement.10 Refinance assistance is made available to SCBs on behalf of eligible DCCBs to meet the working capital requirements of primary.`60. UP and Karnataka) have not been able to avail of refinance facilities from NABARD. Odisha. West Bengal. Kerala.

925.15 During 2011-12. Uttar Pradesh received the largest share of credit limit sanctioned of `2. Madhya Pradesh (266). followed by Andhra Pradesh (`2. village/cottage/ tiny sector industries. and in other states (520).236.799.94 crore. Nagaland and Tripura Eligible quantum of refinance (%) 55 50 35 30 30 25 Meghalaya. Regional Rural Banks 2. it was decided to provide additional refinance of 10 per cent to all the regions thus providing refinance of 40 per cent and 45 per cent of the crop loan disbursements to general areas and the eastern region of the country.062 HWGs have been credit linked.017 crore). Himachal Pradesh and NE Region. Uttarakhand.69 crore sanctioned to 80 RRBs in 2010-11.14 crore under ST (SAO) for RRBs. 4. Bihar (82) Jharkhand (500). Andaman Uttarakhand.175 crore) and Kerala ( `1. This was higher by 15 per cent from the maximum level of 40 per cent during 2010-11. Odisha and 28 Districts of Eastern Uttar Pradesh . Additional refinance assistance of 5 per cent is provided to RRBs functioning in the Eastern States and the 28 districts of Eastern Uttar Pradesh. Upto 10 Above 10 Upto 5 Above 5 Upto 5 Above 5 Assam. 2. financing persons belonging to the weaker sections engaged in trade/business/service activities including distribution of inputs for agriculture and allied activities. covered under the BGREI scheme of the Government of India. Jharkhand. Uttar Pradesh (272). RRBs working in other than NER & Hilly states subject to conditions that the Net NPA would be less than 5 per cent and CD Ratio of 70 per cent and above as on 31 March 2011. approved purposes like production and marketing activities of artisans (including handloom weavers). for the year 2011-12. Andhra Pradesh (1.084. Chhattisgarh.258). So far. Karnataka (` 1. Himachal Pradesh. Mizoram. West Bengal (88). 2..Development Scheme (IHDS)’ of the Ministry of Textiles (MoT) of the GoI.3. The quantum of refinance to RRB is linked to their net NPAs. RRBs for ST-OSAO to the extent of 60 per cent of their Realistic Lending Programme (RLP) for eligible purposes like marketing of crops. Odisha (1. The details of region-wise refinance available to the banks are provided in Table 2. Manipur. NABARD sanctioned limits of ` 13.40 crore). 2. respectively.66 crore to 81 RRBs under ST-SAO as against ` 9. Jammu and Kashmir. fisheries. The maximum outstanding was `13. Of these. Sikkim Eastern Region: Bihar.12 NABARD provides Short Term refinance support to Regional Rural Banks (RRBs) for financing Seasonal Agricultural Operations (SAO) and Other than SAO (OSAO) activities. the quantum of refinance provided to b. Rajasthan ( `1. 2. This refinance was available to Table 2. Assam (272). `251.90 crore for Development ` 27. RRBs having Net NPA upto 22 Hilly Region : Jammu and Kashmir.624 HWGs have been formed in various states viz. which was fully utilised by them.16 NABARD sanctioned consolidated limits to disbursements by the RRBs. 2.14 and With a view to increasing the credit flow in the Nicobar Islands.366).575 crore). Sikkim. The limit included `1.925.66 crore with 100 per cent achievement level under the limit sanctioned during 2011-12.91 crore of for Tribal Population Pulses (DTP) and National Development Programme (NPDP).13 In order to further enhance the crop loan RRBs was enhanced to maximum 55 per cent of their crop loan disbursements with relaxation in eligibility criterion.29 crore for Oilseeds Production Programme (OPP).3: Sanction of ST(SAO) Credit Limits to RRB for the year 2011-12 Net NPAs (%) of RRB NE/Hilly Region/ A & N Islands Eastern Region Rest of India NE: Arunachal Pradesh.442. Six RRBs in the North Eastern Region were sanctioned credit limit of ` 104. West Bengal.

Interest Subvention to Farmers 2.097. The Interest subvention for 2011-12 has been estimated at `3.96 crore has been received from GoI. technological up gradation. Co-operative Banks and RRBs. Additional subvention of 3 per cent was announced to those farmers who would repay crop loans promptly within one year of disbursement. Thus the effective interest rate paid on crop loan by such farmers would be 4 per cent. NABARD and the Governments of Andhra Pradesh.18 The Ministry of Textiles (MoT). Interest subvention was given to NABARD by GoI for providing concessional refinance to SCBs and RRBs at 4. The total amount disbursed by GoI during the year under various interest subvention schemes is ` 2. The aggregate limit for ST-OSAO sanctioned during 2011-12 was `677.688. Aggregate interest subvention of ` 1. NABARD has been designated as the implementing . Kerala.00 crore in the previous year.00 crore.62 crore and `2.94 crore under the interest subvention scheme 2009-10 and 2010-11. c. Revival. This scheme aims at revival of handloom sector by waiver of overdue loans along with its capacity building.52 crore. 23 b. GoI vide its Notification dated 9 January 2012 issued operational guidelines for “Institutional Credit” component under the Integrated Handloom Development Scheme (IHDS) for the handloom sector in the country. Reform and Restructuring Package for Handloom Sector” with a total outlay of `3. So far.200/. agency for channelising the Margin Money & Interest Subsidy components under the Package. with fresh flow of credit.a. Comprehensive Package for the Handloom Sector 2. Margin Money assistance will be provided @ `4. to be supported by 3 per cent interest subvention and credit guarantee through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) floated by Small Industries Development Bank of India (SIDBI). Interest Subsidy will not be available from the date of the loan account turns NPA even within the period of 3 years. respectively. The focus of the assistance under the Package is to ease the existing chocked credit lines to the handloom sector.884 crore will be implemented by NABARD. co-operative banks and RRBs for deploying their own funds for lending crop loan upto ` 3 lakh per farmer. Reform and Restructuring Package for Handloom Sector 2. introduction of Common Accounting System (CAS) and Management Information System (MIS).000 crore and so far an amount of `424. Uttarakhand. GoI to be passed on to the banks.17 Finance In the Budget speech for 2011-12. 19 states have given their consent to implement the Package in their states out of which tripartite agreement has been signed between GoI.57 crore has been released by the MoT.19 The continuance of the interest subvention scheme was announced in the Union Budget 2011-12. Interest subvention was made available at 2 per cent per annum to public sector banks. The Package will be monitored at All India and State Level Monitoring Committees. at an interest rate of 7 per cent p. The first instalment of `7. the Minister announced that a Centrally per cent per annum for 3 years from the date of first institutions by the GoI so that they may avail credit facility at subsidised rate. Other Initiatives a. their SHGs & JLGs so as to raise borrowings from the Banks/Financial Institutions including RRBs.111.5 per cent were eligible for refinance. Sponsored Plan Scheme on “Revival.00 crore. was provided by GoI to NABARD. against `600. or less. SCBs/DCCBs. The maximum utilisation was `653. West Bengal and Karnataka so far. However. disbursal will be provided Interest Subsidy @3 to weaver/eligible B. starting with the current financial year.per individual weaver.5 per cent interest rate.

Table 2.4: Rates of Interest on Refinance (per cent) Sl. No. 1 2 3 4 5 6 7 Purpose SAO ST (Others – other than weavers) ST (Weavers – Primary and Apex/ Regional Weavers Cooperative Societies.) ST – Weavers - Financing of Primary Weavers Cooperative Societies ST-Other than SAO loans (ST- OSAO) ST - Working capital requirements of SHDC MT (Conversion) loan Agency i) SCB/RRB ii) CCB & PACS through RRB / CB (PSB) SCB SCB Scheduled Commercial Banks RRB SCB & Scheduled Commercial Banks SCB/RRB Interest Rate 4.5 4.5 10.0 10.0 10.0 10.0 10.0 7.25 (minimum)

d. GoI Package for Sugar Industry
2.20 NABARD continued to act as the nodal

from GoI during the year 2011-12 towards interest subvention, ` 383.38 crore was released to 212 sugar mills operating in 11 States viz., Maharashtra, UP, AP, Tamil Nadu, Uttarakhand, Odisha, Madhya Pradesh, Gujarat, Goa, Punjab and Karnataka.

agency for GoI package for restructuring of term loans of co-operative sugar mills. Out of ` 200.13 crore received from GoI towards interest subvention, ` 200.02 crore was disbursed to 76 co-operative sugar mills in Maharashtra and Odisha. NABARD also acted as the nodal agency for routing the interest subvention to co-operative banks and RRB under “Scheme for extending Financial Assistance to Sugar Undertakings -2007”. Out of ` 383.59 crore received

e. Interest Rates on Refinance Assistance
2.21 and The rates of interest on Short Term/Medium Scheduled Commercial Banks during Term (ST/MT) refinance to Co-operative Banks, RRB 2011-12 are indicated in Table 2.4.

Investment Credit
2.22 NABARD refinances term loans given by Banks, Regional Rural Banks and refinance. The eligibility criteria for refinance for the year 2011-12 continued to be linked to Net NPA in case of Commercial Banks, SCBs, PUCBs and RRBs and recovery for the SCARDBs. However, for the current year SCBs, SCARDBs and RRBs were classified under four categories based on their Net NPA/ Recovery position as against five categories during 2010-11 for the purpose of deciding their eligibility for availing of refinance. SCBs with Net NPA above 20 per cent or Audit Classification of C/D; SCARDBs with recovery of less than 30 per cent or Audit Classification of C/D; and RRBs with net NPA above 15 per cent and those with accumulated losses 24 Commercial

Cooperative Banks for farm and non-farm sector activities. These loans have a currency of 3-15 years and include advances for farm investments, allied activities, small and micro enterprises, agro-processing, organic farming, non-conventional energy and rural housing.

A. Refinance Policy and Eligibility Criteria
2.23 The refinance policy for 2011-12 laid down the eligibility criteria for banks to avail of NABARD

and not complying with 42(6) (a) (1) of RBI Act, 1934, were not considered eligible for availing refinance during the year. 2.24 Commercial Banks/ PUCBs/ NEDFi with Net

other than ‘A’) alternative security like pledge of Government Securities or Fixed Deposit Receipts issued by Scheduled banks/ good working SCB (in the event of Government Guarantee not forthcoming), was considered subject to fulfillment of certain terms and conditions as prescribed by NABARD. Refinance to all SCARDBs was against Government guarantee.

NPA exceeding 3 per cent were not eligible for availing refinance during the year. NBFCs registered with RBI, having AAA rating from a SEBI approved agency and with Net NPA not exceeding 3 per cent, were eligible for refinance. Refinance was provided to Commercial Banks, SCBs and RRBs at 100 per cent of the eligible bank loan for all activities under ‘thrust areas’. With effect from 2 September 2011, refinance to SCARDBs was extended as term loans as against the earlier practice of contribution to floatation of debentures. Under the new system, all SCARDBs are eligible for refinance of 90 per cent of the eligible bank loan disbursed.

D. Interest Rates on Refinance
2.27 During the year, the rate of interest was revised five times in the range of 8.25 to 11.25 per cent depending upon the type of agency and quantum of refinance. The revised interest rate on refinance to CBs and RRBs against loans to MFIs for on-lending to clients was 3 per cent less than that being charged by banks subject to the minimum interest rates prevailing for various agencies in various regions of the country.

B. Special Package for North Eastern and Other Regions
2.25 For increasing the credit flow to the States in the Eastern Region (West Bengal, Odisha, Bihar, Jharkhand and Andaman & Nicobar Islands), North Eastern Region (Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura including Sikkim), Hilly States (Jammu & Kashmir, Himachal Pradesh and Uttarakhand), Lakshadweep and Chhattisgarh, NABARD continued to (i) apply uniform interest rate on refinance to all client institutions in the north eastern region, (ii) extend 5 per cent relaxation in recovery norms for SCARDBs and relaxation in Net NPA norms by 5 and 3 per cent, respectively, for SCBs and RRBs and (iii) provide refinance at 100 per cent of the eligible bank loan for all client institutions except SCARDBs for all purposes.

a. Concessional rate of interest for Eastern Region
2.28 For ensuring investments in agriculture for enhancing production and productivity of crops in the Eastern Region, comprising of the States of Assam, Bihar, Jharkhand, Chhattisgarh, Odisha, West Bengal and Eastern UP (covering 28 districts of UP), banks were eligible for 100 per cent refinance at a concessional interest rate of 7.50 per cent for specified eligible activities during 2011-12 and 2012-13 after achieving minimum target in key activities viz. Water Resources Development, Land Development, Farm Equipments, Seed Production and under group mode to SHGs/ JLGs for Tractor financing. During the year, an amount of ` 128.71 crore was disbursed under the above scheme by various banks.

E. Refinance Support
2.29 During the year 2011-12 the refinance disbursement was ` 15,421.70 crore as against the budget of ` 14,995.00 crore.

C. Security Norms
2.26 For release of refinance to SCARDBs and SCBs (not scheduled and having audit classification

25

Table 2.5: Agency wise disbursement of Refinance (` crore) Agency 2009-10 Target SCARDBs SCBs CBs RRBs PUCBs ADFCs/NABFINS Total 2290.00 1040.50 6085.50 1879.00 5.00 11300.00 Disb 2221.30 1251.95 6057.19 2457.46 16.14 5.05 12009.08 % Share 18.50 10.43 50.44 20.46 0.13 0.04 100.00 Target 2160.00 1340.00 7052.00 2288.00 85.00 55.00 12980.00 2010-11 Disb 2351.85 1356.62 7348.49 2287.84 84.87 56.20 13485.87 % Share 17.44 10.06 54.49 16.96 0.63 0.42 100.00 Target 2445.00 1205.00 8030.00 3035.00 60.00 220.00 14995.00 2011-12 Disb 2444.93 1192.29 8433.75 3086.19 54.08 210.46 15421.70 % Share 15.85 7.73 54.69 20.01 0.35 1.37 100.00

a. Agency-wise Disbursements of Refinance
2.30 During 2011-12, Commercial Banks have and SCBs have availed of refinance

central

(12.10%),

eastern

(11.60

%),

western

(10.80%), and north eastern region (1.50%) (Table 2.6 and Chart 2.3).

availed of refinance amounting to ` 8,433.75 crore, SCARDBs amounting to `2,444.93 crore and `1,192.29 crore, respectively and RRBs have availed of refinance amounting Chart 2.2). to `3,086.19 crore (Table 2.5 and

c. Sector-wise disbursements
2.32 During 2011-12, the major share of refinance has been accounted by NFS (23.18 %) followed by SHG (19.92 %), Farm Mechanisation (13.84 %), Animal Husbandry (10.18%) and Plantation & Horticulture (10.03%) (Table 2.7).

b. Spatial Distribution of Refinance
2.31 The spatial distribution of refinance

F. Co-financing
2.33 ` 155.55 During the year, an amount of ` 1.91 crore crore for 35 ongoing projects under was disbursed taking the cumulative disbursement to co-financing.

disbursement across regions indicated that major share had been accounted by the states in the southern region (48.30%), followed by northern (15.7%),

26

40 12.00 1415.00 6869.00 10.35 1928.10 10. Punjab.07 1478.20 7.20 100.00 11300.00 935.05 1671. Uttar Pradesh and Uttarakhand Western: Gujarat.70 % Share * 15. 2810.70 1. Arunachal Pradesh.80 48.16 7440.00 Target 2835. State Governments & the GoI. for routing of subsidy admissible under the schemes.00 Target 2928.63 1253. J&K.00 2009-10 Disb.00 5804.89 12009.80 2. Delhi and Chandigarh North Eastern: Assam.70 265.86 1783.73 13485.53 1867.6: Region-wise Disbursement of Refinance (` crore) Region Target Northern North Eastern Eastern Central Western Southern Total 2790.82 1405.30 100. Tamil Nadu. 2419.00 258.00 1718.Kerala. Mizoram. 2426. The schemes were as follows: (i) Construction of Rural Godowns (ii) Development/ Marketing Standardisation Strengthening of Agriculture and Infrastructure.64 5821. Puducherry and Lakshadweep Islands G.87 % Share * 20.85 891.00 210. Odisha. West Bengal and Andaman &Nicobar Islands Central: Madhya Pradesh.30 9.30 49.79 5967.60 1111.73 15421. Tripura and Sikkim Eastern: Bihar. Meghalaya.00 1680.37 232.50 11. Nagaland. Rajasthan.87 139.30 9. Maharashtra.00 266.20 1.34 NABARD continued to serve as nodal agency for implementation of various Capital Investment Subsidy Schemes (CISS) of the GoI.00 1598.00 *: % share of the total disbursement during the year Northern: Haryana.40 14. Himachal Pradesh.00 12980. Karnataka. Manipur.00 1927.00 2010-11 Disb.00 14995. Chhattisgarh. Goa. Capital Investment Subsidy Schemes 2.60 12. Grading (iii) Establishment of Agri-Clinic and Agri-Business Centres (iv) (v) Bihar Ground Water Irrigation Scheme Scheme for installation of Solar Off-Grid and Decentralised Applications (vi) National Project on Organic Farming 27 .00 1185.00 2011-12 Disb. Jharkhand. Dadra & Nagar Haveli and Daman & Diu Southern: Andhra Pradesh. monitoring the progress of the scheme and coordinating with banks.70 100.08 % Share * 20.Table 2.00 965.30 43.00 1392.00 4500.

36 2026.68 crore was released in respect of 2.77 0.35 6. During the year subsidy of ` 148.26 3072.5 6. contract farming and setting up of (i) Rural Godowns 2.62 725.50 680.51 1547.1 18.66 377.0 0.00 1243.000 MT.3 28. Grading and Standardisation 2.88 889.6 0. standardisation and quality certification of produce in the agriculture and allied sectors.0 5.47 211.4 8. e.6 1.00 143.00 2857.1 2. Integrated Development of Small Ruminants and Rabbits c.00 12009.30 3173. h.00 38.51 504.92 12.0 100.00 649. GoI from 10.950 units (cumulatively `798.84 3446.39 402.87 14995.88 15.98 3574. Salvaging and Rearing Male buffalo calves Utilisation of Fallen Animals Pig Development Dairy Entrepreneurship Development Scheme Poultry Venture Capital Fund (Subsidy) (ii) Agricultural Marketing Infrastructure.02 1. With effect from 20 October 2011.00 11300.00 160.41 0.00 52. product deterioration and distress sales.50 3465.07 2134.7: Sector-wise Disbursement of Refinance (`crore) Purpose Target Minor Irrigation Land Development Farm Mechanisation Plantation & Horticulture PF/SGP/AH-Oth Fisheries Dairy Development Forestry Storage Godown & Market Yard SGSY Non Farm Sector SC/ ST-AP SHG Others Total 660.00 230.00 976.20 91.60 5.00 570.7 25.40 349.00 362. g.00 1817.2 3.79 228.03 4.27 13.45 918. f.3 1.0 0.9 15.00 3115.000 MT to 30.00 1714.00 0 4298.00 172.21 4. viz: Government of India.00 1168.22 151.11 9. Establishment/ Slaughter Houses Modernisation of Rural b.00 975. grading.00 803.00 322.46 187.8 0.37 47. a.00 Disb % Share 660.00 2194.37 23.3 100.61 295.36 This scheme aims at establishing and strengthening infrastructure for marketing.00 15421.18 0.00 2010-11 Disb Share % 920.00 149.00 750.56 999.00 1975.00 266.99 2.67 1714.00 2852. the maximum capacity admissible for subsidy under the scheme was revised by the MoA.03 19.Table 2.00 429. thereby helping them to avoid wastage.17 100.1 13.35 The scheme is being implemented by the of Marketing and Inspection (DMI).0 Target 909.69 1762.00 274.00 21.9 0 26.63 2545.97 157.1 2.51 crore for 22.8 2.0 2011-12 Target 1071.1 1.00 130.00 795.4 6.70 *: % share of the total disbursement during the year (vii) Eight schemes relating to Animal Husbandry Sector. The scheme is reform-linked and is being implemented by the DMI.68 6.73 303. GoI in States/UTs that have amended their Agricultural Produce Market Committee (APMC) Act to facilitate direct marketing.82 Share % 4. Establishing Poultry Estates and Mother Units for Rural Backyard Poultry d.00 2009-10 Disb 496. It aims at creation of scientific storage facilities for rural farmers.79 54.5 14.57 170.40 12.665 units).08 12980.00 579.67 4.1 1.98 698.9 0. Directorate 28 .00 91.00 156.00 13485.3 3.00 132.00 536.00 0 3642.59 1876.28 3.84 10.1 1.

companies. GoI in November 2010. cooperatives.64 lakh units of shallow tubewells/ dugwells with pumpsets.40 There is no change in the Capital Subsidy (iii) Agri-Clinics and Agri-Business Centre 2.38 The “Bihar Ground Water Irrigation Scheme cum Refinance scheme for installation of Solar Water Heating Systems. for projects taken up by individuals.02 crore was released to the banks by NABARD.28 lakh hectare of agricultural land of the State by installing 4. During the year. to encourage replacement of non-renewable energy sources like fossil fuels.92 crore for 537 units). During the year. (iv) Bihar Ground Water Irrigation Scheme 2. subsidy amounting to `166. the rate of subsidy is 33. The Minor Water Resources Department.83 crore was released including subsidy and refinance in respect of 45. back-ended subsidy @ 25 per cent of the approved capital cost. (v) Scheme for installation of Solar Off-Grid and Decentralised Applications 2.44 crore was released in respect of 54. NGOs and State Agencies.39 The subsidy cum refinance scheme under the Nehru Solar Mission (JNNSM) was Jawaharlal launched by the Ministry of New & Renewable Energy (MNRE). with NABARD channelising the admissible cooperative sectors. 16.369 units).agricultural produce markets in the private and state. It is implemented through all Commercial Banks and Regional Rural Banks in the 29 .32 crore has been released as subsidy so far for 50. farmers’ groups. In order to facilitate easy monitoring of this scheme. farmers.030 units (Cumulatively ` 55.655 units. an amount of `5. In 2011-12. In case of North Eastern states. promoted by the Planning Commission. During the year. 24 states and 4 Union Territories have amended their APMC Act as on date and were eligible to receive subsidy assistance for projects under the scheme.80 crore was released in respect of 877 units (cumulatively `440.a for Commercial Banks and RRBs. The scheme envisages coverage of all the districts in the state. The scheme was revised as the Capital Subsidy for Solar Lighting & Small Capacity Photo Voltaic (PV) Systems with effect from 15 March 2012 and the earlier Capital Subsidy cum Refinance scheme closed on 12 March 2012. During the year an amount of `51. over a period of three years.37 The scheme was launched in April 2002 with the objective of supplementing public extension by facilitating agricultural graduates to provide fee based extension services to farmers.017 units). kerosene and diesel with solar energy to meet energy requirements. The scheme covers projects specifically approved by the Project Approval Committee of the MNRE. With this.589 units were sanctioned under the scheme for which a subsidy of `35.54 crore was released in respect of 147 units (cumulatively `10. The TFO ceiling has been enhanced from ` 10 lakh to `20 lakh for individual projects (`25 lakh for extremely successful projects) and from `50 lakh to `100 lakh for group projects. Cumulatively `83.83 crore for 5. the APMC Act was amended in the states of Mizoram and Uttarakhand. NABCONS. a subsidiary of NABARD has commissioned a webbased MIS. (BIGWIS). with a ceiling of `50 lakh. The scheme for Solar Lighting & Small Capacity PV Systems provides for capital subsidy of 40 per cent of the project cost. subsidy amounting to 45 per cent of the project cost. Government of Bihar serves as the nodal department for implementation of the project. was introduced in Bihar in 2009-10 to provide irrigation to 9. The Scheme became operational with effect from 20 October 2004. 2. The entrepreneur has the option to avail of either subsidy or bank loan at concessional rate of interest at 5 per cent p.33 per cent subject to an upper ceiling of `60 lakh. The scheme provides for a creditlinked. hilly and tribal areas and entrepreneurs belonging to SC and ST categories.

Establishment/ Modernisation of Rural Slaughter Houses 2. (vii) Schemes under Animal Husbandry Sector 2. NGOs. for implemented on a pilot basis in three states. launched during 2010-11. cumulatively `14. The Rural Backyard Poultry component of the scheme intends to promote rearing of low input breeds that can survive in rural areas and is intended for BPL beneficiaries. Under the scheme.01 crore was released in respect of end subsidy to the extent of 25 per cent of the outlay (33.. Establishment of Poultry Estates and Mother Units for Rural Backyard Poultry 2. two projects have been sanctioned for establishment of Poultry Estates in Odisha and Sikkim.59 crore for 1. Utilisation of Fallen Animals 2. 688 units.41 The National project on Organic Farming is a central Sector Scheme introduced in the 10th Five Year Plan for promotion of organic farming in the country. establishing and modernising slaughter houses in rural areas. through NABARD to the banks for financing rearing/breeding of sheep and goat and rearing of rabbit under the scheme. subsidy of ` 1.370 units).45 The Scheme aims at establishment of poultry estates having up to 100 broiler/ layer units on the lines of industrial estates. As on 31 March 2012. inputs supply and marketing arrangements would be provided. Nagaland. the scheme is to be Andhra Pradesh and Meghalaya.00 crore was released for 1. Integrated Development of Small Ruminants and Rabbits 2. Maharashtra and Uttar Pradesh under the scheme.42 The implementation of eight schemes relating to Animal Husbandry Sector launched by GoI during 2009-10 and 2010-11 continued in the current year also.33% in NE and hilly areas) is provided for establishment of commercial and industrial units.44 The scheme aims at encouraging commercial rearing of sheep. A State Level Sanctioning and Monitoring Committee (SLSMC) has been constituted by the State Animal Husbandry Department in association with NABARD in each State for sanctioning of subsidy/ interest subsidy/ interest free loans under these schemes and also monitoring their progress.47 The scheme. West Bengal.066 Sheep/Goat rearing units (cumulatively `8. As on 31 March 2012.33 per cent of project cost subject to a ceiling of `60 lakh. a. Karnataka. 100 per cent interest subsidy on short term loan is provided for rearing up to nine male buffalo calves. Scheme for Salvaging and Rearing Male buffalo calves 2. Back ended capital subsidy at 25 per cent of the outlay (33.(vi) National Project on Organic Farming 2. The scheme was modified in 2011-12 to exclude vermin-hatchery. Madhya Pradesh. Bihar. During the year. subsidy amounting to `7. b. Credit linked back end subsidy up to a maximum of ` 2. Andhra Pradesh. d. c. goat and rabbits by farmers. viz.00 crore has been made available for establishment/ modernisation of rural slaughter houses. projects for by-products utilisation. cold storage and cold chain and certification of quality. During the year. The quantum of eligible subsidy is to the extent of 25 per cent to 33. Uttar Pradesh.10 crore was released for establishment of one unit under the scheme. GoI has sanctioned 899 Mother Units in Kerala. cumulatively `0. partnership firms and assist corporate bodies for rearing male buffalo calves for meat production and recovery of hides. Punjab. As on 31 March 2012.43 As per GoI guidelines. As on 31 March 2012. aims at improving the quality of hides and skins from fallen .33 % in NE States hilly areas and SC/ST beneficiaries) is being provided by GoI. Back 30 e.56 crore was released in respect of 12 units.46 to The scheme was launched in 2010-11 by GoI farmers. where common infrastructure facilities.

establishment of dairy product transportation facilities.51 During the year.297 units) was released.05 crore for 29. Under the scheme. subsidy worth `114. Under the scheme. transport vehicles. 90 per cent and 50 per cent of the TFO respectively are provided as back ended capital subsidy. Pig Development 2. hybrid layer (chicken) and broiler units.33% for SC/ST farmers) of the outlay is being provided for establishment of small dairy units. large feather processing processing units. Poultry Venture Capital Fund (Subsidy) 2.. To recoup . including Sikkim and hilly areas) for pig breeding/ rearing/ fattening units.33% in NE States. 25 per cent back ended capital subsidy is available (33. the State Level Sanctioning and Monitoring Committee (SLSMC). feed mixing plants.36 crore was released for establishment of 189 units.873 units. retail outlets. Under the scheme. wherein. Dairy Entrepreneurship Development 2.26 crore was released for establishment of 1. The scheme will also facilitate compliance to the Infectious & Contagious Diseases in Animal Act 2009.49 The scheme was launched in 2010-11 for encouraging modern dairy farms to produce clean milk and heifer rearing farms to conserve good breeding stock.animals and to convert other by-products into value added items. During the year. cold storage for poultry products.33% for SC/ST farmers and NE States including Sikkim) of the outlay for establishment of Breeding farms for low input technology birds like turkey. 6 Evaluation/Commodity Specific/Special Studies were conducted.50 The earlier Poultry Venture Capital Fund (Interest Free Loan) Scheme was modified as Poultry Venture Capital Fund (Subsidy) with effect from 1 April 2011 by replacing the interest free loan and interest subsidy with capital subsidy. Evaluation Studies 2.36 crore for 27. During the year. g. poultry dressing plants. aircrafts. especially in non-traditional States. back-ended capital subsidy is available at the rate of 25 per cent (33. The modified scheme was launched for encouraging poultry farming activity. The scheme also aims at upgrading traditional technology to handle milk on a commercial scale and bringing about structural changes in the unorganised dairy sector so as to facilitate initial processing of milk at the village level itself. 50 per cent of the outlay as back ended capital subsidy is provided for retail outlets/ facilities for live stock markets.48 The scheme was launched in 2010-11 for encouraging commercial pig rearing by farmers so as to improve the performance of native breeds through cross-breeding. H. units. A study on Coping Mechanism conducted in Bidar and Kolar districts of Karnataka pointed out that rainfall fluctuations resulting in drought / flood and price instability were the two major concerns of the agricultural households in the dryland areas. Similarly. During the year.75 crore has been released for 1. improving production of poultry products which have ready market all over the country. proper disposal of carcasses of animals is mandatory. backended subsidy amounting to 25 per cent (33.61 crore for establishment of two CUCs. West Bengal has sanctioned subsidy amounting to `2. providing quality meat in to consumers areas in hygienic poultry conditions dressing and and improving hygienic sale of poultry meat and products urban through marketing outlets. subsidy amounting to ` 6. Emu etc.319 units (cumulatively `124. cold chain and dairy marketing outlets/ dairy parlours. emu. etc. units. 31 Subsidy amounting to ` 4. processing f. heifer rearing units. It also aims and to reduce/ check to environmental pollution bird-hit hazards purchase of milking machines/ milk testers/ bulk milk cooling units/ processing equipment.634 pig rearing units. h. central grower units. Under the Scheme for establishment of Carcass Utilisation Centre (CUC) and Bone crushing unit. Cumulatively subsidy amounting to ` 7.

much lower poor than seed the productivity Lack of of frontline irrigation and non demonstration facilities. etc. industry/ wholesaler and bank/cooperative society will reduce farmers’ distress to a certain extent. Four of the villages were covered by opening new branches whereas 39 were covered under BC model. villages (91%) were covered under banking fold either through brick and mortar branch or through 32 . outstanding. water availability can be improved upon by tapping towards the potential irrigation facilities and encouraging farmers towards precision farming/move changing cropping pattern. pertaining to 50 branches and around 4. The average productivity at 717 kg/ha. relatives.000 population) identified in the state. 2. was. Marketable surplus of the commodity was 98 per cent.838 villages (with more than 2.) replacement rate into Trends in Disbursement and Outstanding’ districts i. Aurangabad (Maharashtra). High export potential of the crop demands international quality standards in pre harvest (farm practices) and post harvest stage (processing and storage) operations. Asset poor households and vulnerable/older farmers were found to cope less with risks because of lack of resources.52 Commodity Specific Study on cumin was in of Banaskanthta cumin. 2. While the coverage of small and marginal farmers appeared to be adequate. reduced family expenditure and borrowed from SHGs.. the farmers kept milch animals.670 period from 2007-08 to 2010-11 was taken up in five Ujjain (Madhya Pradesh). lack of sound revenue model.944 No Frills Accounts were opened and pension distributions in 11. inactive accounts. disbursement. Tripartite arrangement for marketing between farmer. being a seed spice crop. etc. were the main reasons for the same. and Surendranagar cultivation was ICT based BC model as on 31 December 2011. the study confirmed certain macro concerns like credit growth leading to more of deepening and less widening and also low and declining share of investment credit. out of 48 unbanked villages (having over identified the designated banks had extended banking services in 43 villages (90%) by end of January 2012.810 No Frills accounts and issued 12. short term. adoption of weed.the loss in income due to agricultural shocks. Seventy appointed one by Business various Correspondents in sample (BCs) district banks (Panipat) had opened 21. etc.500 borrowers. Majority of the marketable surplus was sold in regulated markets and only 5 per cent was sold to village traders. the issues like low business volume. education and health. Study on ‘Financial Inclusion’ population in Una district 2000) of Himachal in Pradesh state. reared sheep and goat. The study looked into various aspects of agricultural credit such as coverage of small and marginal farmers. Since rainfall variability was found to be one of the major problems faced by the farmers. disease and pest management.53 Study on ‘Financial Inclusion’ in Hayana 1.250 kg/ha. The study clearly brought out that agriculture credit variations can be captured only at disaggregated level as it becomes increasingly difficult revealed that out of 1. indicated that. are need to be assessed so as to make them viable and sustainable in the long run. credibility gap. Patiala (Punjab).989 smart cards. West Godavari (Andhra Pradesh) and Burdwan (West Bengal).08.299 accounts were done through the BCs in the sample district (Una). The producer’s share in the consumer’s rupee was 71 per cent in regulated markets and 68 per cent with traders. The study revealed that though the BC model has improved access to financial services. inadequate infrastructure.e. A total of 13. 2. friends and moneylenders. long term. consistent with their respective shares in the numbers and area operated. (1.54 A Study on ‘Agricultural Credit : An Analysis for conducted management districts of Gujarat to analyse the supply chain Cumin profitable with return per rupee on cultivation being `2.

19 Investment Specific Studies and 2 Special Studies covering farm and rural non-farm sectors were conducted by the Regional Offices. Major findings and recommendations of the studies are being forwarded to the banks for suitable action. assessing the adequacy of the loan amount provided by the banks. outstanding and repayment of credit for agriculture at branch level is maintained as well as made available for further policy formulation.55 A Study on ‘Graduation of SHGs’ was the farming needs.to make generalisations as variations / area specific issues exist at each level.57 The government has set-up Rural new line of credit for rural infrastructure projects. a 33 . I. the Government of India (GoI) made a dedicated allocation of ` 2. building strong SHGs based on savings and financial discipline can help more and more members to graduate. so as to provide more credit and grant.000 crore for financing warehousing under the RIDF during 2011-12. study involved and identify the process the factors that can promote graduation process. district.56 During 2011-12. Graduation level of an SHG or its members was measured as a two dimensional index. About 38 per cent of the SHG members took up additional activity. Infrastructure Development Fund (RIDF) to improve rural infrastructure through NABARD. This chapter deals sanctions/disbursements under RIDF. two-fifth the SHG members did not graduate in terms of savings dimension. The insight into various aspects of agricultural credit can be made only when authentic granular information about disbursement. estimating the benefits accruing from the investment. At disaggregated level. NABARD created (RIPF)’ a ‘Rural and Infrastructure designed Promotion the Fund also NABARD Infrastructure Development Assistance (NIDA). Considering the intensity of the storage problem in rural area. Further. In addition. 2. etc. may it be state. Available technology should make it possible to generate granular data for capturing monthly disbursements and outstanding so that the seasonality of agriculture (which varies and is changing) is not lost. conducted in Karnataka and Odisha to measure extent of graduation of SHGs. while monitoring agriculture credit. RIPF and NIDA. individual savings account and micro-enterprises being the two dimensions. examining adherence to the techno economic specifications. identifying the constraints at the field level in the implementation of schemes. Considerable proportion of SHG members was dependent on nonSHG loans for consumption needs and equally sizeable proportion availed non-SHG loans for meeting Financing Rural Infrastructure 2. Training emerged as an important factor in determining the level of graduation of an SHG. The Study based on 240 sample SHG members and 40 control households indicated that modal value of member’s saving was `80 per month while the range of saving was between `30 to `200. after joining SHGs. Investment Specific Studies 2. branch as well as credit agency. About three-forth of SHG members were tapping loans for productive purposes. The studies were conducted with the objective of assessing the potential of selected investments in the district/ state.

out of which ` 2. riverine fisheries. a wide range of 31 activities.000 crore has been exclusively dedicated for creation of warehousing facilities in different States on a priority basis. marketing infrastructure. soil conservation. infrastructure for IT in rural areas. reclamation 34 . Allocations 2. adopting a ‘last mile approach’ to facilitate completion of the projects delayed on account of budgetary constraints. soil conservation. watershed. The loans are provided at 95 per cent of project cost to all States.61 These include irrigation projects. and setting up of KVIC industrial estates/centres.63 Rural Connectivity projects include rural roads & rural bridges and a loan for this sector is being provided at 90 per cent of the project cost to NER & Hilly States and at 80 per cent to all other States. The Union Budget for 2011-12. Sectors/Activities 2.59 The Corpus of the Fund has grown to `18.000 crore under RIDF I (199596). only ongoing irrigation. The coverage of RIDF was broad-based in the subsequent tranches and at present. flood protection. is being funded under the RIDF. announcement was made to this effect in the Union Budget of 1995-96 with the sole objective of giving low cost fund support to State Governments and State-Owned Corporations for quick completion of ongoing projects in medium and minor irrigation. and watershed management projects were financed under RIDF I. especially for girls and “Pay & Use” toilets in rural areas. watershed management and other forms of rural infrastructure. agriculture and horticulture farms.Rural infrastructure Development Fund 2.58 The RIDF was instituted in NABARD after an of water logged areas animal husbandry. storages. godowns. testing laboratories.500 crore under a separate window for funding rural roads under the Bharat Nirman Programme. desalination plants in coastal areas. market yards. A. plantation and horticulture.62 The Social sector include drinking water projects.500 crore which is inclusive of ` 18. and construction of anganwadi centres. flood protection. hydel projects (up to 10 MW).000 crore under RIDF XVII during 2011-12. The financing of rural road & bridge projects was started during RIDF II. (ii) Social Sectors 2. construction of toilet blocks in existing schools. village knowledge centres. The loans for the above sectors are provided at 90 per cent of project cost for NER & Hill States and at 85 per cent to all other States. allocated an amount of ` 18. forest development.000 crore under RIDF XVII (2011-12) from an allocated amount of `2. cold fishing harbour/jetties. (ii) Social Sectors and (iii) Rural connectivity as detailed below: (i) Agriculture and related Sectors 2. The successive allocations to the RIDF in the Union Budgets have been presented in Chart 2. public health institutions. seed. grading/certifying mechanisms. as approved by the GoI. These 31 activities are classified broadly under three categories.52. B. taking the cumulative allocation to `1. (i) Agriculture and related sectors. (iii) Rural Connectivity 2.60 In accordance with the GoI’s instructions.4.

64 Out of the allocated amount of ` 18. 2.C.493.90%).2 100.97 5011.701.f 13 February 2012. Loan disbursements from RIDF on or after April 01. disbursements (20%) in the past tranches and rural Credit Deposit (CD) ratio (15%) as prescribed by the Project Sanctioning Committee (PSC). 2.000 crore was assigned to the States on the basis of allocative norms with weights. Each drawal by the State Government is treated as a separate loan and is repayable over a seven years period including a two years moratorium. social sector projects (17.66 State Government’s borrowings under RIDF Tranches of RIDF have so far been implemented.5 percent. For projects sanctioned under RIDF XII and XIII.5 6. As all funding through RIDF is project. rural population (20%). the projects pertaining to eligible sectors are submitted to NABARD by the State Governments.000 crore (including `2. Of the total number of projects sanctioned.6 9. However.90 %) and agri related projects (9.8: Sector-wise Projects and Amounts Sanctioned under RIDF XVII (As on 31 March 2012) Sector No.82 20701.8). 18. 2.32 2663. depends upon the pace at which it implements the projects. RIDF XVII– Terms and Conditions 2.5 per cent below the prevailing Bank rate. The maximum phasing in the case of major and medium irrigation projects and other stand-alone projects involving RIDF loan of `50 crore and above is five years. While tranche I to X were closed earlier.5 per cent to NABARD till 31 March 2012. i. The tranche XVII was being implemented during the year. availing of sanction (5%).5 12.50 per cent followed by rural road projects (24. of Projects 2717 860 6294 3311 5 3857 1118 18162 Share in Amt Total No.0 are governed by Article 293 (3) of the Constitution under which GoI determines its borrowing powers from the market and financial institutions during a year. D.9 24.12 crore were sanctioned under RIDF XVII.50 per cent w. 2012 will be at 1. however.20 %).57 3707.specific and project-based. related Warehousing Total . 17 implementation phase for projects sanctioned under RIDF XVII is spread over 3-5 years. geographical area (20%).e. The quantum of actual drawal of funds by a State Government. except for the initial 20 per cent of the project cost (30% in North-East) which is given as ‘mobilisation advance’.7 34.12 Share in Total Amount (%) 27.1 17.7 4.9 0.e.0 5686. viz. rural infrastructure development index (20%).0 22. irrigation projects accounted for 27. NABARD provides funds on ‘reimbursement basis’.82 crore was sanctioned for warehousing projects as at end of March 2012 (Table 2. tranche XI was closed as at end-March 2012.65 As was the practice in the earlier tranches.000 crore for warehousing) under RIDF XVII during 2011-12. NABARD places demands for deposits on the banks based on the bank-wise allocation made by RBI. An amount of ` 1. RBI has allowed the State Governments to pay at the previous Bank Rate plus 0. Depending on the drawls by State Government. Excepting the mobilisation advance.2 17. rural bridges (12. The rate of interest payable by NABARD on deposits from commercial banks under RIDF-XVII is 35 Irrigation Rural Bridge Rural Roads Social Sector Power Ag. the implementation period has been extended until 31 March 2013 to enable State Governments to complete on-going projects and avail of reimbursement of Table 2. Sanctioned (%) (` crore) 14..1 100. subsequent drawls are made on reimbursement basis. `16. Bank rate has changed from 6 to 9.162 projects involving a loan amount of `20.70%).9 0. Review of Performance (i) Sanctions and Disbursements 2.7 7.15 2011.68 Since the inception of RIDF in 1995-96. These are later on prioritised based on the State Government’s priorities and placed before the PSC for sanction.67 As on 31 March 2012. the the Bank Rate (6%).18 1493.11 127. 2011-12. 6.

command schools. 2. development. Cumulatively.expenditure incurred there against.229 projects were sanctioned since the inception of RIDF involving an amount of ` 1. A significant number of rural infrastructure bridges. the number of projects and amount sanctioned.69 roads. Monitoring of RIDF Projects 2.30.31 crore. rural protection. 4. was ` 70.470.10).72 under The RIDF cumulative stood at deposits and repayments crore and `1. Manipur (96%). Though the primary responsibility of monitoring of RIDF projects vests with State Governments. as on 31 March 2012. respectively (Chart 2. 36 . 2. etc.924 crore.13.42.23 crore respectively. 2. This two-pronged monitoring approach results in better implementation of projects. Maharashtra and Kerala (95%).9. disbursements were made to the tune of `14.65 crore as on 31 March 2012. The HPC chaired by the Chief/ Finance Secretary of the State. An amount of `8. During the year.73 Monitoring of RIDF projects under implementation are imperative for ensuring timely completion and quality of assets being created.71 Taking into account phasing of the projects. Cumulatively.009 crore. NABARD also undertakes monitoring of RIDF projects by exception.62.025. During the year. followed by Goa (106%). A state-wise analysis of ratio of disbursements to the approved phasing of sanctions (Table 2. watershed area management. tranches (RIDF I to XVII).009 crore as on 31 March 2012.012. as on 31 March 2012.30.32 crore was received as deposits from commercial banks. the total amount sanctioned was ` 1.94 projects covered so far related to irrigation. The outstanding loans under RIDF have also been rapidly increasing over the years indicating better implementation of the projects and availability of more infrastructural facilities in rural areas. as various constraints are identified. 42 per cent went to agriculture and related sectors. health. reviewed and sorted out at regular intervals.919. agro-forestry. The total RIDF loan outstanding.860.24 crore was received from state governments towards repayment of RIDF loans during 2011-12. public health. including irrigation and power.70 As per the phasing of projects under various ` 35. education and rural drinking water supply. activity-wise. rural drinking water. 15 per cent to social sector projects like.11. (ii) Deposits/Repayments 2. is presented in Table 2. Tamil Nadu (92%) and Chhattisgarh (91%). Meghalaya (100%). while the share of rural roads and bridges was 31 per cent and 12 per cent. Of the cumulative RIDF loans sanctioned as on 31 March 2012. about 88 per cent of the amount sanctioned (Table 2. Haryana and Uttarakhand (93%).927 crore (inclusive of `759 crore sanctioned and released as refinance under Warehousing facilities to Banks).241. State Governments had a total pool of projects of ` 1. Against this the disbursements aggregated `1.5). citizen information centres.11) reveals that Mizoram topped with 132 per cent. meets quarterly to review the pace of project implementation. flood primary under various tranches (RIDF I to XVII). The High Power Committee (HPC) at State level has proven to be an effective mechanism for monitoring and in ensuring speedy and timely completion of projects. E. an amount of `15.

77 1493.00 I 1 2 3 4 II 1 2 1 2 3 4 5 6 IV 1 2 V 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Irrigation sector Minor Medium Major Micro Irrigation Roads & Bridges Roads Bridges Drinking Water Primary/Middle Schools Public Health S.80 1520.09 13.73 0.03 229.14 0.94 58.11 2781.42 0.40 83.70 438.57 2663.89 3968.Sch/Colleges/Ru.03 0.38 21517.(%) 29.76 10.89 15.44 1078.86 0.80 5808.25 468.03 0.68 1195.70 273.15 3505.91 1405.63 7675.05 428.08 9.69 8.60 0.05 0.13 2.00 204.9: Activity-wise Cumulative Sanctions (As on 31 March 2012) No.00 201.78 120.Know.93 2105.31 61522.00 302.00 585.00 4.00 247.01 0.15 0.78 1924.00 412. 2717 2691 15 10 1 7154 6294 860 3311 303 0 126 338 20 2524 5 0 5 4975 0 304 31 178 77 23 14 105 0 0 0 8 0 664 1 0 0 0 70 2382 0 0 1118 18162 Cumulative (I-XVII) Amount 5686.10 1680.84 0.24 15164.79 0.42 16756.Centre/E-Vikas Kendras Rural Industrial Estates/Centres Comprehensive Infrastructure Warehousing/Rural Godowns Grand Total III Social Sector 37 .00 1493.98 1.44 1321.04 24.29 0.01 0.83 324.73 725.00 127.18 2.15 0.73 2032. 2.19 1393.26 127.19 1033.14 20923.66 1.25 12625.01 3578.89 460.76 14.65 Ach.31 0.55 126.37 197.62 6.30 0.64 68.10 4.82 20701.00 0.42 11.05 100.51 0.51 0.Table.32 2625.82 142470.54 13227.08 0.94 10.16 0.51 27.35 0.86 0.00 0.72 73.Hvstg.43 43.23 0.43 299.18 31.00 0. Sanctions RIDF XVII No.00 0.07 2.06 1.59 604.33 0.07 49.02 0.00 65.54 5011. CADA Inland Waterways Food Park Seed / Agri / Hoti.09 0.00 0.79 1.04 116. farms Cold Storage Animal Husbandry Rubber Plantation Meat Process Riverine Fisheries Rural Library Citizen Information Centres Vill.99 0. 237137 234463 322 313 2039 101932 86372 15560 88698 10887 19986 12904 17474 3258 24189 766 687 79 33694 5633 2382 2420 683 2633 1623 165 4034 29 1 5 1544 7 7071 22 12 297 41 98 3621 8 249 1118 462229 Amount 42586.12 No.56 44766.00 0.00 41.00 0.Service Centre Pay & Use Toilets Anganwadi Centres Power Sector System Improvement Mini Hydel Other Agriculture Soil conservation Flood protection Watershed Development Drainage Forest Development Rural Market/Yard/Godown Fishing harbour/jetties Rain W.68 2273.68 17.97 3707.28 1.44 720.93 1.94 0.

mid-term appraisal both technical and economic. monitoring and evaluation. (iii) ensuring compliance to the approved design and quality parameters and (iv) identifying new investment opportunities. With a view to overcoming this limitation. 5. (ii) high sunk cost. project design. preparing detailed project reports (DPRs). (vi) sector is sensitive to local social. four Regional Business Meets were organised by NABARD in four major regions during 2011-12. area survey. During the year.10: Allocations. 48 regional awareness workshops have been carried out by Regional Offices for State Government officials of Finance and other implementing Deparments. (ii) avoiding cost overruns. designated officers from the Head Office and Regional Offices at the state level and the DDMs at the district level undertake regular field visits to monitor the progress of projects. Training and capacity building is thus central to the implementation of RIDF. objectives of (i) facilitating timely physical completion of the projects. Governments the project G. Capacity Building Support 2. other project implementing agencies and user groups/ agencies. (iii) a large proportion of the cost to be irrevocably committed upfront before the project becomes operative. (iv) long gestation periods.74 NABARD undertakes monitoring with the RIDF because of their weak implementing apparatus. quality testing. political and cultural environment and policy changes and (vii) the services produced/ generated non tradable. Economic/Social Benefits of RIDF Projects 2.75 RIDF projects involve several processes such as project identification. The excess services generated 38 F. etc. With a view to ensuring smooth implementation of projects. (v) returns slow to pass on. Similarly. Total 10000 12000 14000 14000 16000 1600 02000 84000 18500 152500 10377 12596 14723 15638 18202 19207 2253 * 92996 18500 161729 10377 12594 14674 9390 11000 2271 970 * 61276 18500 130009 8368 9982 10738 9459 7747 3809 1118 * 51221 18500 113924 81 79 73 101 70 168 115 * 84 100 88 50000 50233 Phased 50233 Disbursed 44203 % Utilised 88 *inclusive of `759 crore sanctioned and released as Refinance under Warehousing Facilities to Banks 2. Sanctions and Disbursements (As on 31 March 2012) Tranche Allocation Cumulative Amount (` in crore) Sanctioned Closed Tranches (I to XI ) Ongoing Tranches XII XIII XIV XV XVI XVII Warehousing Sub-total Bharat Nirman G. Major observations/ issues were being taken up with the implementing Department the pace of and departments State quality of as also the for Finance improving execution.76 The rural infrastructure projects have their own special features like (i) large capital requirement. Various constraints in implementation of RIDF could be overcome through training and capacity building of officials/staff involved directly/indirectly in the implementation of RIDF. Monitoring of RIDF projects is carried out through desk review based on periodic returns and field visits.Table 2.499 projects were monitored through field visits. Infrastructure deficient States have comparatively lower off-take of .

Pradesh 3537 Jammu & Kashmir 4108 Punjab 5129 Rajasthan 9729 Uttar Pradesh 11999 Uttarakhand 2929 North Zone 40958 Chhatisgarh Madhya.51 24228. B. States No. generating employment and increasing farmers’ income.) Rural Market Yards/Godowns (MTs) Gross Domestic Product (`Crore) Recurring Employment (No. 1 2 3 4 5 6 Irrigation potential (lakh ha. Hydel Power Generation (MW) System Improvements to minimize T & D Losses (lakh units/ year) 161730 212. Others (lakh mandays) 7 Power Sector A.12 & 2.60 C. Particulars No.of jobs) Non Recurring Employment: A. Health Centres (lakh) Primary & Secondary Schools (lakh) 615. health and drinking water supply.76 41098.83 22315 cannot be stored or exported and deficiency in service cannot be bridged by imports barring certain exceptions. 2. There is a felt need for development of rural infrastructure for increasing the productivity and 39 8 Social Sector (People /Students benefited) A. enhancing the productivity of crops and livestock. B. (vi) improvements in quality of life through facilities in education.44 Additional Benefits 204.11: Utilisation Percentage of RIDF (I TO XVII) (As on 31 March 2012) (` Crore) Sl. Haryana 3528 Himachal.83 100. Grand Total 1939 10248 12187 6011 3905 7059 8526 25501 758 2335 329 601 387 709 1070 476 6666 142471 18500 759 Table 2. (v) improved connectivity to villages and marketing centres. Cumulative Economic and social benefits generated as on 31 March 2012 is presented in Table 2.13.Table 2.Pradesh Central Zone Bihar Jharkhand Odisha West Bengal East Zone Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Tripura Sikkim North-East & Sikkim RIDF Total Bharat Nirman Warehousing Ref.06 1250.12: Cumulative Economic and social benefits (As on 31 March 2012) SI.) Rural Roads (kms. B.07 354344 796899 325270 24580 8543283 C. etc. (iv) contribution to the economic wealth of the State economy.77 By financing incomplete agriculture development projects.) Rural Bridges (mts. (ii) creation of additional irrigation potential. Irrigation (lakh mandays) Rural Roads and Rural Bridges (lakh mandays) 30097. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Andhra Pradesh Karnataka Kerala Tamil Nadu Puducherry South Zone Goa Gujarat Maharashtra West Zone Sanctions 14358 7173 4572 9829 380 36312 449 10902 9495 20846 Phasing 12424 5885 2894 7992 180 29375 356 8852 6673 15881 2462 2671 3381 4278 7481 10253 1867 32392 1562 8284 9846 4375 2725 5130 6179 18409 711 1743 109 399 196 532 823 332 4847 110750 18500 759 130009 Drawn Utilisation (%) 10014 4980 2751 7353 133 25231 376 7947 6336 14659 2284 2312 2982 3810 6227 8930 1740 28285 1418 6354 7771 3064 2374 4143 5247 14828 616 1477 105 400 258 338 471 225 3890 94665 18500 759 113924 81 85 95 92 74 86 106 90 95 92 93 87 88 89 83 87 93 87 91 77 79 70 87 81 85 81 87 85 96 100 132 64 57 68 80 85 100 100 88 efficiency of agriculture in the form of improving the credit absorbing capacity. Rural Drinking Water Supply (lakh) . the RIDF gives rise to significant potential benefits such as (i) unlocking of sunk investment already made by the State Governments. (iii) generation of additional employment for the rural people. This would make a direct attack on minimising the incidence of rural poverty.

State Irri (ha) 1 2 3 4 5 6 7 8 9 Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Goa Gujarat Haryana Himachal Pradesh 2383278 0 317317 617591 352200 68601 1257981 957912 109716 133787 73571 472951 244362 1332453 655034 19550 147782 2990 179826 838038 375349 511556 421644 134947 360034 88725 4939634 243075 3166925 20406829 Potential Bridges (m) 48321 2600 55127 28227 31603 1410 4346 2969 19164 15000 68043 41886 30659 43274 54143 0 7427 283 10683 74009 327 9593 2905 5353 58809 30331 49458 16188 84762 796899 Roads (km) 31871 1010 836 4453 4567 258 20124 2512 8376 11082 8334 36948 4244 14905 24506 0 1986 693 2153 5744 275 10017 51071 3798 35425 1436 26610 9904 31206 354344 2670 0 348 702 475 45 1210 1835 398 190 210 1121 501 3610 1435 29 15 3 16 1777 1 756 738 343 319 23 4175 175 1461 24580 Value Prodn. RIDF Implementation: Deficiencies 2.78 As compared with the closed tranches (I-XI). quite a few 40 deficiencies have been observed in implementation of RIDF. (` crore) Recurring Employment (Nos. However. The ability of the State Governments to raise resources is restricted by . the RIDF fund under ongoing tranches are more judiously distributed across states. Lakhs of projects in irrigation. and other vital sectors are being financed from RIDF. rural connectivity. However. The State-wise targets for RIDF sanctions and disbursements were set more rationally. the demand for which always surpasses its supply. There is also more balanced investment across the sectors.79 RIDF is a substantial and cost effective source of fund for the State Governments for investment in rural infrastructure.13: State-wise Expected Benefits under RIDF (As on 31 March 2012) No. in transparent and participatory manner. with a larger share going to the less developed and NE States. there is no long-term and assured fund flow for RIDF. (Lakh Mandays) Irri.Table 2. 2. 5383 0 84 341 849 97 1574 735 660 237 303 1708 367 3392 3127 20 234 12 305 1897 352 714 1268 36 594 97 2564 305 2844 30098 RR& RB 5545 233 882 1306 496 158 990 413 640 1359 1167 2868 779 1703 2354 0 403 65 498 2580 55 965 2760 312 3930 516 2198 1196 4727 41099 Others 3378 64 220 615 42 8 1091 196 321 197 544 946 463 493 193 147 73 23 279 277 121 1268 2560 371 1642 929 1608 229 5930 24228 10 Jammu & Kashmir 11 Jharkhand 12 Karnataka 13 Kerala 14 Madhya Pradesh 15 Maharashtra 16 Manipur 17 Meghalaya 18 Mizoram 19 Nagaland 20 Odisha 21 Puducherry 22 Punjab 23 Rajasthan 24 Sikkim 25 Tamil Nadu 26 Tripura 27 Uttar Pradesh 28 Uttarakhand 29 West Bengal Total H.) 1953055 0 102400 231766 69622 5288 1321098 167267 415157 97849 90742 123784 79863 1063279 270236 8808 3706 1976 4107 441162 1110 179092 98671 609 281594 380 730755 27500 772409 8543283 Non-recurring Emp.

The availability of funds is largely contingent upon the borrowing limit under article 293(3) of the Constitution. indicating better implementation of the projects. For timely completion of RIDF project.. many new steps were 2.82 Despite lakhs of projects in irrigation. The State Governments are and sanction adds up to inordinate delay in the normally able to ground the projects only in the postmonsoon period. State Governments need to maintain a ‘shelf of projects’. and other vital sectors being financed under RIDF. entails the participation of many State Govt. NABARD also introduced a I. Departments. view as an impediment in the smooth implementation and financing of RIDF projects. the State Governments have to match their funds with the phasing of the project so as to implement the project within the prescribed timeframe.81 RIDF directly contributes to creation of initiated for the quick grounding of RIDF projects. Tamil Nadu and Puducherry. I. Refinance from NABARD was made available at an interest of 8 per cent for a . Inadequate planning at the grass root level and mid-term change of priorities has been found to hamper the grounding of projects. Receipt of Administrative Governments for Approvals each (AA) has from been State made project mandatory before submission of projects to NABARD for sanction. The outstanding loans under RIDF have rapidly increased in the past five years.1) would attract and make feasible larger investments under RIDF. it is felt that the gigantic gap in rural 41 scheme for providing refinance to banks. total sanctions under the scheme. agriculture and rural connectivity projects. As on 31 March 2012. physical infrastructure and capital formation in rural areas. based on the recommendations of the PSC. However. to actual submission of RIDF State Governments and their appraisal year. 20 per cent of RIDF allocation has been specifically allocated for social sector projects. Karnataka. to four State Governments viz. thereby virtually losing the first year of the project.80 The RIDF. against loans extended by them to private entities and the agencies owned/assisted by government. Once an RIDF project is sanctioned. stood at ` 1493. infrastructure organisational cannot be bridged NABARD by is the State at Governments due to their limited resources and structure. The time lags in announcement of RIDF tranche in the Union Budget in February and projects by process each allocation of the bank-wise funds by RBI. Government of India (GoI) had made a dedicated allocation of `2000 crore for financing warehousing under the RIDF. many State Governments. Warehousing 2. The small investments made under RIPF (Box 2. 2. 2. in the order of priority. rural connectivity. Action has also been initiated for on-line/web based monitoring of RIDF projects. The State Governments therefore need to earmark adequate funds in their Budgets and their borrowing plans for completing the RIDF projects. Pune for development of on-line software funded by RIPF. 2. for creation of warehousing infrastructure.83 During 2011-12.84 In the Union Budget 2011-12.the borrowing limit imposed upon it under article 293(3) of Constitution. Looking Ahead 2.82 crore. As projects in the social sector are accorded less priority as compared to irrigation. the staff of various State Government Departments need to be adequately trained in handling techno-financial appraisals of projects under RIDF. This. each drawal from the RIDF has a shorter repayment period of 7 years.85 In addition. Bihar. NABARD is in the process of forming partnerships with private entities for bringing private sector competence and funds into the realm of rural infrastructure through a separate window called NIDA. with its diversified projects. Further. looking leveraging private resources by implementing specific projects under the public-private participation (PPP) model. with two years moratorium. Consultations/discussions have been in progress with the Centre for Development of Telematics (C-DACs).

ii. four exposure visit projects by senior and middle level State Government officials from Himachal Pradesh. conduct of evaluation and other potential mapping studies and surveys as also period of 7 years (including a moratorium of 2 years). as per the repayment schedule prescribed by the financing bank. Lucknow and another on “Irrigation Projects supported under RIDF in Karnataka” to Centre for Multi-Disciplinary Research (CMDR).29 crore and `7.e. The cumulative sanction under the fund was ` 40. The Fund was established to address many of the constraints faced by the State Governments in the implementation of RIDF projects such as inadequate planning and poor technofinancial appraisal of projects.000 crore stood at `2.1: Rural Infrastructure Promotion Fund (RIPF) NABARD set up a Fund titled the Rural Infrastructure Promotion Fund (RIPF) in 2011 with a corpus of `25 crore for augmenting the skill sets and technical know-how of personnel engaged in creation of rural infrastructure. low cost. effective from 01 September 2011.252. Producer’s Organisation Development Fund 2. evaluation studies and creation of experimental projects. ii) Direct lending to CCBs for short term multi. The implementation of the revival package for Co-operative Banks as per Vaidyanathan Committee recommendations has enabled CCBs to raise financial resources 42 from sources other than the SCB.Box 2.88 NABARD has been traditionally providing refinance support to Co-operative Banks through SCBs.89 crore as on 31 March 2012. one on “Flood Protection Projects in Uttar Pradesh” to Indian Institute of Management (IIM). The RIPF knowledge will provide grant support for conducting sharing workshops. An aggregate amount of `759. i) Producers Organisation by releasing finance to them. exchange of technical experts..purpose credit and (iii) Support to PACS for developing into multi-service centre (iv) Core Banking Solutions for co-operative banks and (v) Setting up of NABARD Infrastructure Development Assistance (NIDA) to provide credit support for funding of rural infrastructure projects. who repay their loans. has received 15 proposals pertaining to exposure visits. respectively with an assistance of `32. Odisha. The small investments made under RIPF would thus attract and make feasible larger investments under RIDF. One check dam project has also been sanctioned as an experimental infrastructure project in Andhra Pradesh. Similarly. national/ international creation of experimental infrastructure projects by Gram Panchayats (GPs). along with interest. Two evaluation studies.07 crore was sanctioned and disbursed to banks.87 In order to support and finance Producers NABARD set up the “Producers Organisations.75 crore. NABARD is supporting. The Fund. out of which 8 proposals amounting `0. Direct Lending to CCBs 2. NABARD will also provide financial incentive to those borrowers. .04 crore.56 crore have been sanctioned as on 31 March 2012. improper monitoring and evaluation. Farmers’ Clubs/ FC Federations and NGOs and villages under VDPs. exposure visits for senior level bank/State functionaries. 13 projects were sanctioned to Producers Organisations and 70 projects to PACS.86 As part of the new initiatives and expansion of its development and promotional roles. i. Andhra Pradesh and Assam have been sanctioned. The RIPF also aims at creation of critical. respectively. During the year. Organisations Development Fund” with an initial corpus of `50 crore. inexperienced Departmental staff engaged in the implementation of the project etc. With this the total sanctions against the allocation of `2. i. New Business Initiatives 2. SHGs/SHG Federations. Dharward have been sanctioned. The guiding principle for the operation of RIPF will be to solely support the programmes/ activities that are carried out for promotion of rural infrastructure. last-mile rural infrastructure that would benefit the village community at large and would form the basis for larger infrastructure projects under RIDF.

switch. ‘A’ & ‘B’ category CCBs. etc. Assistance under PODF is available to SCBs/CCBs/PACS for this purpose. 2012 the major projects sanctioned under NIDA were: Communication Technology. LAN.e. administrative unit. The banks are thus using the computing facility as a service on a monthly payment basis. NABARD has engaged TCS and WIPRO for implementation of the project on ASP Model (Box 2. iii. regular maintenance and support of related hardware and software and data migration support.2).). etc) basis. Karnataka. and the cutting edge ever advancing Technology v. As on 31 March 2012. 2. At the end of March 31. The product is being offered to financially strong i.335 PACS have been developed as Multi-service Centres so far through various interventions from NABARD. NABARD also extends project management and advisory support to the DCCB during roll-out of the product. printers.74 crore was disbursed. an initiative has been taken to develop PACS as Multi service Centres. The final payment structure is a monthly fee.92 NIDA is a new line of credit support for funding of rural infrastructure projects. In order to enable PACS to provide more services to their members and generate income for themselves. The CBS vendor will be responsible for developing and customising the CBS and other application software.89 PACS being registered cooperative societies have been providing credit and other services to its members. In this model. NABARD has designed a Short Term Multipurpose Credit Product for financing the CCBs directly.2: Application Service Provider (ASP) Model of CBS In ASP model. Gujarat. the cooperative banks would be responsible for setting up the infrastructure facilities within the branch. As on 31 March. It provides the banking customers with the right products at the right time through the right channels 24 hours a day. 7 days a week through a multi location. Chhattisgarh. and its regular maintenance. It has been observed that PACS are generally meeting only the credit requirements of its members. NABARD Infrastructure Development Assistance 2.90 With changes in banking scenario and to remain competitive in the market. the bank doesn’t have to go in for heavy initial investment as in the case with ownership model thus making it a more viable option for small banks like the DCCBs. setting up and maintaining the Data Centre/ Disaster Recovery centres and the network connection from banks to the Data Centre/Disaster Recovery centres including user training. Haryana.91 It is expected that the complete roll-out in all the 162 banks will be over by 31 December 2012. branch servers. Developing PACS into Multi-service Centres 2. iv. The assistance under NIDA is available on flexible interest terms with longer repayment period not exceeding 15 years (2-3 years repayment holiday). In addition. it is imperative for Co-operative banks to implement the Core Banking Solutions (CBS). `1. Maharashtra. 43 . 2012. 2. Madhya Pradesh & Tamil Nadu (being implemented by TCS). NIDA will fund State owned institutions/ corporations both on-budget as well as off-budget for creation of rural infrastructure outside the ambit of RIDF borrowing. 162 DCCBs across 10 states viz . HO and other service outlets (PCs. Bihar. This will enable PACS to provide ancillary services to their members and diversify its activities.547 crore of loans was sanctioned to 26 DCCBs of which ` 937. largest banking Information CBS is the meeting point of the services segments.Accordingly. Punjab and Uttar Pradesh (being implemented by WIPRO) are covered under CBS project. training establishment. Core Banking Solutions for Co-operative Banks 2. UPS. to be paid by the bank directly to the vendor on per month per service outlet (branch. multi branch network. Box 2.

VII. viz. The new business initiatives thus. Two Lift irrigation project to Krishna Bhagya Jala Nigam Ltd. involving term loan of `16. building up institutions and arrangements based on principles of aggregation are essential. V.I. II.64 crore of which `3.85 crore and disbursement of ` 422. Participating in these markets poses challenges. 44 . 2. The Solar Panels cover on the canal may reduce the evaporative loss of water.000 ha of dry land in Bagalkot district of Karnataka. This provides a potential for utilising the canal area for setting up solar power plants.39 Warehousing Corporation. it is inevitable that small operators will have to compete in the markets that demand much more in terms of quality and food safety. involving a term loan of ` 140 crore. Three projects involving term loan of ` 354.97 crore. These would include cooperatives as well as producers’ organisations and its variants. To take advantage of these. Karnataka involving a term loan of ` 244. are in tune with organisational strategy of ‘business for development’. but they also bring more opportunities. The project aims at improving storage infrastructure for foodgrains. IV.75 crore. Project for establishment of substation and its associated transmission systems at Hura in Purulia Dist in West Bengal to West Bengal State Electricity Transmission Company involving a term loan of `92. Two solar capacity power of 2 plants MW to project Gujarat with State crore to Tamil Nadu Generation and Distribution Company (TANGEDCO) for rehabilitation of power distribution network damaged by Cyclone THANE. involving a term loan assistance of `42. bringing cooperatives on a higher technology platform of CBS to create a level playing field to compete with the other banks for business and growth.93 With the base of agriculture becoming Electricity Corporation Ltd.56 crore was disbursed. The sites identified for the projects are unique. An amount of `29 crore has been disbursed. Ananthapur and Karimnagar districs of Andhra associated transmission systems on three line. The project is expected to irrigate about 40. engaging with the PACS to convert them in to multi service centers are all such initiatives which eventually have huge development potential and which are inclusive in nature. Manubollu-Sullurpet Minpur-Jogipet lines to Transmission Corporation of Andhra Pradesh Ltd. the Nizamsagar-Banswada. Pradesh Project for establishment of five substations in and augmentation/modification of other and increasingly smaller (nearly 83 % of holdings are small who operate 41% of the area). One of the sites is the area used for filling fly ash from the Thermal Power Plants and the other Canal area of Narmada Project. The new business initiatives need to be viewed in the above context.08 crore. Solar Power project with five MW power DCCBs.90 crore. The project aims at supplying quality power to the agriculture sector and rural areas. lakh Project for construction of Warehouses of 1.06 MT storage capacity to Karnataka State VI. generation 2. The project aims at supplying quality power to the agriculture sector specially and rural areas in general. generation capacity was sanctioned to Gujarat Power Corporation Ltd.94 Creation of new line of financial support for Medak. The cumulative sanctions under NIDA during the year 2011-12 was `890. III.

and Integrated Watershed Development 45 Programme (IWDP) in Bihar.6 The Participatory Watershed Development programme aims at consolidating isolated.78 million ha. Farm Sector A. where discussions on bridging of infrastructural gaps for facilitating greater flow of credit to the rural economy were held with the officials of the State Government departments. As on 31 March 2012 it has a total corpus of `1. implemented in association with the Banks for the development of agriculture and rural sectors are also discussed. The PLPs serve as an important tool for banks in their credit planning excercise. critical infrastructure gaps to be filled and linkage support to be provided by various State Government Departments. Gujarat and Rajasthan. monitoring and developmental and promotional activities in these districts. Prime Minister’s package for distressed districts in four States. During the year.4 NABARD has 405 District Development Manager (DDM) offices across the country which focuses on credit planning. B. District Level Offices 3.5 NABARD promotes participatory watershed development projects with the aim of enhancing the productivity and profitability of rainfed agriculture in a sustainable manner. stakeholders. The Fund was augmented over the years by way of interest differential earned under RIDF and interest accrued on the unutilised portion of the Fund. Potential Linked Credit Plans 3. Credit Planning A.03 crore. In addition. The sector-wise credit projections captured in the PLPs were utilised for arriving at the credit target for agriculture and allied sector in particular and priority sector as a whole for the year. PLPs were prepared for the 625 districts in India. Programmes of the Government of India and the State Governments.2 NABARD prepares Potential Linked Credit Plans (PLPs) for all districts in the country every year. The SFP presents a comprehensive picture of the potential available in various sectors of the rural economy. Credit Seminars were also organised by NABARD in all States/UTs. The PLP outline the credit potential in agriculture. successful watershed programmes under a national programme.3 State Focus Papers (SFP) were prepared by the Regional Offices of NABARD for all the States and Union Territories (UTs) based on the district-level PLPs. Programme under Watershed Development Fund (WDF) in 15 States. It anchors four watershed development programmes in the country covering over 1. 2012-13. allied sectors and rural development projects in the district.III Development and Promotional Initiatives NABARD’s development initiatives – on-going and new. 3. State Focus Paper 3.806. . The programme is financed by the Watershed Development Fund established in NABARD in 19992000 with an initial corpus of ` 200 crore. financial institutions and other C. diverse in coverage and inclusive in nature – are presented in this chapter. These programmes are: Indo-German Watershed Participatory Development Watershed Programme Development (IGWDP) in Maharashtra. Andhra Pradesh. supported by the Planning Commission. 98 districts are tagged to specific DDM districts. Watershed Development 3.

stood at `51. taking the cumulative number of such projects to 620.99 crore. The project will be implemented through good working MACS. wheat (34%) and kharif paddy (32%) in Shettihadapnur.83 crore. cropped area (Rabi) increased from 157 ha.3. wastelands reduced from 85 ha.19 crore was released. (B) Mid Course Impact Evaluation Study of Four IGWDP watersheds in Andhra Pradesh • • • There was employment generation of 73. 3. sanctioned. taking the number of such projects to 316. fallow land reduced by 485 ha. This arrangement is being pilot tested by way of a project implemented in three districts of Andhra Pradesh (Chitoor. of watershed annually over two years in each of these districts.14 crore and Box 3. cotton+redgram (153%). the real income change was highest (48%) in Shettihadapnur watershed followed by Kakatiya (40%).9 The watershed projects are entirely grant based in non-distressed districts. i. Crops which registered higher productivity levels were Cotton (32%) and vegetables (29%) in Lakshmipur • The extent of migration has reduced in all the four watersheds. • Between 2002 and 2009. The cumulative disbursements under these components were ` 556. Water storage capacity stood at 35.10 NABARD will be routing its support for implemented in 31 distressed districts of Andhra Pradesh. and (182 % increase). maize (38%) and red gram (35%) in Shivarvenkatpur.13 crore and `5. 46 . Karnataka. Another Pilot Project for financing watershed plus’ activities in three watersheds of Chitoor district was sanctioned to ABFL with a loan component of ` 99 lakh which will be utilised for on-lending to Rahstriya Seva Samiti (RASS) for implementation of watershed plus activities.7 During the year. • Among the watersheds.8 The Prime Minister’s Relief package is 3. NABFINS and ADFT. covering an area of 5. enhancement of livelihood and agriculture productivity under its watershed development programme through its subsidiaries – ABFL. Kerala and Maharashtra for developing 15. maize (11%) and kharif paddy (31%) in Kakatiya watershed and cotton (34%). The level of reduction was the highest in Kakatiya (52%) followed by Shettihadapnur (35%). to 443 ha to 35 ha. orchards from 88 ha.76 crore. a `17. Rangareddy and Adilabad) through ABFL. Under the participatory watershed sum of development programme for Bihar component of Rashtriya Sam Vikas Yojana (RSVY).1. a cumulative amount of `429. As on 31 March 2012. The project sanctioned under WDF. Chickballapur District in Karnataka watershed. Lakshmipur (15%) and Shivarvenkatpur (13%). with a total commitment (loan and grant component) of `239. 3. 41 watershed projects were ` 41. as on 31 March 2012. The Impact Evaluation findings of watershed projects is given in Box 3. in 15 States. cotton (38%). respectively. based in distressed districts while the assistance is grant-cum-loan loans worth During the year. There was no decline in the water table.023 crore.000 ha.. Sixty one projects graduated to Full Implementation Phase (FIP). grant assistance of `201.74 crore was disbursed during the year.1: Impact Evaluation Findings of Watershed Projects (A) Kannamangala Watershed.44 lakh ha.114 CuM.217 person days. `2 crore for each district. The cumulative area under this programme is 9.. has a financial requirement of ` 6 crore. to 149 ha.29 crore were disbursed under these watershed projects. The cumulative disbursement.e. Lakshmipur (35%) and Shivarvenkatpur (22%).29 lakh ha. with financial commitment of `1..

B. Village Development Programme
3.11 The Village Development Programme (VDP) envisages identification of development needs in consultation with the village community and delivering an integrated package of promotional and developmental initiatives for holistic development of the village. Under Phase-I of the Programme, 877 villages spread across 25 States were identified through 493 Project Implementing Agencies (PIA) including Non Governmental Organisations (NGO), Farmers’ Club and Krishi Vigyan Kendras (KVK). The programme was completed in 631 villages and is under different stages of implementation in 178 villages. Implementation of 68 VDPs were discontinued/ withdrawn due to withdrawal by PIAs, non involvement of village community, etc. The programme has been upscaled with the launch of Phase II from April 2010 which envisages coverage of 1,540 villages. Under this phase, the programme is being implemented through 457 PIAs in 1,026 villages spread across 26 States. 3.12 Outcome of the Village Development

Conduct of awareness and skill development programmes on crop specific package of practices, Integrated Nutrient Management (INM)/Integrated Pest Management (IPM), organic farming, use of certified seeds, nursery development, promotion of SRI, etc., led to considerable knowledge-building in the village community.

Promotion of allied sector livelihood activities such as Dairy, Poultry, Fisheries and Non-Farm sector activities such as cloth painting, embroidery, carpentry, promoting SHGs, petty and led business, nurturing Clubs to Kirana shops was JLGs, These achieved by conducting workshops, MEDPs and activity-based and VDCs. of

Farmers’

interventions

generation

part-time

livelihood activities in the agriculture and allied sectors, formation/revival of Dairy Co-operatives and Milk Collection of rural Centres, marketing Setting outlets up and establishment

establishment of market linkages in most villages. • Hundred per cent financial inclusion was brought about by the opening of No-Frills accounts, issuing to all farmers, purveying of investment credit and issuing of GCC. In all VDP villages, crop loans, investment credit for allied and non-farm sector activities and attendant financial services improved considerably. • Training Programmes and workshops held under VDP led to greater convergence of Line Departments, of KVKs subject and matter scientists also RFAs. • 80 to 90 per cent of women folk of the villages were empowered through various programmes. Migration of villagers became almost non-existent from the pre-development stage of 20 to 30 per cent. Agriculture specialists,

Programme (VDP) – Phase I : VDP interventions in several villages have visibly impacted the lives and living standards of the village community across the country. Success stories include, Kapurtunga Village in Raigarh district, Chhattisgarh; Irlapadu Village in Nellore district, Andhra Pradesh and Kalliganur Village in Gadag district, Karnataka. The salient interventions and their impact in the villages are as follows : • Comprehensive soil testing and crop-specific

package of practices, covering 100 to 150 farm fields in each village led to judicious and needbased changes use in of fertilizers, crop diversification, improved seed cropping pattern,

Community-based

organisations such as NGOs, SHGs, FCs, JLGs as

replacement, use of low cost compost/ vermicompost. This in turn resulted in reduction in cost of cultivation, varying from 10 per cent to 20 per cent. Productivity in majority of the villages for lead crops improved between 20 per cent to 40 per cent and income enhancement ranged from 30 per cent to 50 per cent.

47

Convergence of Gram Panchayats with district administration under VDP led to infrastructure development by way of development of internal roads, solar lighting, drainage channels, maintenance of farm ponds, rain water harvesting structures, construction of drinking water tanks, village school, community buildings and sanitation units.

C. Tribal Development Fund
3.13 The integrated by tribal development through has the project Tribal implemented NABARD

Development Fund (TDF)

“wadi” (a small

orchard) as the core component. The TDF programme, in its 7th year of implementation, has enhanced livelihood opportunities for tribal communities, covering traditional tribal livelihoods (such as bee keeping, sericulture), organic wadis and mixed wadis (perennial fruit crops + creeper vegetables + spices) (Box: 3.2). During the year, financial assistance of ` 290.63 crore ( `274.11 crore as grant and `16.52 crore as loan) was sanctioned for 98 projects benefiting 72,419 tribal families in 16 states. The cumulative sanction as on 31 March 2012 was `1,208.23 crore, covering 3,22,912 families in 415 projects across 26 States/UTs. During the year, the Fund disbursement was `162.02 crore ( `156.98 crore as grant and ` 5.04 crore as loan). The cumulative disbursement under the fund as on 31

Health camps, literacy campaigns and educational activities, sanitation and drinking water led to improvement in living standards and awareness levels of the village community.

VDP also led to integration of various NABARD programmes, like WDF, TDF, NFS- SDPs, MCIDSHGs, JLGs, MEDPs, FIPF, FTTF and FCP in the villages which ensured optimum utilisation of resources, making NABARD a household name in these villages.

Box 3.2: New model in wadi

• A new Wadi model was introduced by NABARD in
Alirajpur district of Madhya Pradesh to enable farmers to earn from the very first year of project implementation. The conventional wadi model, based on cultivation of perennial fruit crops start generating income for the farmers from the fourth year onwards.

shade-crops such as turmeric grown under the manadap, generate an income of `25,000-30,000 in OctoberNovember. Thus, an income of `35,000-45,000 is obtained from 0.25 acre of land within a few months of the commencement of the wadi project.

• The wadi (perennial fruit crop) planting commences in
June-August period. The wadi families also benefit from vegetable/ pulses inter-cropping, from which they are able to realise an income of `25,000- 30,000. Therefore, in the new wadi model, farmers generate an income of `50,000 – 60,000 in the very first year of project implementation.

• The new Wadi model combines the ‘mandap’ system of
vegetable cultivation along with cultivation of perennial fruit crops. The mandap system supports two types of vegetables-creeper vegetables grown along the bamboo supports and GI canopy of the mandap and crops such as turmeric and ginger that are grown in the shade of the mandap. The mandap occupies 0.25 acre in a one acre plot, while 0.75 acre is used for the wadi plantation. The mandaps are erected by March and creeper vegetables grown in summer. The creeper vegetables generate an income of `10,000-15,000 in the summer months. The

• Some farmers have even realised an income of `1.5 lakhs
in the first and second years by adopting innovative approaches and improved varieties. The new wadi approach has helped farmers to achieve financial stability in a short period and has successfully checked migration to a great extent.

48

March 2012 was

` 368.85 crore (` 360.07 and grant

sanctioned under FIPF in 14 States with financial assistance of `56.53 crore as grant. Major projects sanctioned during the year cover various activities including the following:

and `8.78 crore as loan).

D. Farm Innovation and Promotion Fund
3.14 (FIPF) The Farm Innovation and Promotion Fund provides resource support to innovative

Pilot project for mobile enabled Pallavan m-Kisan Credit Card, Villupuram district, Tamil Nadu by Pallavan Grama Bank (Box 3.3)

ventures in the Farm Sector. The Fund, created from the operating profits of NABARD in 2004-05, with an initial corpus of ` 5 crore, has grown to `50.00 crore as on 31 March 2012. During 2011-12, 41 projects were

Pilot project for promotion of seed business ventures by Small farmers through seed village plus approach in Assam, Bihar, Chhattisgarh,

Box 3.3: Pilot Project on Mobile Kisan Credit Card The mobile enabled Kisan Credit Card (m-KCC), was launched as a pilot project accounts with the in Villupuram district in Tamil a RRB Nadu on 2nd October 2011. It covers farmers having KCC Pallavan Grama Bank (PGB), sponsored by the Indian Bank. The project enables farmers to transact on their loan accounts with PGB by using their mobile phones as an interface. To make this possible, the mobile phones of farmers and vendors/ BCs with the PGB provider. The transactions are performed are registered through a and with Paymate, the technical service and ‘PIN’, using an KCC. The share of benefit accrued due to reduction in transaction cost indicated that 69 per cent benefit accrued to the farmer followed by bank at 25 per cent and input dealer at 6 per cent. Reduction in transaction cost to the system as a whole, in percentage terms, was maximum for farmers (1.44 %), followed by Banks (0.41%) and input dealer (0.10%). 2. Technology enabled card would ensure greater

penetration of KCC and better financial inclusion. 3. Returns per m-KCC (`679) are more than the costs per m-KCC (`157) indicating viability and sustainability of the project. The Study reported the following benefits to stakeholders: Farmer:

combination of secured SIM card

Interactive Voice Recording (IVR)/ SMS system. Thus, the farmers can avoid visiting the branch to transact on their loan accounts. The farmers are also given the benefit of using the mobile interface for entering into cash-less transactions with agriculture input dealers. For this purpose, the agriculture input dealers have to open an account with the bank and have their mobiles registered with Paymate. The farmer can place orders over their mobiles with the input dealers and have their loan accounts debited for the amount. The project will cover 5,000 KCC account holders in 3 years. A total of 5,946 farmers have been registered with m-KCC. A quick study of the m-KCC project that : 1. The number of transactions ranged between 2-5 under mobile enabled KCC vis-a-vis single withdrawal under undertaken by the

• Savings due to reduced number of trips to the bank • Reduced interest burden as the farmer was drawing funds
as and when required, instead of withdrawing the entire loan in a lump sum during his visit to the bank

• Reduction in price or cash discount on input purchase
Bank :

• Better end use of the kind component of credit • Savings due to fewer transactions in cash • New merchant business
Input dealers :

Indian Institute of Banking & Finance (IIBF), Mumbai reveals

• Instant payment • Increase in business • Less credit risk

49

expansion of Navara rice in Palakkad district of 50 . • for betelvine plantations. • Project on Permaculture. Tamil Nadu. completed. 164 projects have been sanctioned as on financial assistance 31 March 2012. Gujarat. Technology Pittoragarh Champawat.59 crore. Uttar Pradesh. Farmers’ Technology Transfer Fund 3. • Innovations in Summer Groundnut production. Chhattisgarh. Rajasthan.15 Cumulatively. Some of the major proposals sanctioned are as follows: • Special Relief package for arecanut/ vanilla support of `68. Theni Bio-efficacy studies on Nemato Gro in • Introduction of Adoptable. • Lac Rearing on Palash Trees in Korba district. • Popularising T & D Cross Breed of Pigs in Ramgarh district of Jharkhand. 72 projects with `3. Thiruvarur district. • Seed Kerala. Puri district. • Pilot project for Augmenting Farm Productivity in Balasore district in Odisha. multiplication and area • Sustainable Sugarcane Initiative (SSI) in 10 districts of Tamil Nadu. on E. The Fund has been augmented to `100 crore from 1 April 2010. • Production. Karur district. Odisha.69 crore have been of technologies. Madhya Pradesh and • Sustainable Water Management through integrated performance management of pumping systems in Pune district of Maharashtra. Uttarakhand. • Farmers’ in Training/Awareness Madhya Programmes Pradesh. procurement. The disbursement during the year was `44. purification.16 The ‘Farmers’ Technology Transfer Fund’ (FTTF) was set up in 2008 with a corpus of ` 25 crore sourced from the operating profits of NABARD for facilitating farmers for adoption of appropriate Commodity Exchange at Gramin Suvidha Kendra Maharashtra.Odisha. Karnataka. Some of the major completed projects are: • Sustainable upscaling of weather based districts. 395 proposals were sanctioned under FTTF in 29 States with financial assistance of `20. 3.45 crore. Rajasthan and Uttar Pradesh. Tiruchirapalli district. • Development of Lac Production System using High Density Ber Plantations in Ranchi district of Jharkhand. • Dissemination Tamil Nadu. with financial Of this. Gujarat. crop insurance in Ahmedabad. Tamil Nadu.59 crore as grant. • Augmenting sea weed production in Chilka. Low cost innovative technology district. Tamil Nadu. distribution and processing of organic milk in Solan district of • Standardisation Farming of Fisheries in based Integrated and Himachal Pradesh. Jharkhand. During the year. Kannauj district. Tamil Nadu. Anand and Patan farmers in Uttara Kannada district of Karnataka. of Veterinary herbal healing techniques for livestock in Sivaganga district of • Participatory Research and implementation of technology on protected cultivation of Capsicum and Paprika.

97 lakh under FTTF as on 31 March 2012. • • Seed village programme in various States.17 Farmers’ Clubs are grassroots level informal forums of farmers.43%) regions. Odisha. As on date. Agency-wise. As on 31 March 2012. Maharashtra.. in the areas of Technology Transfer.104).18 A NABARD initiated pilot project for companies farmer produces Andhra Pradesh. Five Farmers’ Training and Rural Development Centre (FTRDC) have been provided grant assistance aggregating to ` 57.654 connections have been provided to farmers / Farmers’ Clubs as on 31 March 2012. market prices. Arunachal Pradesh. while NER accounted for (2. • IKSL-NABARD Mobile Phone Centric Initiative for Empowerment of Farmers in 9 districts of Gujarat.) Western (16. The target of forming one lakh Farmers Club (FC) by the end of XI plan period was achived with the formation of 25. Uttar Pradesh.01. NABARD sees Farmers’ Clubs as change agents at the grassroots level. NGOs promoted maximum number of clubs (15. • Agriculture Knowledge Management System in Goalpara district of Assam.52%) and Northern (12.103) and SAUs/KVKs/other agencies (807) during the year 2011-12. 279 FCs are functioning as Business Facilitators/Business Correspondents. NABARD has entered into an MoU with the Mahatma Phule Krishi Vidyapeeth. They have imparted training to 5. Credit Counselling and Market Advocacy is underway. taking the total number of clubs to 1.109 farmers through 593 training programmes. followed by co-operative banks (4. Support to Farmers’ Club for online marketing of their produce in Goa. Kerala. Uttarakhand and West Bengal. followed by the Central Sikkim. 3. the RBI has permitted banks to engage FCs as Business Facilitators (BF). FCs have also promoted and credit linked 268 Joint Liability Group (JLG). These Clubs facilitate farmers in accessing credit. for preparation of CDs/VCDs/ Brochures/Pamphlets on agriculture and allied activities for use by farmers. Vegetable Seed production in New Delhi. As on date.951 as on 31 March 2012. CBs (2.243 new Farmers’ Clubs. Tamil Nadu. • Commercial Floriculture in Champawat district of Uttarakhand.75%).• Development producer of institutions of for promoting in (24.642 SHGs have been credit linked.65 lakh in 15 States viz. 31 projects have been sanctioned with a grant assistance of ` 62. • Zero Budget Natural Farming in Alappuzha district of Kerala. RRBs (2. Meghalaya. Haryana. • Developing Agricultural Entrepreneurs in development of specialised cadres of farmers from amongst the members of Farmers’ Clubs. extension services. crop advisory services through SMS on mobile phones and 36. Karnataka.48%.99%). So far 443 farmers have been trained as Master Farmers. formation of Farmers Scientists Forum arranging training and exposure visits for 51 . F.232 FCs in 3 States were registered as legal entities.83%).359). Farmers Clubs have also been acting as Self Help Promoting Institutions (SHPI) and 761 FCs have promoted 17. Southern (18.870). 50 Federations of Farmers Clubs are operating in 14 States while 8. Farmers’ Clubs are provided with information on weather. Punjab. as part of an ICT initiative. Jharkhand. technology and markets. • Integrated Fish Farming in Ranchi district. Farmers’ Club Programme 3. Rahuri in Maharashtra. The region-wise distribution of clubs indicated that the Eastern region had the highest share (24. (MPKV). Zero tillage in Wheat cultivation in Godda district of Jharkhand. As FCs coordinate with banks for ensuring credit flow and forging better bank-borrower relationship. Bihar.321 Self Help Group (SHG) of which 9.

000 families. GoI released `25. the agency’s request for extension of the project implementation period upto March 2013 has been recommended to the Government. etc. During the year. The focus of the programme is “wadi”.93 crore and disbursed an amount of ` 130. facilitator for channelising and utilisation of funds Against a total financial outlay of `27. However. During 2011-12. Adivasi Development Programme in Gujarat and Maharashtra 3. with components of soil conservation. Reddy Foundation are the implementing agencies for the two components. The project period of both the projects is over. of Agriculture self-sufficiency thereby Gram Swarozgar Yojana (SGSY) by GoI in 2006-07 for implementation in Sultanpur and Raebareli districts of Uttar Pradesh. women/landless family development and health.732.59 crore was disbursed as grant assistance as against ` 1.39 crore.19 The ‘Scheme for Capacity Building for Adoption of Technology’ (CAT) uses training and exposure visits as a means of sensitising farmers on adoption of new/ innovative methods of farming.90 crore for Raebareli.51 crore and `1.25 crore. sustainable agriculture practices.663 families ii.22 under NABARD is the co-coordinating agency and CDP.24 The KfW-NABARD-V-Adivasi Development Programme in Gujarat is implemented in Valsad and Dangs districts through BAIF since 1994-95. Cattle Development Projects (CDP) 3. Special Project on Livelihood Based Development 3. H.5 acre was brought 52 .22 crore.44 crore.37 crore. 16 District Dairy Farmers’ Associations have been formed in Uttar Pradesh and 13 in Bihar. an amount of `3. the project holder while BAIF and Dr.adoption of technology.197 farmers were arranged in collaboration with select research institutes.000 Below Poverty Line (BPL) families under Multi-activity Approach for Poverty Alleviation (MAAPA) and 15. The areas covered were precision farming. pisciculture.23 NABARD received `96. fodder development. `0.77 crore received from GIZ under UPNRM and RFI Programme (Table 3.000 financially very needy youth under Demand Driven Skill Development (DDSD) through Livelihood Advancement Business School (LABS) in the two districts. promoting NABARD’s Farmers’ Clubs through KVKs and other activities leading to agriculture and rural development. 339 exposure visits of 9. project supervision and monitoring. multiplication. Externally Aided Projects 3. respectively.1). The cost of the project is `14. drum seeding. in order to take the activities already initiated to a logical conclusion. KVKs and SAUs. vegetable cattle seed management.82 crore as grant/loan assistance during the year under the KfW supported externally aided projects.22 The Special Project on Livelihood Based Development was sanctioned under Swarnajayanti from 162 villages. taking the cumulative disbursement to ` 9. While 100 Cattle Development Centres have been established in each State. The project aims at covering 8. i.72 crore were released to Sultanpur and Raebareli districts. water resources development.97 crore for Sultanpur and ` 14. A total area of 12. Capacity Building for Adoption of Technology 3. NABARD is ensuring quality of seeds and effecting cost saving of seeds. a. The programme has covered 13. hi-tech agriculture.49 crore and `9. Government Projects 3.20 NABARD continued to implement/coordinate the following area specific projects of the Government of India (GoI). Further. (a small orchard of mango and cashew nut). implementing the Seed Village concept together for with the State in Department seeds. I. as against a target of 10. G. organic farming. with utilisation at `25. tissue culture banana. with an outlay of `67.

Technical Component (TC)xx. 53 . Indo-German Watershed Development Programme in Maharashtra (Phase III) v.18 8037.90 9510.45 32.87 573. Indo-German Watershed Development Programme in Andhra Pradesh iv.5 12. FC Loan FC Grant 16 Sept 2009 16 Sept 2009 16 Sept 2009 30 Dec 2014 30 Dec 2014 FC Loan : 15. ii.09 combined figures given at item (i) above 291. an amount of `130.89 116.25 3964.70 vi. Grant for Accompanying Measures FC Grant : 1.01 @ 323.63 2 June 2000 31 Dec 2011 352.50 33. V-Adivasi Development Programme in Gujarat* ii.57 1.92 lakh pertaining to service charge of FC loan claimed inadvertently from KfW during 2009-10.20 645. Name of the Project No.31 iii.40 125.53 1493.4 31 Dec 2014 FC Grant for Accompanying Measures : 3.87 441.78 FC .29 Grant) (+ 1. 2010-11 and 2011-12 and booked under FC grant.51 16. KfW-NABARD i.34 51. KfW-Sewa Bank Project 7 Dec 2006 31 Dec 2016 11.Self Employed Women’s Association @: An amount of `66. Hence the balance is shown as negative.00 6275.57 12473. 14.77 27 Aug 2005 31 Dec 2012 19. @@: Includes only the disbursement made under FC grant and the service charges thereon.61 17 Feb 2006 31 Dec 2015 9.03 iii.92 523.15 Amount received by NABARD During 2011-12 Cumm.12 8994.Assistance from GIZ i ii GIZ – UPNRM – TC GIZ-RFIP 26 Jul 2010 1 Jan 2009 31 Dec 2014 31 Dec 2013 62.Financial Cooperation SEWA .57 463.1: Externally Aided on-going Projects (As on 31 March 2012) (` Lakh) Sl. The service charges for FC loans included during the previous years have been removed from the cumulative FC disbursement figures.69 1373.05 10519.91 lakh was received from KfW during 2011-12.00 620.09 @@ 311.00 8. The cumulative receipt of FC grant also reflects this transaction.11 697. IX-Adivasi Development Programme in Maharashtra 23 Dec 1994 31 Dec 2011 13.51 296. KfW-Umbrella Programme for Natural Resources Management (UPNRM) i.Table 3. Upto 31.5 (of which 0.23 546.00 4.03.00 1461.21 669.12 8980.83 1255.57 2.42 4099.00 7928.64 11295.50 2024. Adivasi Development Programme in Gujarat (Phase II)* viii. Indo-German Watershed Development Programme in Gujarat 15 July 2002 31 Dec 2013 8.20 143.84 1188.26 (-)64.03.27 929.32 584.5 Suppl. upto 31.1 is FC component) 3.88 1243.93 303.94 2611.79 1363.48 3363. was adjusted to Accompanying Measures (as advised by KfW).96 28 March 2006 28 June 2002 31 Dec 2014 31 Dec 2013 7. Effective from Closing date External assistance (million) Disbursements made by NABARD During 2011-12 Cumm.01 294. Indo-German Watershed Development Programme in Rajasthan vii.

3. The Adivasi Development Programme in Maharashtra was implemented in Nashik and Thane Districts since 2000 with KfW assistance of 14. Pratapgarh and Udaipur). covering an area of 11.916 ha. During the year. Thirty Five projects covering an area of 35. taking the cumulative disbursement to `112. SHG federations have been constituted in two watersheds and provided support for on-lending to women SHGs formed in the project villages.60 crore) under the IGWDP for watershed development in five districts of Rajasthan (Banswara. At present.26 In addition to Maharashtra. During the year.73 crore was disbursed taking the cumulative release to `39.12 crore was disbursed.2 million (approx. Chittorgarh. the IGWDP has of euro 11 million (about `61. KfW.16. are being implemented under this programme. an international consulting agency. Karimnagar. covering 95 watersheds on 1. `51.5 acre of wadi established and 253 wadi tukadis (group of 8-10 wadi holders) formed. 3. Germany had committed grant assistance under the bi-lateral aid agreement between the Indian German Governments. KfW has sanctioned a grant assistance of 7 million (approx. grant assistance of `26.02 lakh ha.848 families have been covered by the project as against a target of 13. been extended to three States. by programme implemented Village Committee (VWC) in association with NGOs for regeneration of natural resources and Phase I (19902000) and Phase II (2001-2007) of the programme were successfully completed..52 crore). 4 terminated and 100 projects are in Full Implementation Phase (FIP) stage. The programme was closed on 31st December. 114 watershed projects have been sanctioned since 2005.21 crore was disbursed taking the cumulative release to `14.64 crore. was associated with the programme till December 2011 to support the capacity building issues of projects of IGWDP-AP. Phase II (2006-2014) is under implementation. Germany has committed a grant assistance of euro 8. grant assistance of `13. IGWDP-Maharashtra. 36 projects of euro have 2 been million completed (about `11 and two were terminated. Dungarpur.32 million ( ` 82.07. Gujarat and Rajasthan 3. the Phase III (20052012) of the programme is under implementation.under wadi. Panchmahal.28 KfW. 10 projects have been completed. RODECO. are being implemented under this programme.27 The IGWDP in Gujarat envisages b. one project in Feasibilty Study Report (FSR) stage and 6 projects are in Capacity Building Phase (CBP) stage.96 crore.700 families in these districts. Under this Phase.293. grant assistance of `6. viz. which was started in January 2005. KfW has approved an additional amount crore) towards Complementary Measures Programme for capacity building of stakeholders. Of these. Andhra Pradesh. 13.000 families and wadi area coverage reached 12. Phase I of the programme stands closed on 31 March 2011.000 acres. 5789.745 ha. Of these. ` 38. in 18 districts of Maharashtra. Sabarkantha and Vadodara) with a commitment of Euro 9.000 acre. 3. Under Phase III (2005-12). for which. as on 31 March 2012.5 acres as against a target of 10. 5. projects covering an area of 4. 54 . During the year. 2011.66 crore) under IGWDP Medak and in Andhra Warangal). Thirty three projects covering an area of 37.15 crore).93 crore. against the target of 10.69 million (about `48. Andhra Pradesh. Of these. introduced is in an Maharashtra integrated Watershed Programme and rehabilitation of watersheds in four districts (Dahod. of which 20 projects are in FIP.436 ha.22 crore).25 The Indo-German Watershed Development (IGWDP). are being implemented under this programme. Gujarat and Rajasthan.922 families have been identified. Pradesh Thirty for eight rehabilitation of watersheds in four districts (Adilabad. 26 projects are in FIP.884 ha. A Programme Management Unit (PMU) has been set up at Dahod to oversee the implementation from close quarters with the help of three consultants. covering 4.

During the year.89 Implementing agency: NGO.03 Cumulative Loan Grant Total 124. implementing RO of NABARD and Managing Director-SEWA Bank.86 3. respectively.30 The Umbrella Programme on Natural Resource Management (UPNRM) is a loan-cum-grant based Indo-German programme being implemented since 2007-08 by NABARD in collaboration with KfW and GIZ.90 million 8. FC grant and AM received from KfW were 15. Maharashtra. The project intends to transfer the lending operations of Rural District Associations (RDA). MFI. The project commenced its operations in July 2007. Uttar Pradesh.28 Sanctioned Cumulative Loan Grant Total 199. Karnataka. Producers’ Companies. of Projects Amount During the year During the year Cumulative 40 104 Loan Grant Total 53.514 crore from GIZ under Technical Component (TC) during the year. 3 projects in CBP stage and 3 projects were terminated. Table 3. The cumulative amount disbursed under this project to SEWA Bank upto 31 March 2012 stood at `1. Private Limited Companies and Co-operatives16 States covered under UPNRM (Andhra Pradesh.03 212.57 lakh.20 crore was disbursed taking the cumulative release to `14. It is a shift from (i) project.101 million as FC grant Co-operation (FC) loan. The total fund envisaged under the programme is ( and 19. Bihar.181 million as Financial 0.95 Amount Disbursed During the year Loan Grant Total 62.9 projects in FSR stage. It aims to boost rural livelihoods by supporting community-managed sustainable natural resource management projects. Umbrella Programme on Natural Resource Management 3. d. December 2009 and is expected to be completed by December 2013. 0.29 The objective of “KfW-NABARD-SEWA Bank Capitalization of Rural Financial Intermediaries” is to improve the access of the rural and urban poor women to micro credit in Ahmedabad and Gandhinagar Districts of Gujarat State by establishing a rural department in SEWA Bank. Tamil Nadu. 3.255.SEWA Bank Capitalization of Rural Financial Intermediaries” 3.17 66. opening Extension Counters (ECs) and enabling outreach of credit to rural and urban clientele.258 million and 1. Jharkhand. Madhya Pradesh. The Board of Management of the project consist of representative of NABARD-Head Office.50 million from GIZ c. NABARD serves as the Financial Channelising Agency. Gujarat. Kerala. implementation phase of the project The full began in 3.32 57. “KfW-NABARD . 30.4. Arunachal Pradesh and Rajasthan) and one UT (A & N Islands) 55 . which presently function like federated entities in two districts.83 7. 0.31 and An amount of 6. A Programme Management Unit (PMU) has been set up at Udaipur to oversee the implementation from close quarters with the help of four consultants. West Bengal. While SEWA Bank is the Project Executing Agency.103 million. grant assistance of `6.496 million as Accompanying Measures (AM) were received from KfW and `0.00 million.40 million from KfW.92 13. Odisha. The cumulative FC Loan.2: Progress under UPNRM (As on 31 March 2012) ` crore No.93 crore. The progress under UPNRM is given in the Table 3.06 131. A success story of UPNRM proposal is detailed in the Box 3.based to programme-based funding and (ii) grant-based to loan-based funding.00 million from NABARD). Himachal Pradesh. Uttarakhand.2.88 3.

800 cases and loan sanctioned for 11. The scheme envisages extending refinance support at a concessional rate of 7. Jharkhand. The impact was substantial and milk procurement increased from 233 to 500 per cent in the 4 BMCUs. the District Rural Development Agency (DRDA) in association with two private dairies BMCUs were manned by established Bulk Milk Chilling Units (BMCUs) in 82 places. Chhattisgarh. viz. was fixed at 50 per cent of the target allocated for Commercial Banks and 25 per cent for RRBs and Co-operative Banks. and mainstreamed. a small initiative under UPNRM was accepted by the banking community as a profitable portfolio. prepared a detailed project report (based on the successful UPNRM project model) covering 65 BMCUs and presented the same to the bankers forum. include (a) Water Resources Development (b) Land Development (c) Farm Equipment and (d) Seed Production units.5 per cent per annum (p. NABARD also extended support to the banks for related interventions like forming and linking JLGs. organising sensitisation meets for the branch officials of implementing banks. capacity building for farmers and organising animal health camps in their area of operation. around 13. Four of the two Mandal Mahila Samakhya (MMS). The Dairies paid the MMS chilling charges of `0. Thus.4: UPNRM Projects – A success story of Kamadhenu project in Chittoor district To give a fillip to the milk procurement and marketing activities at Chittoor. only around 1/3rd of the installed capacity of the BMCUs were utilised. Mandal level SHG Federations (2 each) that collected milk from women dairy farmers at the grass roots level. The financial assistance sanctioned was `104.8 crore. azolla cultivation.Box 3. NABARD in consultation with the DRDA (Chittoor) prepared UPNRM projects for these two MMS in the district. Accordingly.68 lakh as AM) to both the projects. 56 . Odisha. coinciding with the centenary celebrations of the district. Bihar. grant support to the MMS for providing veterinary services. training and capacity building needs of entrepreneurs identified under the scheme.46 lakh as loan and `11.723 units with credit flow estimated at `73.2 lakh litres. Assam. Minimum level for the year 2011-12.912 crore. the Hon’ble Chief Minister of Andhra Pradesh directed the District administration to increase milk procurement by the MMS to around 5 lakh litres per day from the existing 2. benefitting a larger rural population. With a view to ensuring adequate credit flow for the selected activities. Under this scheme. In September 2011. The bankers welcomed these proposals and process is on in 111 branches of 11 banks in the district.65 per litre of milk. Policy and Promotional Interventions-Financing Agricultural Investments in the Eastern Region – Concessional Refinance Support 3. As on 31 March 2012. DDM.14 lakh (`92. 3.500 SB accounts were opened.32 With a view to facilitating institutional credit flow for key investments that have a direct bearing on enhancing crop productivity in the Eastern Region. the minimum lending level against the targets was prescribed for banks to become eligible for the concessional refinance. The interventions covered in the UPNRM project included purchase of quality animals by the women members along with requisite investments for raising green fodder. West Bengal & Uttar Pradesh (28 districts). the DRDA (Chittoor) in consultation with NABARD. loan documentation completed for more than 12.33 The total lending target of the banks for the financial year 2011-12 was `3. Three of the 4 BMCUs which were to be closed or merged had completely turned around and are presently running in profits. The project was officially launched on 21 September 2011. The key activities qualifying for concessional refinance support under the scheme.a) and covers seven states in the Eastern Region. J.. motorised chaff cutters in villages. On account of low milk availability from the members of MMS. NABARD introduced a concessional refinance support scheme for this region.

covering 97. one district has been selected in each of the identified 11 states for the implementation of the captioned project.58 crore and disbursement of ` 6. from 2012-13 to 2014-15. 175 units have been sanctioned with a Total Financial Outlay of `25. The project aims at strengthening the support systems available to farmers in respect of major crops and activities in the identified districts by involving public and private sector organisations on a Public Private Participation (PPP) mode and dovetailing resources of various Government agencies. including a grant component of `48. c. Bihar (Bhojpur). and project interventions including agriculture in extension.37 System of Rice Intensification (SRI) is a combination of simple agronomic and management practices that improves productivity.800 ha. Accordingly..e. as a comprehensive production and productivity • • ICT medium.. A project of 150 Model Units covering 28. interventions animal husbandry and financial inclusion.34 This project has been designed by NABARD.09 crore has been achieved.000 farmers. effecting reduction in cost of production and facilitating value addition. 3. addition The in credit.86 crore.08 crore to be supported under the FIPF. System of Rice Intensification 3. post-harvest marketing components livelihood in management. Rajasthan (Bikaner). marketing of produce. Jharkhand (Deoghar). crop management. Haryana (Sirsa). Madhya Pradesh (Shahdol). The project is being implemented using the cluster approach. NABARD has prepared project reports keeping in view the following important factors: b. for a period of three years i. Chhattisgarh (Bilaspur).000 farmer in 2. interlinked components of farming as an economic activity.503 ha. As on 31 March 2012.36 This was launched by NABARD in 2009-10 with the objective of increasing the yield of lead crops by adopting sustainable agricultural practices. Cumulatively. Karnataka (Belgaum).60 crore have been disbursed. Maharashtra (Yavatmal). viz. Pilot Project on Augmenting Productivity of Lead Crops 3. • Lead crops covering 80 per cent or more cropped area and one or two major allied activities • • The existing backward and forward linkages Problem constraints in increasing the production and productivity • • Availability of partners and their roles Models of extension that would work for the district 57 . so as to improve the standard of living of the rural farming community.19 crore and an amount of ` 15..211. Pilot Project for Augmenting Farm Productivity in Select Districts 3. was launched in June 2010 in 13 identified States for implementation over a period of three years. and 84. post production facilities including marketing linkages & storage Areas of convergence along with the financial implications for a period of three years. viz. technology. Uttar Pradesh (Azamgarh) and West Bengal (Nadia). package for augmenting by addressing farm all at the behest of the Ministry of Finance. Each cluster comprises five villages and 4-6 such clusters per state have been selected for implementation of the project.68 crore. Odisha (Balasore). 50 projects covering 250 villages were launched with a financial commitment of `21.380 villages across 12 States. New Initiatives a. agricultural inputs. with total financial outlay of `25. The project was formally launched on 24 April 2012.35 The Pilot Project at Balasore District in Odisha has been sanctioned with a total financial outlay of `3. a holistic comprise development value manner.K. The project is implemented in an area of 22.

taking the cumulative number to 483.94 crore.90 crore has been sanctioned for 383 rural haats across 23 States till now. over 800 students have been trained through this model with a 100 per cent placement rate. NABARD has been supporting Rural Entrepreneurship Development Programmes (REDP) and Skill Development Programmes (SDP) since the early 1990s. an organisation created by IIT alumni.5 per cent p. NABARD and “PanIIT Alumni Reach For India (PARFI)”.38 Fund NABARD constituted the Rural Innovation (RIF) with a corpus of `140 crore in Cumulative grant assistance of ` 16.3. grant support of ` 3. An amount of `10. Box 3. The mother needs to be a member of SHG/JLG so that social and peer pressure would ensure timely repayment of loan. further on-lends to NGO’s who select poor rural youth and finance them with a vocational education loan at 8. Strengthening of Rural Haats 3. the cumulative commitment made until 31 March 2012 has reached `57. collaboration with the Swiss Agency for Development and Cooperation (SDC) Farm. which.852 REDPs/ SDPs with an amount of ` 13.a. With these projects. potential to promote livelihood opportunities in rural areas.000 youth over 3 years. NABARD provides Revolving fund-assistance to PARFI.711 REDPs/SDPs with grant support of `96. cooks. • NABARD has sanctioned `4. NABARD launched the ‘Scheme for Strengthening of Rural Haats’ in 1999. As on 31 March 2012. NABARD-SDC Rural Innovation Fund 3. Rural Entrepreneurship Development Programmes and Skill Development Programmes 3. 9. Of this 150 projects have been completed and 67 projects are in the advance stages of implementation.39 As rural ‘haats’ (local markets) play an important role in rural economy. welders.71 crore was sanctioned to 76 rural haats during 2011-12. have come together to pilot a loan-based approach to vocational training of blue-collar entry level workers like masons. 108 new innovative projects were sanctioned support of `7. During Employment Training Institutes) for incurring capital recurring NABARD had started a vocational training on a pilot basis with collaboration of “PanIIT Alumni Reach for India” (PARFI). • The initial experience shows that this model can be upscaled. During the year. The Fund experiments in sectors with supports innovative.45 crore have been supported which are estimated to have covered around 6. technicians and drivers.93 lakh unemployed rural youth. an organisation created by IIT alumni (Box 3. 58 . Under the scheme.76 crore towards training of 8.Rural Non-Farm Sector A. 27. risk mitigating micro-Finance C. As of January 2012.24 crore has been disbursed during the year for 483 projects taking the cumulative disbursements to `43.23 crore. Cumulatively.5: Vocational training through micro-loan: PanIIT-NABARD model • In a first-of-its-kind-intervention. Non-Farm and in 2005-06. Development & Self Employment Training Institute)/ institutions/R-SETIs expenditure.5).2011). includes RUDSETI and/or support type extended to RUDSETI (Rural the This (Rural Self year. The loan for the training is guaranteed by the mother of the trainee.22 crore (up from `49.40 For generating self-employment and wage employment opportunities in rural areas.09 crore were sanctioned. B.28 crore as on 31.

During 2011-12.445. NGOs.D. As on 31 March 2012.95 lakh was disbursed during the year towards implementation programme. payment through credit card was permitted to enhance the quantum of sales. During 2011-12. especially artisans.. the Financial Inclusion investments in meeting the cost of technology Fund (FIF) and the Financial Inclusion Technology Fund (FITF) were set up in NABARD during 2007-08. 7 food processing clusters. All the clusters are in different participatory clusters were approved. In order to directly linking rural producers with markets. etc. A sum of `331.42 As a part of the programme. These include 57 handloom clusters. The corpus of each fund is `500 crore. Programme on Rural Industrialisation (NPRI) from 1999-2000. the contribution to these Funds stood at `79. Odisha and Madhya Pradesh. during 2011-12. stages of Blacksmiths and 2 NPRI clusters.32 crore (FIF) and ` 130. Swarojgar Credit Card Scheme 3. 5 capacity building programmes/ workshops were organised for the participants from banks.06 lakh involving credit limit of Financial Inclusion 3. wherein 130 artisans and 61 agencies from 28 States participated in a 15-day long exhibition. Marketing/Other initiatives 3. 120 clusters across 110 districts in 22 States have been approved. 2 each of Leather.43 NABARD recognises the importance of developing marketing opportunities for the highly unorganised rural producers. grant-cum-loan F. etc. 3.32 crore.479 SCCs investment small/ and micro having credit limit of `495. 7 Rural Tourism. for the first time. 59 . This year. 07 each of Bee Keeping.84 crore. As many as 23 clusters are being supported in the North Eastern region alone and large numbers of clusters are being developed in backward States like Chhattisgarh. in keeping with the recommendations of the Rangarajan Committee on Financial Inclusion for providing timely and adequate credit to vulnerable groups at an affordable cost.45 Two dedicated funds. During the year. As on 31 March 2012.81 crore were issued for requirements including venture like assistance was sanctioned during the year amounting to `120. For smooth implementation and monitoring of the initiative. 43 handicraft clusters. hassle free and cost effective manner. NABARD continued to co-sponsor the Saras Mahalaxmi Fair at Mumbai. The cumulative number of SCCs issued was 13. facilitating working hassle-free capital credit for of 94. 537 marketing events/ exhibitions/melas across the country were supported with grant assistance of ` 2. NABARD supports their participation in Melas/ Exhibitions.44 Swarojgar Credit Card (SCC) Scheme was introduced in September 2003 for providing adequate and timely credit to small artisans. `5. The ‘Financial Inclusion Fund’ (FIF) supports developmental and promotional interventions leading to financial inclusion and ‘Financial Inclusion Technology Fund’ (FITF) supports adoption aimed at promoting financial inclusion.. handloom weavers. to be contributed by the GoI. other micro-entrepreneurs. government departments.49 crore (FITF). of the Cluster Development entrepreneurs. The Advisory Board met thrice during the year.41 NABARD has been implementing the Cluster Programme under the National Development E. Jharkhand. RBI and NABARD in the ratio of 40:40:20 in a phased manner over five years. and one implementation.35 lakh. from the banking system in a flexible. The Funds are managed by NABARD as per the directions given by the Advisory Board for FIF and FITF. SHGs. Cluster Development 3.

The following policy initiatives were taken Financial Inclusion by RRBs through BC model using card based ICT Solution – ASP Model for Financial Inclusion (ICT) Support from FITF . Ranchi. Uttar Pradesh.28 crore was provided from FIF to Doordarshan for producing and directing a half an hour financial literacy programme in Hindi. West Bengal. As on 31 March 2012. Engaging Farmers’ Club as BF by RRBs 3. Meghalaya. Bihar.51 Micro Pension Model – Support to Invest India Micro Pension Services NABARD extended support to the extent of to Invest India Micro weak RRBs for CBS installation.000 per programme. grant assistance of `107. Maharashtra.48 Application of ICT Solution in BC/BF models by RRBs The projects involve application of ICT based solutions by RRBs in their BC model so as to enable them to cover all the villages in their jurisdiction.. vi.47 Support for CBS for weak RRBs Under the scheme of support to 28 identified v. Odisha and Gujarat for setting up iv. Bhopal. ii. support is being provided from FIF for establishment of FLCCs by Lead Banks in 256 excluded districts and 10 disturbed districts. Uttar FLCCs. `10.. II. The project aims at covering 40.395 persons. The programme has already been telecasted by the Bhopal. Jaipur.74 crore have been released covering 16.A. viz.NABARD will reimburse expenditure financial literacy awareness camps in each of the 2000+ villages allotted to them from the Financial Inclusion Fund (FIF) at the applicable rate (100% or 80% of actual cost depending upon the State) subject to a maximum of `10. B. Policy initiatives 3.52 Financial of support RRBs in is being extended having by NABARD for Farmers’ Clubs acting as Business Facilitators villages 2000+ population in their command areas. against which assistance was sanctioned to 26 RRBs for `216. whereas the work is under progress in Lucknow and Raipur Kendras. Jharkhand. 3.It has been decided to support the RRBs implementing ICT through Application Service Provider (ASP) Model. Camps by RRBs .07 crore has been sanctioned to 53 RRBs under FITF as against which disbursements were of the order of `40. Major Projects i.46 I. Establishment of Financial Literacy and Credit Counseling Centre (FLCC) by Lead Banks 3. So far. Madhya Pradesh. Pradesh.000 rural poor under the old-age pension scheme. As on 31 March 60 .52 crore with disbursements amounting to `139. 3. Odisha. Manipur. Financial Literacy through Audio Visual medium – Doordarshan 3. ` 2.54 crore. Assam. Jaipur and Patna Kendras. to be telecast in six centres (DD Kendras of Lucknow. Rajasthan.49 Under the scheme. Raipur and Ranchi).52 crore.50 Grant assistance of `3. 3.71 crore has been sanctioned to Lead Banks in 128 districts of 12 States viz. `1. Patna. proposals were received from 27 RRBs as on 31 March 2012. As on 31 March 2012. Holding of Financial incurred by Literacy RRBs Awareness for holding during the year: iii.25 crore from the FIF Pension Services to pilot test a micro pension model among SHG members in 8 districts of 4 States. Bihar and Tamil Nadu. Support for CBS to weak RRBs from FITF It has been decided to support the identified weak RRBs for CBS implementation through ASP Model III.

01 63. Odisha-Hyderabad/AP intra-state The migration study Maharashtra. The year-wise achievements are given in Table 3. 8 RRBs were sanctioned `43. The study address the issues of improving financial services for domestic migrants by improving delivery channels. the cumulative sanctions under FIF and FITF were ` 114.81 lakh for training of authorised functionaries of well-run SHGs in 6 States.30 4.48 crore respectively and disbursements `36.54 NABARD has sanctioned and released `21. D: Disbursements 61 .08 35.07 297.62 crore and `343.21 54. vii.45 2009-10 S 18. especially through Business Correspondents upgrading payment systems for small value money transfer and strengthening financial institutions for providing adequate remittance facilities as well as other financial services through enhanced financial education. Jharkhand.11 D 9. NABARD-UNDP Collaboration for Financial Inclusion 3. Geographical Information System for financial Inclusion 3.3. The identification of area/ institution for launching the pilot project is in progress.22 2011-12 S 75. E.66 2010-11 S 19.52 D 0.36 17. `46. especially SC and ST. Fund Utilisation 3.3: The progress under FIF & FTTF (As on 31 March 2012) (` in crore) Name of the Fund 2008-09 S FIF FITF Total 1. Table 3.57 NABARD a and Deutsche on Gesellschaft (GIZ) Needs für and Internationale conducted Zusammenarbeit study together viii. Rajasthan and Uttar Pradesh.46 184. when the significant problems of sending money through the formal banking system over long distances . GIZ-NABARD Rural Financial Institutions Programme (RFIP) – Component IV 3. easier and more secure. `2.56 UNDP-NABARD Financial Inclusion Fund was established in NABARD to provide better access to financial products and services for reducing risks and enhancing livelihood opportunities for the poor.55 As on 31 March 2012.46 crore and `184.based MIS for capturing the banking facility. with the purpose of extending financial services in semi-urban and rural areas in their command area.11 120.39 147. Madhya Pradesh.16 220.09 0. Odisha.08 crore sanctioned to 22 RRBs in 12 States from FIF.48 458. D.62 343. respectively.29 Cumulative up to March 2012 S 114.53 Support is available from the FIF to RRBs for engaging “Authorised functionaries of well run SHGs linked to Banks to act as BC / BF”. Chhattisgarh.99 1.44 D 7. concluded sending remittances could be faster. Engaging SHGs as BC/BF by RRBs 3.16 crore. Eastern UP-Mumbai. Rajasthan.96 221. minorities and the displaced.97 lakh had been utilised during 2011-12 for activities conducted by NABARD in the seven States of Bihar.10 D 36. The component IV of the RFIP aims at involving more number of service providers for remittances.2012.67 9. As on 31 March 2012. Remittance Opportunities in India.90 128.03 D 18.71 lakh to National Informatics Centre for development of web-based GIS Application for assessing the reach and extent of banking in India and also development of a web. The study covered four specific and remittance corridors: and Gujarat-Southern remittance that in C.00 101.which migrants and the recipients in India are currently facing is removed.62 S : Sanctions.36 0.22 5.

financial implications and time frame for adoption of AEPS by rural financial institutions. promise to bring the much required transparency. Support to Partner Agencies 3.59 The NABARD SHG-Bank linkage programme.73 (2480. respectively. No. NABARD.95 crore and ` 17.011 # Number 469 (2) 2315 (139) – Amt 8448. UIDAI and NPCI to provide a formal outline to this collaborative effort.38) 7016. training and capacity building of stake holders.08) 6198.F. as a key player in the field of financial inclusion. cost-effective and various micro-finance activities such as formation and linkage of SHGs through SHPIs.30 (1817. as several MFI availed loans from more than one bank#: Figures in parentheses indicate the assistance of SIDBI to MFI 62 .62) Self Help Groups 2011 Number 1196134 (240888) 4786763 (1285714) 7461946 (2022649) Amt 14547.37) 31221.7 crore poor households under the micro-finance programme.62 (3041.4. It will also document and disseminate the benefits. Chairman. `33.49 (2665. RRBs will be targeted in the first phase while CCBs with CBS platform will be covered in the second. Centre of Excellence for Rural Financial Institutions 3.74 (3808. Table 3.61 to NABARD continued to extend grant support RRBs. documentation. Accordingly.30 (2198. earmark a core team of its officers for furthering the outreach and acceptance of Aadhar Payments Bridge (APB) and AEPS (Aadhaar Enabled Payments System) which Micro Finance 3.4: Progress of the Micro-Finance Programme (As on 31 March 2011) (` crore) Sl. As on 31 March 2011. It was desired therein that NABARD.75) 13955.96 (843. NABARD to discuss the ways in which these institutions can collaborate to increase the outreach of financial inclusion.76) – Figures in parentheses indicate the share of SHG covered under SGSY*: Actual Number of MFI provided with bank loans would be lower. Micro-Finance Development and Equity Fund 3.68 crore was grant support for promotional activities and `4.60 The Micro-finance Development and Equity Fund (MFDEF) is being utilised for promotion of B. there were more than 74.31 crore was released of which `28. Particulars 2010 Number 1 2 3 Loans disbursed during the year Loans Outstanding Savings Accounts with Banks 1586822 (267403) 4851356 (1245394) 6953250 (1693910) Amt 14453.20) – 2. capital and soft loan assistance to MFIs. DCCBs and Individual Rural NGOs.00) 28038. in the previous year.58 Head A meeting was held on 16th February.16 (7829.63 crore for CS/RFA to MFIs. studies. 2012 in Office between Shri Nandan Nilenkani. During 2011-12.71 (1292. Chairman.77) 13730. Prakash Bakshi. A. speed and ease of operations into last mile banking.62 lakh savings-linked Self Help Groups (SHG) and more than 47. UIDAI (Unique Identification Authority of India) and Dr. as against `29. etc. An MOU is being signed among NABARD. has proved to be a decentralised the fastest growing microfinance initiative in the world.12) Micro Finance Institutions (MFI)* 2010 Number 779 (88) 1659 (146) – Amt 10728.87 lakh credit-linked SHGs covering 9. livelihood propagation. procedure. The progress of the micro-finance programme is given in Table 3.28 (6251.43 crore. has set up CERFI (Centre of Excellence for Rural Financial Institutions) with its basic responsibilities being propagation of APB and AEPS among rural financial institutions for all kinds of cashless transactions and new KCC operations.

Training and Capacity Building of Stakeholders 3. During the year. adolescent girls through formation of 7. linked. DCCB RRB NGO FC IRV Total 7 3 166 4 1 181 Amt. credit linking and federating of SHG in select districts of UP.5). 36.20 3794.73 million. coverage of training modules.17 crore to 6. an amount of `55. in association with participating banks and implementing NGO.of SHGs 71695 53145 499909 7689 43223 675661 Cumulative Progress Amt.94 crore was sanctioned to various agencies for promoting and credit linking 94. New SHPI were identified even while continuing support to the existing ones. During the year.19 16200. SHG members and trainers. Raebareili.73 million.50 96. now covers seven The districts eight consequent long to the bifurcation assisted of by Sultanpur district (UP) into Sultanpur and CSM Nagar.44 SHG s formed 47515 56070 283007 17356 13105 417053 SHG s linked 31744 36852 181196 9694 6860 266346 63 .16 733. for promoting. Special Initiatives in Backward Region (i) Rajiv Gandhi Mahila Vikas Pariyojana 3.03 5528. NABARD is the Lead Programme Agency for implementing the programme.81 86. NABARD has trained 1.66 lakh.63 NABARD continued to support the Rajiv Gandhi Mahila Vikas Pariyojana (RGMVP). respectively. the Field NGOs have set up 39 Community Service Centres (12 in Bihar and 27 in Uttar Pradesh for the Table 3. The originally implemented including four districts in UP (Bahraich.17 lakh SHGs. Training needs of all the stakeholders are being assessed for the purpose. taking the cumulative assistance sanctioned to `184. 1. released 289.76 lakh groups (Table 3. grant assistance of `37.73 5. 3.5: Grant Assistance Extended to various Partners in SHG-Bank Linkage Programme (As on 31 March 2012) (` lakh) Agency Sanctions during 2011-12 No.Volunteers (IRV) for promoting and nurturing quality SHG.33 No.65 NABARD has engaged the Resource NGO for government officials.59 83.28 crore was released resulting in formation of 4. 857.000 being envisages poor holistic and six Programme in Mid Gangetic Plains” also called Priyadarshini empowerment programme districts women in C.10 4882.38 lakh officials have been trained. In addition. Programme bankers.77 lakh officials of various agencies and cumulatively 28.31 73.58 18417.19 197. As on 31 March 2012.75 0. year Programme International Fund for Agriculture Development (IFAD) and GoI to the extent of US $ 30 million and US $ 2.64 The “Women Empowerment and Livelihood Programme of 1.75 3573.238 Cluster Level Federations and 45 Block Level Federations were (ii) Priyadarshini Project 3.128 SHG were promoted. As on 31 March 2012.62 various Linkage NABARD is continuously imparting training to partners and stakeholders such as of SHG-Bank NGOs. D.of SHGs 4740 3810 85571 61 300 94482 Cumulative Sanctions No. Shravasti and Sultanpur) and two districts in Bihar (Madhubani and Sitamarhi). of which 22.93 No.81 542.200 SHGs. 118. During 2011-12. a special initiative of the Rajiv Gandhi Charitable Trust (RGCT). has a total outlay of US $ 32. The number of SHGs credit linked till March 2012 was 2.614 were credit formed.482 groups. the purpose of capacity building of the Programme Staff and Field NGOs for the implementation of the programme at the grass root level. NABARD in association with GIZ has initiated the process of revising the content. 115 123 3013 811 72 4134 Amt.08.

says that the social and psychological emancipation is even greater than the economic benefits of the alternate professions. These groups were sanctioned `80. 1. Due to lack of awareness on alternative options and resources available.500 per month and also their incomes increase substantially during marriage and festive Gulabi. Pilot Projects SHG . 6.70.68 The project was launched in 2006 in five districts of Tamil Nadu (i) to examine the feasibility of utilising vast network of Post offices in rural areas in Box 3. one group named as “Ekta JLG 1” is engaged in tailoring activity and the other. But she was amazed when bank offered them loans for economic activities.659 SHGs in Uttar Pradesh and 1. Efforts are being made to cover more such women under the JLG in the district.64. Julee – another JLG membersays that earlier they had to borrow from money lenders in case of emergencies but the rate of interest was very high from 76 per cent to 120 per cent per annum. one of the JLG members.363 MEDPs had been conducted for 1. the Resource NGO.292 members on various location-specific farm.691 JLGs. The Field NGOs have formed total 3. Munger for promotion of JLG in eight districts including Munger.000/each for undertaking livelihood activities. “Ekta JLG 2” has opened a shop for selling bangles.6. These JLG members have now started living a life of dignity and self respect. For the purpose of capacity building of Programme Staff.948 participants. an NGO “Panaah Ashram”. they do not have to go to such money lenders who happened to exploit them otherwise too.67 NABARD had launched the Micro-Enterprise Development Programme (MEDP) during 2005-06 for skill upgradation and development of sustainable livelihoods/venturing into micro-enterprises by members of matured SHG. banks disbursed a loan of `946. Moreover.914 MEDPs were conducted for 56.purpose of social mobilisation and formation of SHGs). says that she did not believe earlier that any formal institution from the Government sector would ever come to their world and help them. During the year. non-farm and service sector activities.66 An amount of `36.092. got in touch with Munger branch of BKGB and two JLGs were formed among the sex workers. who also teaches in the school being run for the children of “Red Light” area. Consequently. which was working in the field of education for the children of sex workers of Munger. Now. most of these sex workers find it difficult to come out of this profession. SERP has conducted six Orientation Training Programmes. But there was a ray of hope for some of them in Munger district of Bihar when NABARD sanctioned a project to Bihar Kshetriya Gramin Bank (BKGB). Bihar The dark realities of flesh trade and the unfortunate lives of the sex workers who live an economically and socially excluded and deprived life was no different in case of Munger district of Bihar. Now with the bank loan available to them @11 per cent p.68 crore was sanctioned as grant for promotion of 1.81 crore to 1.29.a. E.Post Office Linkage Programme 3. it augurs well for their next generation too who are happily taking their baby steps towards the mainstreamed developmental process. `2.10 crore for 2.94 lakh JLGs across the country till 31 March 2012. Munger district of Bihar with support from NABARD is given in Box 3. Now each member of the JLG is earning on an average of seasons. Cumulatively.646 JLGs upto 31 March 2012 taking the cumulative loan disbursed to ` 2.6: From “Red Light to a “Ray of light” through JLG in Munger. 64 .500 – `3. (ii) Micro-Enterprise Development Programme 3. The success story of JLGs formed by sex worker in F. including 1.751 SHGs in Bihar. Scaling -up of Micro-Finance Programme: Special Initiatives (i) Financing of Joint Liability Groups 3.410 SHGs during 2011-12. During the year. Geeta – another member of JLG. named.

disbursement of credit to rural poor and (ii) to test the efficacy of Department of Posts (DoP) in providing micro finance services to the rural clients. NABARD sanctioned RFA to the tune of `300.00 lakh for onlending to SHGs on an interest sharing basis. As against the RFA released, `37.12 lakh was outstanding at DoP level as on 31 March 2012. A total of 2,189 SHGs have opened saving accounts, of which 1,259 SHGs have been credit linked by various Post Offices, with cumulative loan disbursed amounting to `3.65 crore as on 31 March 2012. The project was closed on 31 March 2012. The project is also being implemented in Meghalaya with `5.00 lakh sanctioned to Indian Post for on-lending to SHGs in East Khasi Hills district.

(ii) Centre for Micro-finance Research
3.70 The Centre for Micro-finance Research (CMR) established by NABARD in BIRD in 2008 and four sub-centres in Guwahati, Patna, Chennai & Jaipur continued to conduct research on various themes of micro-finance across the country, for bringing out policy initiatives that would improve the design and delivery of various micro-finance products. The CMR brought out two issues of its half-yearly journal “The Micro-finance Review” during the year. Grant assistance of `199.33 lakh was released by NABARD during the year to CMR, taking the cumulative assistance to ` 560.01 lakh. The sub-centres of CMR in Guwahati, Patna, Chennai and Jaipur undertook research on 41 prioritised themes, of which 20 research studies were completed and 14 reports published/uploaded on BIRD’s website for the benefit of all stakeholders.

G. Other Developments
(i) NABARD Financial Services Ltd.
3.69 an The MFI, Karnataka NABARD Agriculture Financial Development Services Ltd., Finance Company Ltd. (KADFC) was restructured into viz., (NABFINS), during 2007, to promote the microfinance Sector. NABARD is the major stakeholder, other share holders being, Government of Karnataka, Canara Bank, Union Bank of India, Federal Bank and Dhanalakshmi Bank. The paid up Share Capital as on 31 March 2012 was `42.08 crore. crore to 6,915 SHGs (BC) through taking the During 2011-12, 67 Business cumulative NABFINS disbursed loans to the extent of `213.58 Correspondents

H. New Developments / Initiatives
a. Re-launching SHG Bank Linkage Programme: SHG-2 Background
3.71 financial Over the years, of the SHG-Bank Linkage poor Programme (BLP) has emerged as a viable model for inclusion hitherto unreached households particularly in rural areas. The Programme has brought in a lot of encouraging and positive features like increase in loan volume to SHGs, definite shift in the loan utilisation pattern of SHG members, gradual increase in income level of SHG members, sound recovery performance of SHG loans, significant reduction in the transaction costs for the banks and the borrowers, etc. However, skewed growth of SHGs in certain regions of the country had narrowed the growth process of the programme. In this background, it was decided to revisit the SHG-BLP for identifying the shortcomings and incorporate suitable changes to give the programme a renewed thrust and direction. The purpose and intent of re-launching the programme named, SHG-2, was to focus on a few issues like creating space for voluntary savings, positioning cash credit as preferred mode of lending,

disbursement to `265.54 crore, to 8,968 groups. Loans to agencies other than SHGs to the extent of `2.30 crore were disbursed during the year taking the cumulative other loans disbursed to ` 5.25 crore. During the year, rate of interest on loans to SHGs was revised upwards from 12.0 per cent to 13.5 per cent per annum on reducing balance. NABFINS follows a client friendly model, with credit disbursements made and repayment collected at the door step of the clients. During the year, it opened 17 district offices NABFINS and appointed 36 BCs taking the number of total offices to 31 and BCs to 67, respectively. the year. 65 availed refinance of ` 200 crore from NABARD during

scope for providing multiple borrowings by SHG members matching with their repaying capacity, creating avenues to meet higher credit requirements for livelihood creation, supporting SHG Federations as non-financial intermediaries, rating and introducing audit of SHGs as part of risk mitigation system, strengthening monitoring mechanisms, etc. A National Colloquium of bankers, senior Government officials, NGOs and thought leaders of micro finance was held at Mumbai on 21 February 2012 to discuss the scope and content of SHG-2. The guidelines of SHG-2 have since been issued by NABARD to the concerned stakeholders.

a banking / business facilitator, tracking, monitoring these groups and also being responsible for loan repayments. To begin with, the scheme is being implemented in 109 selected backward/LWE districts of the country. Some of the salient features of the scheme are given in Box 3.7.

c. Cash credit limit to SHGs
3.73 The GoI communicated its decision of only Cash Credit Limits to SHGs from 17 sanctioning

November 2011 so as to address the issue of delayed / limited or non-approval of repeat loans to SHG, to ensure cost effectiveness to clients and provide greater operational flexibility to SHG clients. The groups in turn, are to extend loans to their members as per the extant guidelines of RBI and NABARD. The SHGs are to ensure payments of interest on monthly basis on the cash credit availed by them. Earlier, the SHGs were being sanctioned term loans by banks depending on the quantum of savings made by the group. The tenure of such loans was upto a period of three years. However, often, the groups tended to prepay such loans leading to a situation where the groups were not sanctioned fresh loans/repeat loans. Therefore, even for their emergent needs these SHGs were depending

b. Scheme for Promotion of Women SHGs in backward districts of India And Left Wing Extremism (LWE) Affected districts of India
3.72 A scheme in association with GoI has been formulated to bring out a viable and self sustainable model for promotion and financing of Women Self Help Groups by involving an anchor NGO in each of the selected backward districts of the country. This project is an attempt at having NGO-SHPI to work not merely as an SHPI for promoting and enabling credit linkage of these groups with banks, but also serving as

Box 3.7: Salient features of Scheme for Promotion of Women SHGs in backward districts of India and Left Wing Extremism Affected districts of India i. The LDM in consultation with the DDM, NABARD and due approval of DLCC in each of the district can identify more than one NGO/support agency, with clear geographical demarcation of areas for implementation of the scheme. ii. The scheme would be implemented primarily through two nodal bank branches, having CBS facility, in each block of the identified districts. iii. The concerned bank branch will enter into a MoU with the identified NGO. iv. The identified NGOs will be eligible for grant assistance of `10,000 per SHG from WSHG Fund. v. All loans to new SHGs promoted will preferably be under the cash credit mode. vi. DDM, NABARD will arrange need based awareness and capacity development programmes for key stakeholders under the project. vii. A Service Charge of 5% per annum on monthly average loan outstanding shall be paid by the bank to the respective NGOs to meet the administrative, transaction and risk cost of the NGOs.

66

on various alternate options like MFIs, etc. The introduction of cash credit is thus aimed at smoothening the consumption & working capital needs of the SHGs during the initial years as well as to a certain extent, in subsequent years. This will offer the following benefits :

The SHGs will be encouraged to save regularly as their drawable limit will be enhanced every year based on their actual saving.

The cash credit system will lead to frequent circulation of loan amount among the members thereby satiating their frequent credit needs.

The system will provide considerable flexibility to the SHGs for meeting their emergency needs

d. Women Self Help Group (WSHG) Fund
3.74 Budget The Union Finance Minister announced in his Speech 2011-12, a “Women SHGs

The SHGs will be able to reduce their cost of borrowing.

The

banker

will

be

freed

from

frequent

Development Fund” with a corpus of `500 crore has been created to empower women by promoting their Self Help Groups. This Fund will also support the objectives of Aajeevika i.e. the National Rural Livelihood Mission. It will empower women SHGs to access bank credit.

documentation and dealing with high number of transactions as the loan limit will be sanctioned over a period of three to five years based on the projected savings of the group.

NABARD Consultancy Services
3.75 NABARD Consultancy Services (NABCONS)

B. Business Process Re-engineering
3.77 NABCONS has set for itself an ambitious business target of contracting assignments of ` 100 crore during the financial year 2012-13. With a view to achieve this target, NABCONS has embarked upon an exercise of re-engineering its business processes by establishing verticals for its key business activities such as Infrastructure and Engineering, Food and Agroprocessing, Monitoring & Evaluation, Agriculture and Rural Development, etc. International The Business and Administration, re-engineering process

is a wholly owned company promoted by NABARD. NABCONS operates from its offices located in all Regional Offices of NABARD towards a vision of being a trusted business advisor in the field of agriculture and rural development. NABCONS provides professional consultancy services in agriculture, allied sectors and rural development to Government of India, State Governments, Banks/ Financial Corporates, Institutions, Co-operative Institutions,

NGOs, International organisations and other clients.

A. Financial Achievements
3.76 During the year, NABCONS contracted 88 executed 125 assignments including 6 assignments for a contract value of ` 26.87 crore. The company international visitor’s programmes. NABCONS earned `17.30 crore as professional fees on assignments executed, ` 0.43 crore as commission from mutual fund distribution and `2.62 crore as interest on investments aggregating a total income of `20.35 crore. Further, NABCONS is also in advanced stages of submitting bids for several prestigious assignments.

coupled with engagement of specialists is expected to diversify the business portfolio. NABCONS has also made a beginning in IT related assignments with the prestigious Bihar Ground Water Irrigation Scheme (BIGWIS) assignment for Government of Bihar.

C. India Africa Institute of Agriculture and Rural Development
3.78 India The Ministry of External Affairs, Government Africa Institute of Agriculture and Rural of India has selected NABCONS for establishing the

67

81 lakh in J & K from such assignments by ensuring effective utilisation of investment worth `23. NABCONS is expected to establish the Institute and manage it for 3 years before handing it over to the host country. Rural Financial Institutions.83 During the year. NABARD 68 Principal Crops in Various Regions of India conducted .6: Comparative Position of Income earned from Consultancy (` lakh) Sr. Cumulative disbursement stood at ` 153. Institute 1 2 3 4 IIM Indore IIM Ahmedabad AFC NABCONS 2009-10 278.85 crore).67 crore was utilised from the fund for supporting activities like research projects/studies (` 0. Table 3. Research and Development Activities 3. Business Highlights 3. Further. Jammu & Kashmir 3.07 crore). new States such as Sikkim.84 Research Projects/Studies During 2011-12.35 2010-11 679.95 1481. five research projects appropriation of profits during the year. The Fund provides financial support to select agencies for promoting applied research projects/studies. Utilisation of the Fund 3. replenished with the expenditure incurred through B. given below. involving a grant assistance of `0. Comparative Position of Income earned from Consultancy 3. Uttar Pradesh and Rajasthan have been added for monitoring of various infrastructure projects.92 3042. AFC is given in table 3. During the year 2011-12. seven projects/studies sanctioned earlier were completed during the year. North East Region. was set up in NABARD in 1982-83 as mandated by NABARD Act 1981.86 crore as on 31 March 2012. training/summer placement ( `15.85 2024. Under the Border Area Development Programme (BADP). consultation with the African Union. 3.70 crore).79 NABCONS of is engaged in third party under monitoring infrastructure development F. seminars (`0. Government Officials. training and upgrading skills of personnel of client institutions and disseminating research findings.84 997. 3. NGOs and other stakeholders in agriculture and rural development. This initiative is a follow up of the announcement made by the Hon’ble Prime Minister during the Africa India Forum Summit held in Addis Ababa in May 2011.81 A comparison of income earned from consultancy by Institutions such as IIMs. NABCONS earned an income of ` 464.57 crore).85 An Economic Analysis of Yield Gaps in A brief summary of findings of these completed studies is A. Sikkim and Jammu and Kashmir. MFIs. The Institute will cater to the training needs of Bankers. A major private sector bank has approached NABCONS to equip them for enhancing credit flow to agriculture. `17. Sanctions under the Fund i. The corpus of the Fund has been pegged at `50 crore since being 2004-05.61 lakh in NER and `118.03 Special Programme Assistance (SPA) in the states of Arunachal Pradesh. No. Nagaland.84 NA 4977. NABCONS established business relationship with several new clients such as Small Farmers Agri-Business Consortium (SFAC) in diverse areas.940 lakh in J & K.80 During the year.230 lakh in NER and `5. D.48 crore) and other activities (`0.82 The Research and Development (R&D) Fund Chair Professor Scheme ( `0.49 crore were sanctioned.Development in a country to be selected in E.6.

Underdeveloped blocks showed higher yield gaps for all crops compared to developed blocks and. a tribal Odisha district.46%) and very low for Jute (20.39%). Amongst Vegetables the yield gap was highest for Onion (172.88%). Labour cost is a major item in general. formation of District Level Monitoring Committee on SHGs to monitor. studied 236 credit linked SHGs and their members numbering 2. as a result of their association with SHGs. Farmers have diverted land from paddy to flowers due to higher returns. Problems and Prospects of Floriculture – An integrated Study of Flower Production in the State of West Bengal by Kolkata Girl’s College revealed that the cost structure not only varied across flowers but also varied across districts for the same flowers. Around 56 percent of SHG members had taken up micro entrepreneurial activity.88 An action research for organising small Alleviating the Poverty of Rural Poor in Keonjhar District of Odisha. Amongst Pulses.87 An inquiry into the Nature and Extent. funded by NABARD brought out a manual that can guide replication of such experiments elsewhere. The study did not find any definite pattern in prices over time though they reflected the importance of relative elasticities of demand and supply. 3. Loan to savings ratio was 4. the yield gap was 31. Dependency on moneylenders declined considerably after the spread of SHGs in the district. The action research brought out clearly that sustainability of the community wrests on: (a) the sustainability of the 69 .66%. Several constraints for bridging the yield gaps such as water shortage. 3. etc.22%). greater role for SHPIs. and.84%) and lowest for Rapeseed & Mustard (24. standardisation of dispensing credit with promotional activities by different agencies. the crop yield gaps of marginal and small farmers were found to be higher than medium and large farmers. exposure experience sharing meetings for SHGs. provide finance. lack of power supply. natural factors and infrastructure related factors. Farmers reported non-availability of institutional credit as a major constraint to crop yield improvement on their farms. the yield gaps were highest for Jowar (212.56%).. Positive correlation between credit taken and crop productivity was observed at farm level in all four states surveyed. 3.by Centre for Development Research. For Sugarcane. it is land preparation. New Delhi reported that among Cereals. Packaging methods are very primitive and sample producers are neither trained nor have the resources to undertake smart formal packaging. support training.753. Performance of SHGs receiving repeat doses of credit were better as compared to others. the household income as well as expenditure of the members increased significantly. supervise and provide guidance to the self help movement in the district. The study for recommended refresher extended promotional visits. shortage of skilled labour. with yield of most crops.41%) and lowest for Bengal Gram (115. Uniform interest rate is charged on bank loans as well producers into community owned. collected in 4 instalments.41:1 Majority of the SHGs were charging `24 to `36 per annum as interest for a loan of ` 100 while the transaction cost worked out to 10 to 15 per cent. it was very high for Cotton (495. Most of the SHG members. though for gladiolus. averaging to 12 per group. Paddy and Wheat responded well to credit. The rate of savings per month per member was `60 per month.41%).92%) and lowest for Potato (57. in farm and nonfarm sectors. Major constraints to flower production in the state have been institutional factors.04%) and lowest for Wheat (28. it was highest for Sunflower (180. develop and modernise the marketing channels. The motivating factor of people in forming into SHGs is possibility of additional employment and income. Amongst Fibre crops. paced association taken up in Rayagada. Hence. it was highest for Green Gram (225. Amongst Oilseeds. Credit had a positive and significant relationship. The study stresses the need to train farmers.86 Study on Impact Assessment of Micro-credit in as internal funds. via fertiliser route. training with modules suiting local conditions. were identified by the study. belonged to lower socio-economic groups.

Firewood is the only source of fuel in more than 90 per cent households of the entire region often requiring family members. and (e) continuously engage with the producer/farmers to build the faith and trust of the people CES to cooperate under with the each other the in the community. (c) encourage adoption of integrated natural farming methods with minimum external inputs and with better management of land. Hence. 3. (ISI). of the manual delineates 15 steps starting from identification of the community that withdrawal institutional champions / external agencies. The core design variables. Based on the experience with Nava Jyoti developed to project. cultural. control of over hacking and graszing and provision of cheap fuel through alternatives such as solar power or biogas. micro-climatic etc. Forty to fifty per cent households have been found in Jalpaiguri and Purulia to be the victims of starvation some time during the year. community. Degree of poverty is not uniform among the tribes. budget. schedule and strategize the activites of the producers/farmers at the village level to be able to enhance the net income over 365 days of the year. The study harps on the need for massive reforestation programmes. The study argues that the subsidy derived from the Commons forms a critical contribution to both livestock and agricultural production systems. Sustaining and improving the quality of life of family of the small and marginal farmer/producer is the main purpose of the proposed system. MGNREGA programme could hardly make any dent in the area. These variables needs to be simultaneously optimised based on the community context such as social. In an cooperative Tribal Poverty. (d) plan. Paharia. and management. Kolkata focused on Adivasis.89 A study on Impact of Economic Reforms on Shadow Of Green Revolution’ done by Foundation for Ecological Security (FES). of the conditions. thus. mostly women. Successful functioning of PDS holds the key in improving the plight of the tribal poverty. three fifth of the sample households are living below poverty level in the region. Gujarat. (b) provide emergency and production credit to the producer/farmer members and subsequently facilitate consumption demand by partially supporting the retail outlets in the villages of the Nava Jyothi CES. 3. Jharkhand and West Bengal covering 1000 tribal households across 100 villages.. (c) developing competence of local facilitators to systematically and responsibly operate the community enterprise system (CES) known as Nava Jyothi CES. ‘A Commons Story In The Rain sustainability of the producer-family is the prime concern and not the enterprise per se. include size. The study revealed that the tribal per capita income increased three times over last 20 years against 6 fold increase in the country as a whole. Eleven tribal communities have been found to have more than 80 per cent BPL households in each. The project concludes development of local human competences is a step towards actions in catalysing the and sustaining enterprise community critical system. The study conducted in 2009 covered five districts from three eastern States of Odisha. ownership. water and other natural resources. On an average. conducted by Indian Statistical Institute 70 . Oraon. infrastructure. Tribes like Birhor.90 A study titled. The key functions of the CES included (a) marketing of surplus produce for better net price realisation for the producers/farmers. Anand. probed into whether commons survive under the changing production environment and also whether livestock and agricultural production systems would remain viable if support provided by them to commons would cease. scope. PDS at subsidized prices has better record for the poor in general than the tribal poor in particular.weakest in the system. (b) developing the trust and cooperation among the members within the community. basic Hence. The growth got neutralised by doubling of the Consumer Price Index (CPI) during the same period. who live precariously far below the poverty line and seldom get academic attention. geography. Mal and Sutar are the worst victims of starvation. to travel more than 10 kms to collect it. technology.

3. Organic Farming. The study stresses on need to strengthen symbiotic relationships between Commons. D. Dr. for 3. 581 participants (Table 3. Advances in Aqua Culture. Increasing public investments for revitalising common land and water resources. for a period of three years with effect from 1 Aug 2011.Lucknow . viz . grant assistance of `1. 4.25 crore was incurred under this Scheme.94 Summer Placement Scheme The Summer Placement Scheme is being since 2005-06 to enable students resources. etc. New Delhi. Mangalore and RTC.91 Seminars. 2. Plant Bio Technology. an amount of `0. Conferences and Workshops During the year.7).02 crore was utilised from the Fund during the year for capacity building of the staff of RFIs. Formulating policy on Commons and securing rights of communities on Commons. Bolpur were ii. An expenditure of ` 0. Regional Imbalance – Inclusive Growth. During 2011-12. to be associated with various projects/studies taken up by NABARD in agriculture and rural sectors. products and services. and. state policy and privatisation by local landlords.essentially unpredictable environment. the Commonslivestock agricultural complex provides stability and control to households over their lives as 20-40% of household incomes are derived from the Commons. Training of Personnel of RFI 3. Community institutions help the poor in ensuring their rights on commons.14 crore was sanctioned to various universities. Inclusion.Anil Sharma. BIRD . one more professor. Training Activities 3. Lucknow: 3. BIRD. The grant support extended to the organisers enabled them to document the proceedings and publish background papers. Food Security. Strengthening governance institutional of natural arrangements better iii. Sustainable Livestock and Poultry Development. Bolpur respectively.96 An innovative programme for “Developing a cadre of professionals to work in rural areas” was 71 . TEs and HOs and all the 94 students have submitted project reports. Conservation of Animal Genetic Resources Water Security and Climate Change. Influencing the ‘common’ mindset on the Commons : implemented selected from reputed agriculture and management institutes. Revolution-II. NABARD revived its Chair Unit Scheme commenced their tenure of three years with effect from 01 January 2011. The students are assigned tasks/projects of relevance to NABARD for generating new ideas. SHG and Women Entrepreneurship and Coffee Research. real estate developers and mining interests. was inducted with affiliation to NCAER. During the current year. iv. conferences. thus facilitating wider dissemination of the recommendations/action points and initiate suitable policy interventions by agencies concerned. Financial Finance. research institutes and other agencies for organising 139 seminars. Economic Reforms and Agriculture. Commons as well as the institutional mechanisms that enable them to function sustainably declined due to encroachments as a result of usurpation by the elite. NABARD Chair Professor Scheme 3.95 RTC.. including Micro symposia Green and workshops Agricovering subjects/areas related to agriculture and rural development Marketing.: 1. 94 students were assigned such projects by 19 ROs. 3. during the year. renamed as BIRD. BIRD .92 during Following the approval from the Board of the year 2010-11 and three professors Directors. v. Other Developments a. C.93 Apart from extending grant assistance for various R&D activities.Bolpur conducted 574 training programmes and trained 13. livestock and agriculture in the rainfed areas of India and delineated essential steps to revive Commons.Mangalore and BIRD. Mangalore and BIRD.

KYC. Back Ended Subsidy System – Advantages and Disadvantages – Alternate Model etc. NIDA. Heads Departments. ‘Management Development Programme’. Sri Lanka were conducted. Of these 36 Orientation Programmes covering 844 participants were conducted under Vaidyanathan Committee Package for senior officers and branch managers of SCBs and DCCBs in select five states.Chairman. ‘Legal Aspects of Banking’ and ‘Health Management’ were conducted as per the needs and requirements of the client institutions. micro Finance. ‘Case study on Nalgonda DCCB and Thrissur DCCB’. ‘Financing MSMEs’. Trainers Training Programme on ‘Promotion and Financing of SHGs & JLGs’ was conducted for participants with from 4 for countries. Group Heads etc. Government and other agencies in rural areas. Cooperation and Training in Agriculture Banking (CICTAB) Pune. NABARD inaugurated the seminar and delivered the key note address and 158 delegates who included delegates from wide spectrum of policy makers. 26 Orientation Training Programmes (OTPs) for Branch Managers and senior officers of SCBs/ DCCBs were conducted. In order to build a competent cadre of professionals in the field of rural banking.97 The institute conducted 113 programmes covering 2842 participants with 10434 trainee days during the year 2011-12. attended a training programme on ‘Appraisal of Agriculture Projects’. academicians and experts from MFI sector participated in the seminar. ‘Credit Appraisal of Farm & Non-Farm Sector’. AML. Sri Lanka.A National Seminar on “Micro finance in India. ‘Government Sponsored Programmes’. Bolpur Total 261 93 113 467 377 106 93 576 344 113 117 574 6139 2474 2894 11507 9645 2649 2373 14667 8140 2842 2599 13581 designed by BIRD. BIRD. Mangalore 3. ‘Business Development & Profit Planning’. Lucknow during the year to develop capacity of rural youth to implement various development projects of NABARD. Of these. Nigeria for 15 Micro finance practitioners.599 participants during the year 2011-12. Direct Lending to RFIs. ‘Negotiation Skills for NPA Management’ ‘Investment Portfolio Management for CCBs.Table 3. Programmes on different topics. in collaboration Centre International b. The Institute conducted an Exposure Visit on ‘Agroprocessing and dairy farming for 11 Officers of SANASA Development Bank (SDB) and Sanasa Insurance Ltd. Colombo.. With a view to sensitize the senior bankers and government officials about the developmental initiatives of NABARD and the need for further interventions for enhancing credit support in the project areas. inter-alia. Mangalore BIRD. Producer’s Groups. Ten participants from the Bank of Bhutan Ltd. As a part of collaborative 72 . Two exposure visits of one week each on micro finance sector to SANASA Development Bank.Issues and Challenges” was organised by BIRD.98 The Institute conducted 117 programmes covering 2.) Shri Y C Nanda. ‘REDP and Skill Development’. Bolpur 3. viz . The second batch of the Course has commenced in July 2011. RTI Act’. Lucknow. Ex.. A programme was organised by BIRD in collaboration with HASAL Institute consisting of of Micro CEOs finance and Studies of Academy Limited. c. BIRD. BIRD started a Post Graduate Diploma in Rural Banking (PGDRB). officials from Central Bank of Nigeria. ‘Agriculture Growth – story of Gujarat and Chhatisgarh’. Lucknow BIRD. with the programme being affiliated to IGNOU. 2009-10 2010-11 2011-12 2009-10 2010-11 2011-12 BIRD. of different micro finance banks of Nigeria. two exposure visits to NABARD assisted watershed and tribal development (wadi) projects and a producer company were organised. ‘ALM and Investment Management’. NRLM.7: Training of RFI Personnel Institute Programmes Conducted Personnel Trained (Nos. Eleven studies were conducted during the year which included.

76 lakh has been released to NIRB. Course designs. for Professional revised the Excellence in Cooperatives (C-PEC) at BIRD.“Certified PACS Secretary” Professional in Cooperative CPCB . Further. institutions and 151 PACS as members and accredited 35 Cooperative Training Institutions. Bolpur also collaborated with Women’s Study Centre of Visva Bharati University.92 lakh to the National Institute of Rural Banking (NIRB). Guwahati.99 The Centre for Micro finance Research (CMR) Banking” (Level – II) 3. for a team from assistance of `9. The Centre has completed 20 studies which are available on BIRD’s website www.birdindia. Lucknow and ACMART.effort.“Certified Professional in Cooperative Cooperative Apex Bank Ltd.“Certified Trainer for Financial Cooperatives” CPS .org.90 lakh contributed towards Infrastructure Development Fund of IIBM. Training Programmes for Federations of FCs/SHGs for promotion of JLGs/TFGs and Producers’ Organisation. `560. Agriculture Scientists/Professors from the interacted trainees of different training programmes on topics agriculture/allied activities training programmes and latest technology adopted in these sectors. Kolkata. training programmes were conducted jointly with BIRD. 3.101 During the year. Bangalore for conducting 11 training programmes covered. BIRD. training infrastructure of Agriculture Cooperative Staff Training Institute (ACSTI) of Odisha State Cooperative Bank and Kalna Chamber of Commerce. Organisational The Institute also conducted in Assam Development Initiatives interest. sponsored by West Bengal RO were conducted. The cumulative grant assistance to the Centre by NABARD aggregated conducted (SBLP)’. Director BIRD participated in APRACA Finpower programme held in Bangkok and presented a paper on ‘Rural Innovations’.63 lakh towards15 per cent share of revenue expenditure for the year 2011-12 and `15. APRACA visited BIRD and held discussions with the Director and Joint Director on various issues of mutual under SOFTCOB to Junior Level Training Centres (JLTCs) of SCARDBs. The Centre has brought out two issues of its half yearly journal ‘The Micro finance Review’ during the year and has conducted a seminar on ‘Micro-finance – Issues and Challenges’.in.95 lakh as on the end of 2011-12. C-PEC accreditation parameters for cooperative banks and enrolled 57 co-operatives. Further. Bangalore for conducting 21 programmes. participants/ of different programmes. 3. 3. Kalna (West Bengal) were utilised of for Viswa conducting Bharati with training University. Santiniketan . NABARD sanctioned grant assistance of ` 7. The scheme has been revised and extended for a period of three years from 73 .“Certified Banking” (Level – I) CPCB . An amount of `4. 169 participants was were Further.100 GTZ) in NABARD in collaboration with GIZ (earlier established During the the Centre year. In a collaborative arrangement with Agriculture University relating to Institute regularly Santiniketan. and Langpi Dehangi Rural Bank.102 NABARD has been extending funding support APRACA Centre of Excellence (ACE) set up in CMR Cambodia on ‘SHG – Bank Linkage Programme Secretary General. under which IIBM. Agricultural Co-operative Staff Training Institutes (ACSTIs) of SCBs and Integrated Training Institutes (ITIs) out of the Co-operative Development Fund (CDF). Assam. Lucknow 2008. an Mr exposure Won-Sik visit Noh. content and syllabus for following four distance learning flagship courses each of six month duration were finalised: CTFC . Guwahati granted set up in BIRD in 2008 has been continuing its research activities on various themes relating to the micro finance sector to facilitate policy initiatives and improve the design and delivery of various micro finance products.

respectively. have been the principles which have guided the development initiatives.306 participants during NABARD’s development initiatives have been out under the overarching objective of ‘sustainable inclusive growth’ of India’s development To make a perceptible difference on ground.1 April 2010 to 31 March 2013.13 lakh was disbursed to the JLTCs. to enable them to improve their training system. twelve ACSTIs and three ITIs set up by SCARDBs and SCBs.58 lakh disbursed for conducting 855 programmes 2010-11. A total amount of `564. deploying technology.468 participants during 2011-12 as against `490. the bank provided technical and financial support to seven JLTCs. 74 . ACSTIs and ITIs out of the CDF for conducting 941 programmes covering 21. finding space for location/product specific viable delivery models which can be upscaled. addressing the concerns of the small operators and excluded areas. During the year. 3. The ACSTIs. covering 18. JLTCs and ITIs will be eligible for additional assistance under the revised scheme as support from NABARD for linking their activities with C-PEC.103 carved policy.

Rural Co-operative Credit Institutions: a. Loans outstanding of SCARDBs marginally increased by 0.2).60 per cent over the previous year (Table 4. b.31 per cent.40 50.07 30. 4.41 2010 370 7235 22807 153585 28188 118393 126356 DCCB 2011* 370 7950 25040 166489 42370 159859 131280 % Growth over 2010 0 9.88 9.53 per cent. The loans issued by SCARDBs and PCARDBs have marginally decreased by 0. 4. the borrowings of SCBs increased by 37. 29 out of 31 SCBs earned 31 March 2011 decreased by 4.13 per cent over the previous year. While 317 out of 370 DCCBs earned profit of `1457 crore.22 per cent respectively. resulting in aggregate profit of `204 crore.65 and 1.31 35.07 32.82 per cent and PCARDBS decreased by 2.14 -4. deposits by 8.02 per cent during the year 2010-11. 75 .2 (Table An analysis of the financial position of SCBs 4. 53 DCCBs structure.72 14.89 * Data Provisional . Loans outstanding of SCBs increased by 30.IV Capacity Building of Client Institutions The Co-operative Banks and Regional Rural Banks play a very crucial role in financial intermediation in agriculture endeavours and to rural strengthen development.The data for the year 2010-11 in respect of Assam and Bihar states is repeated from the previous year. Performance 4.79 8.07 per cent and that of DCCBs increased by 50.04 per cent and that of Primary Co-operative Agriculture and Rural Development Banks (PCARDBs) marginally decreased by 1. Institutional Development A. however in the case of DCCBs.53 37. borrowings Rural by State Agriculture and Development profit aggregating `521 crore while the remaining 2 SCBs were in the loss (`317 crore).4 Working Results Profitability During 2010-11.4 per cent. Loans issued by SCBs increased by 32.07 per cent and that of DCCBs by 35. the capacity NABARD of these institutions through various developmental and supervisory initiatives so as to enable them to compete effectively with other financial institutions and to purvey ground level credit flow efficiently. i.1: Growth of Short-Term Co-operative Credit Structure (As on 31 March) (` crore) Particulars 2010 Number Share Capital Reserves Deposits Borrowings Loans Issued Loans Outstanding 31 1636 10555 82937 23530 53621 49239 SCB 2011* 31 2024 12048 79179 32252 70818 64213 % Growth 0 23.02 3.89 per cent during 2010-11 as compared to previous year.1) indicated that their deposits as on Banks (SCARDBs) marginally increased by 1. Co-operative Table 4.3 In the case of Long Term co-operative credit during 2010-11.41 per cent and that of DCCBs have marginally increased by 3.

30 1.65 0.6 The amount of accumulated losses of SCBs `76 crore. Odisha. Tripura and West Bengal is repeated from the previous year. Table 4.82 2010 697 1528 3304 449 12698 2465 11666 PCARDBs 2011* 697 1520 3312 431 12555 2434 11363 %Growth over 2010 0 0.24 (-)4.4). Haryana. while 14 SCARDBs incurred an aggregate loss of ` 237 crore in 2010-11. Punjab. Manipur. Bihar.) Profit Amount In Loss (No. Bihar.3) 4. $: Manipur SCARDB is defunct. Arunachal Pradesh.46 7. Kerala. Table 4. Punjab. Manipur SCARDB is defunct. incurred loss to the extent of ` 443 crore resulting in overall profit of ` 1. Bihar. Kerala. The LTCCS data for the year 2010-11 in respect of Haryana. Odisha. (Table 4.5 Five SCARDBs earned an aggregate profit of 367 incurred an aggregate loss of `358 crore during the year.014 crore. Tamil Nadu.3: Working Results of Co-operative Banks (` crore) Agency Year Total (No. Assam.04 (-)0. Assam. Puducherry. *: The LTCCS data for the year 2010-11 in respect of Haryana. West Bengal. Punjab. while and DCCBs have decreased and that of SCARDBs and PCARDBs have shown increasing trend during the year 2010-11 over the previous year (Table 4.4: Accumulated Losses (As on 31 March) (` crore) Year 2009 2010 2011 * * SCBs 404 574 480 DCCBs 5204 5302 4188 SCARDBs * 1054 1188 1401 PCARDBs* 3631 4087 4299 Data Provisional The STCCS data for the year 2010-11 in respect of Uttarakhand.00 (-)1.22 (-)2. Tamil Nadu. resulting in a loss of `212 crore. Odisha. 76 . 4.) In Profit (No.74 8. Bihar and West Bengal states is repeated. Mizoram. Gujarat.) Loss Amount SCB 2009-10 31 29 491 2 208 2010-11 * 31 29 521 2 317 DCCB 2009-10 370 324 1691 46 495 2010-11 * 370 317 1457 53 443 SCARDB 2009-10 $ 20 10 136 9 332 PCARDB 2010-11 * 696 329 146 367 358 2010-11 $* 2009-10 20 5 76 14 237 696 295 131 401 344 *: Data Provisional The STCCS data for the year 2010-11 in respect of Uttarakhand. Puducherry and Tripura is repeated from the previous year.60 20 821 3321 759 15646 3210 17002 Data Provisional .2: Growth of Long-Term Co-operative Credit Structure (As on 31 March) (` crore) Particulars 2010 Number Share Capital Reserves Deposits Borrowings Loans Issued Loans Outstanding * SCARDBs 2011* 20 833 3578 822 15809 3189 17141 %Growth over 2010 0 1.Table 4. Puducherry and Tripura is repeated from the previous year. Tripura and Delhi is repeated. Tamil Nadu.13 (-)1. Assam. Bihar.52 0. Kerala. 329 earned an aggregate profit of `146 crore.The data for the year 2010-11 in respect of Assam. Out of 696 PCARDBs.

13 45.68 4600.22 46 494.65 104 73 64 49 80 370 89 55 47 48 78 310.57 4.01 55.03 5719.21 1278.83 20. 4.05 15 166.31 44.54 11.7 At the aggregate level.63 1438. information was available assets (NPA) in absolute terms as well as the percentage of NPAs to loans outstanding in respect of SCBs have increased marginally due to a marginal fall in the recovery performance (Table 4.74 78.48 283. West Bengal. Amt.65 35.23 91.41 69.46 82.83 94.39 96.75 68.46 97.82 749.05 8.76 965. Manipur. Amt. Mizoram.8 NPA At the aggregate level.41 92.75 2010-11* 70.96 on 31 March 2010 to 11.78 53 442.24 74.79 72.28 113.48 13.94 12. 4. West Bengal.24 4553. Tripura and Delhi is repeated.5: Region-wise Working Results of SCB (As on 31 March) (` crore) Region Profit/Loss (+)/ (-) 2009-10 Central Northern Eastern Western Southern North-Eastern All-India * Total NPAs 2009-10 469.9 During 2010-11.72 110. Loss No. Arunachal Pradesh.00 3.7). Loss No.81 86.78 3134.81 317 1456.66 32.02 18 1 2 25.26 124.5).30 62. Their total profits increased from `130.94 64.01 Recovery (%) (As on 30 June) 2009-10 2010-11* 92.8).56 71.84 2010-11* 6.96 593.11 18.6: Region-wise Working Results of DCCB (As on 31 March) (` crore) Region DCCB No.99 91.59 93.80 Data Provisional.47 91.91 45.01 6.21 17. 4. SCBs as a group earned increased in Northern region and that of SCARDBs in Eastern region.06 6.6).13 3.80 73.85 5.76 565.83 321.27 13.43 86.42 5.92 lakh in 2010-11 (Table 4.10 4868. No. Arunachal Pradesh.15 7. 4.59 16396.29 3.59 418.99 59. Total NPAs 2010 Central Northern Eastern Western Southern All-India * NPA % to Loans Outstanding Recovery % (As on 30 June) 2011 2010 2891.38 614.20 71.64 81. Tripura and Delhi is repeated. remained unchanged while SCARDBs’ overall return of 6. Mizoram.43 453.42 97.The data for the year 2010-11 in respect of Uttarakhand.29 4352.The data for the year 2010-11 in respect of Uttarakhand. the percentage of gross to loan outstanding in respect of DCCBs from 696 PCARDBs and number of profit making PCARDBs in all regions increased to 329 as on 31 March 2011 from 295 in the previous year.9 per cent. 4.35 Data Provisional.20 387.08 2828.57 83.01 425. Manipur.40 15246.98 1812.59 9 8 16 7 6 37.98 70.87 12. Amt. Bihar.31 9. decreased from 12.19 79.72 1448.Table 4.11 Costs and Margins During 2010-11.29 NPA as % to loans outstanding 2009-10 7.94 41.10 During 2010-11.61 75.31 203.28 49.06 (-)28.65 17 204.20 1928.17 125.26 18.87 5597.87 lakh in 2009-10 to `159. the non performing loss in NE region. profits of SCARDBs ii.24 2010-11* 507.33 36.56 24.96 11.61 per cent as on 31 March 2011 (Table 4.10 9.27 547. DCCB No. Assam.69 2011 2010 2011 19. 2009-10 Profit Amt. Bihar.30 364. 77 .63 324 1691.54 104 73 64 49 80 370 95 65 48 42 74 314. while cost of funds Table 4. Southern and Western region remained unchanged (Table 4. 2010-11* Profit No.07 434.30 71.7 67. Assam.66 14.

70 46. 10 38 105 176 0 2010-11 Profit Amt.89 37.60 67.30 Table 4.70 NPA % 2010 47. while that of DCCBs improved from 12. The DCCBs as a group. 40 28 40 230 29 Amt. Kerala.96 Recovery % As on 30 June 2010 2011 44.75 30.48 6115.01 per cent.60 2011 638.47 54.89 58.66 5647.37 per cent respectively.21 33.85 37.11 per cent.01 2011* (-)48. iii.94 49.Table 4.88 Recovery % to demand 2010 37.95 1441.45 58 56.00 (-)63. the percentage of gross NPA to total loans and advances outstanding in respect of SCBs slightly increased from 8.90 2011* 2340. earned net margin of 1.79 1411. No. Assam.90 30.260.30 75.37 205.41 per cent during 2010-11.37 205. during 2010-11.82 4887.39 73. Tamil Nadu.31 1306.49 (-)188. resulting in financial margin of 1.51 per cent (excluding miscellaneous income of 2. of Branches 2010 Central Eastern North-Eastern Northern Southern Western All-India * Profit/Loss(-) 2010 (-)52.29 2256.92 367 357.29 722. Profit No.09 per cent and 1.62 per cent.31 831. No.96 44. The average transaction cost and risk cost of SCBs during the year worked out to 1.42 20. 2.8: Region-wise Working Results of PCARDB (As on 31 March) (` crore) 2009-10 Region No.87 2011 57.40 47.47 7.70 45. yielding a financial margin of 2.16 20. 15.64 39.13 At the aggregate level.61 working funds was 7.45 58.47 69.49 per cent).60 Total NPAs NPA % to Loans Outstanding 2010 52.36 78 .71 per cent in 2010-11 compared to net margin of 1.71 725.52 34 28 41 Loss Amt.54 2011* 37.03 86.92 per cent (excluding miscellaneous income of 0. while the cost of funds was 5.97 20. Odisha.06 per cent in 2009-10.07 (-)3. Bihar. Punjab.70 46.76 174.96 per cent to 11.61 52.15 (-)132.273.91 7.15 59.00 (-)63.82 50 66 145 406 29 696 No. worked out to 5. The average transaction cost and risk cost as a percentage of working funds were 2.74 16. 35.77 39.The data for the year 2010-11 in respect of Haryana.85 19.36 40.39 per cent respectively.85 40.80 480.29 75.80 480.00 33.23 74.07 (-)3. the overall return on per cent).84 per cent to 9. Non-Performing Assets and Recovery Performance 4.00 51.48 36.83 0 2010 623.54 40. 4.08 (-)196.75 44.47 16.06 2011* 50.61 50. Central Eastern Northern Southern Western 50 66 145 406 29 16 38 104 137 0 Amt.33 2.22 39.03 349 138 33 85 56 181 842 Data Provisional .00 57.87 401 329 159.94 11.12 In the case of DCCB.15 (-)130.94 50.7: Region-wise Working Results of SCARDB (As on 31 March) (` crore) Regions No.01 percent as on 31 March 2011.00 51.15 7.37 per cent and 0.91 1283.99 17.46 Total NPAs 2010 2265.47 54.42 1.48 36.68 0 343. SCB as a group earned a positive net margin 0.93 17.77 18.55 46.42 313.77 17.15 55.47 249.38 44. Puducherry and Tripura is repeated from the previous year.83 37.53 269 0 29 All-India 696 295 130.30 63.76 368. 80.16 0 Loss No.06 37.62 4834.

4. Chandigarh.88 per cent from 45. The gross NPA of SCARDBs and PCARDBs were estimated at `6115. * Data Provisional . Manipur. and Tripura continued to have high level of NPA.87 per cent in the previous year.67 12392. However. Mizoram. In the case of DCCBs. Madhya Pradesh.94%).06 per cent in the previous year. Punjab. Tamil Nadu. region (3.70 127.83%) and these regions had a lower percentage of NPA as compared to the all-India average of 9. In the Western (20.60 1113. # The LTCCS data for the year 2010-11 in respect of Haryana. declining trend in recovery performance was recorded by SCARDBs in Chhattisgarh. Puducherry and Tripura is repeated. However.57%) and NorthEastern (41.246. Puducherry and Tripura is repeated from previous year.46%) regions were lower during 2010-11. Karnataka and Maharashtra.9.The STCCS data for the year 2010-11 in respect of Uttarakhand. While. The asset classification of NPA of SCBs. The loan recovery of Andaman & Nicobar SCB increased considerably to 92. the gross NPA was higher than the all-India average. Jammu & Kashmir.13%). Mizoram and Tripura states repeated. In absolute terms.56 2521. as compared to the all India average of 11. registering an increase of 31.10).70 crore and `4834.64 1771. Assam. Punjab.15 The average loan recovery of SCBs showed no change and remained at 92 per cent as on 30 June 2011.22 15246.61 1188. * The LTCCS data for the year 2010-11 in respect of Haryana. West Bengal.01 per cent during 2010-11.719. Assam. Rajasthan.10%) regions. The loan recovery of SCARDBs in Jammu & Kashmir. Kerala and Meghalaya had improved their loan recovery performance.Odisha. Maharashtra. Goa.10: Percentage of Recovery of loans to Demand (As on 30 June) Agency 2009 92 72 41 39 2010 92 76 41 37 2011* 92 79 40 39 1714. Kerala.94 10983. Nagaland.13 SCBs DCCBs SCARDBs PCARDBs Data Provisional -The STCCS data for the year 2010-11 in respect of Uttarakhand. NPA in Northern region (6. Maharashtra.94 crore for DCCB as on 31 March 2011.99 3997. SCARDBs and PCARDBs are given in Table 4. Himachal Pradesh.28 1445.29 crore for SCB and `15. The loan Table 4. Kerala. SCBs in Chhattisgarh. Bihar.per cent (table 4. 4.6).17 1802.58 4377.41 per cent for SCB and decline of 7. Bihar and West Bengal states repeated. Assam. Bihar. DCCBs.19%) and southern (9.16 The average loan recovery of SCARDBs marginally declined to 40 per cent as on 30 June 2011 from 41 per cent as on 30 June 2010. 79 . Pradesh.18 per cent as on 30 June 2010. 4. Central region (6.9: Composition of NPA of Co-operative Banks (As on 31 March 2011) (` crore) Asset Classification Sub-Standard Doubtful Loss Assets Total NPAs Provisions required Provisions made * SCB* DCCBs* SCARDBs PCARDB# Table 4.19 1499. gross NPA for PCARDBs marginally increased to 51. Assam. Gujarat and Uttar Pradesh increased fairly.73 6496.99 2718.27 5719.11 per cent as on 30 June 2011 from 59.28 3523.01%) followed by Southern region (4. recovery of loans improved to 39 per cent as on 30 June 2011 compared to 37 per cent during the previous year. SCBs in Chandigarh.09 per cent respectively.27 4731. Similarly.28 per cent and a decline of 1. Eastern region (6.82 2505. The percentage of gross NPA to total loans and advances outstanding in the SCARDBs as on 31 March 2011 decreased to 44.36 crore as on 31 March 2011 showing an increase of 8. SCB in Jammu & Kashmir. Puducherry. Odisha.75 2832. Manipur.0 per cent for DCCB over the previous year.14 The NPA of SCBs was lowest in Northern Meghalaya. gross NPA was estimated at `5. showed decline in recovery of loans during 2010-11. Kerala.40 1040. Tamil Nadu. Bihar.5 and 4. Arunachal Bihar.61 per cent. while that of DCCBs increased from 76 per cent as on 30 June 2010 to 79 per cent as on 30 June 2011 (Table 4. in the case of PCARDB.93 6031.65 53.96 per cent as on 31 March 2011 from 51.

Rajasthan (10). Madhya Pradesh (8). 4. Jharkhand (1). Odisha (3). Odisha (11). Odisha (3). Punjab. Maharashtra.11 to Table 4. Tamil Nadu (3) Haryana (15).12: Frequency Distribution of States/UTs according to Level of Loan Recovery of SCBs and DCCBs (As on 30 June 2011) Recovery (%) <40 SCBs* Arunachal Pradesh. Punjab (19). Assam. Tamil Nadu (5) Haryana (1). Rajasthan (4). **: Manipur SCARDB is defunct. Andaman & Nicobar. Rajasthan. Uttar Pradesh (15). Uttar Pradesh (15). Uttar Pradesh (12). Madhya Pradesh (14). Uttar Pradesh (8). Karnataka. Uttarakhand. Karnataka (3). Puducherry and Tripura is repeated from the previous year. Mizoram and Tripura. Manipur. Assam. Madhya Pradesh (7). while it showed decline in PCARDBs in Chhattisgarh. Assam.The data for the year 2010-11 is repeated from previous year in respect of SCBs & DCCBs in Uttarakhand. Gujarat (10). @: The LTCCS data for the year 2010-11 in respect of Haryana. Delhi. Mizoram and Tripura.) 2011 47 77 121 124 369 SCARDBs**@ (No.The data for the year 2010-11 is repeated from previous year in respect of SCBs & DCCBs in Uttarakhand. Uttarakhand (6).17 The frequency distribution of loan recovery of banks in the co-operative structure is presented in Table 4. Uttarakhand (2). Chhattisgarh (6). Maharashtra (9). Assam. Odisha. Tamil Nadu. Karnataka (17). Sikkim. Kerala. Bihar. Bihar (1). Rajasthan. Himachal Pradesh (1). Karnataka. Bihar (10). Kerala (11).11: Frequency Distribution of Co-operative Banks According to Range of Loan Recovery Percentage (As on 30 June) (Number) Recovery (%) (Recovery to demand) <40 >40 to < 60 >60 to < 80 >80 Total SCBs* (No. Bihar. Nagaland. Odisha.) 2010 337 205 113 42 697 2011 337 205 113 42 697 *: Data Provisional . West Bengal (5). Maharashtra (9). Goa. Andhra Pradesh (16). Andhra Pradesh. Maharashtra (10). Jharkhand (7) West Bengal Madhya Pradesh (9). Himachal Pradesh (1). Puducherry and Tamil Nadu (18) 31 >80% Total * 370 Data Provisional . Tamil Nadu (15) >60 and <80% Chandigarh. Himachal Pradesh. Data for one DCCB in MP not available. MP . Manipur. 80 . recovery of PCARDBs had improved in Maharashtra. Maharashtra (3) (3). Table 4. West Bengal. Kerala. Bihar.) 2010 1 1 12 17 31 2011 3 1 9 18 31 2010 47 77 121 124 369 DCCBs* (No. Jammu & Kashmir (2) Punjab (1). Uttarakhand (2). West Bengal (2). Mizoram and Tripura (9) Chhattisgarh. UP . Karnataka (1). Bihar (6).13. Kerala (1). Rajasthan (15). Gujarat. Madhya Pradesh states. Andhra Pradesh (6). Gujarat (1). Bihar (5). Kerala (2).) 2010 10 4 4 1 19 2011 10 4 4 1 19 PCARDBs*@ (No. and Meghalaya (3) J & K (1) Manipur DCCBs* Jammu & Kashmir (1).Table 4. >40 and <60% Haryana (3). Haryana. West Bengal (7). Gujarat (7). Punjab. Bihar.

Karnataka (77). Haryana (15). Supersession was done in 7 SCARDBs also and in 284 PCARDBs in the LT structure (Table 4. West Bengal. Kerala (20). Kerala (3). 4. Gujarat Haryana. lack of professionalism and skilled staff.) Boards under Supersession (%) *: The data for the year 2010-11 is provisional SCBs* 31 9 29 DCCBs* 370 86 23 SCARDBs* 20 7 35 PCARDBs* 697 284 41 81 . weak MIS. Rajasthan (4). J & K. Rajasthan (1). Tamil Nadu (2). Rajasthan (16). poor internal checks and control systems. As on 31 March 2011. Tamil Nadu and Maharashtra > 40 % and < 60% PCARDBs * Chhattisgarh (2). Madhya Pradesh.Table 4. Odisha (5) Punjab (29).) Boards under Supersession (No.13: Frequency Distribution of States/UTs according to Levels of Loan Recovery of SCARDBs and PCARDBs (As on 30 June 2011) Recovery < 40 % SCARDBs Chattisgarh. Tamil Nadu (8). Odisha (26). executed by State Governments under the GoI revival package for STCCS). Tamil Nadu (170) West Bengal (11) (368) Chhattisgarh (7). West Bengal. poor business diversification and recoveries. Madhya Pradesh (7). Odisha. Table 4. Gujarat. Rajasthan (15). the practice of superseding elected Boards continued in some States. Karnataka (37). Karnataka (59). Despite this. Punjab (24). Bihar.18 NABARD. Data in respect of SCARDB and PCARDB for the states in Bihar. imbalances. Pradesh.19 Co-operative credit institutions suffer from low resource base. Haryana (4). Kerala.14: Elected Boards under Supersession (As on 31 March 2011) Particulars Total Institutions (No. Punjab (28). Himachal Pradesh (1). and Maharashtra repeated from previous year c. Kerala (15). West Bengal (9) (177) Uttar Pradesh. huge accumulated losses. high dependence on higher financing agencies. Assam. Odisha (4). West Bengal (2) (105) > 80% Kerala and Puducherry Karnataka (4) Kerala (8). as a matter of policy. Odisha (11). Maharashtra (29). Punjab. Madhya Pradesh (2). Himachal and Rajasthan > 60% and < 80% Tripura and Punjab Chattishgarh (3). Punjab (8). leading to heavy accumulated losses. etc. duly elected Boards were superseded in 9 SCBs and 86 DCCBs in ST structure.14). continues to emphasize the need for co-operative banks to be managed by duly elected Boards of Management (one of the covenants of the memorandum of understanding (MoU). Madhya Pradesh (29). Supersession of Elected Boards 4. West Bengal (2) (47) Total * 19* 697 Data in respect of Manipur SCARDB and Maharastra SCARDB not available .

the design. implementing DAP in phases gives an opportunity to learn from past experience and refine their policies. The fund is replenished every year through contributions from NABARD’s surplus.09 crore was sanctioned and `5. The PACS were advised to prepare Viability Action Plans under the guidance of DCCBs and to enter into MoUs with the respective DCCBs in the third phase. setting up of PACS Development Cells in contribute 82 . During the year. Assistance from the Fund is available to co-operatives in the form of soft loans/ grants for resource mobilisation. respectively. given that the functioning of other internal and external factors remain the same. Development Action Plan (DAP)/ Memorandum of Understanding (MoU)4.34 disbursed (including disbursements sanctions of previous years). The banks have been advised by ROs to prepare DAP for 2012-13 based on the existing guidelines. During 2011-12. human resource development. Organisation Development Initiatives (ODI) Organisation Development Initiatives (ODI). The progress in implementation of DAPs is monitored and review is held during quarterly meetings of State Level Task Force (SLTF) at State level and District Level Monitoring and Review Committee (DLMRC) at district level. As many as 21 SCBs and 10 SCARDBs and State Governments concerned had executed DAP/MoU with NABARD for fourth phase. Further. capacity which in building turn and operational to their streamlining. DCCBs etc. separate approaches were worked out for these institutions. functional crore efficiency. The balance in the Fund as on 31 March 2012 stood at `125 crore. Hazaribagh DCCB (Jharkhand) and Phase I . with an initial contribution of `10 crore. The banks which seriously follow the targets under DAP have grown financially stronger. the process of preparing institution specific DAP and executing MoU began in 1994-95. e. Co-operative Development Fund 4.follow up visit of Cuttack DCCB (Odisha) have been conducted . Keeping in view the changing environment for RRBs (Amalgamation) and co-operative banks (adoption of revival package for STCCS). 2000-01 to 2003-04 (Phase II).22 being conducted by NABARD since 1994-95 is a re-engineering process which facilitates and aims at achieving change in the organisational structures. As on 31 March 2012.21 The Co-operative Development Fund (CDF) was constituted in 1993 under Section 45 of NABARD Act 1981.d. During 2011-12. 03 ODI viz.91 crore. f. ODI is a motivation to employees and helps in increasing their productivity and profits of the organisation. cumulative sanctions and disbursements were ` 105. 2004-05 to 2006-07 (Phase III). 1994-95 to 1999-2000 (Phase I). The fourth phase of DAP/ MoU was for the period April 2007 to March 2012. methodology and objective of ODIs would now be more focused towards enabling financial inclusion and sustainable viability.20 Keeping in view the viability of the bank on sustainable basis. With a view to assess the impact of ODI. As RRBs and co-operative banks face different kind of problems and opportunities. financial against assistance of `7. ODI (phase I) in Vizianagaram DCCB (Andhra Pradesh).. It was implemented in four phases.26 crore and `92. the ROs were advised to evaluate the process for fine-tuning the ODI process. ODI has been able to inculcate a sense of responsibility among the employees in achieving the targets set by the management. emphasis was laid on conducting ODIs in RRBs which are not compliant with section 42(6) of RBI Act. 4. Further. 1934 and the SCB and DCCBs not complying with section 11 of BR Act 1949 (AACS).

The objectives were: (i) Revising audit framework for PACS in consultation with the stakeholders. Of this. Special Audit and Release of Recapitalisation assistance h. The contents of the draft Audit Manual for PACS were discussed with the select Government Auditors and Banks and the inputs have been incorporated in updating the manual. Special Audit of SCBs have been completed in 17 States/UTs and is in progress in 3 States. of India under “Rural Financial Institutions Programme.g. for implementing the revival package announced by the GoI in 2006. as on 31 March 2004. 4.98 crore has been released by NABARD as GoI share for recapitalisation of 53.53 crore as their respective share.26 The special audits of STCCS. ` 412. To coordinate the training efforts of various Co-operative Training Institutes (CTIs)  To develop a process of accreditation of national and state level CTIs   To evolve uniform standards for training To build and certify the professional competence in CCS 83 . An amount of ` 9002. (iii) Developing audit rating tool for PACS. Centre for Professional Excellence in Co-operatives (C-PEC) 4.23 NABARD-GIZ Rural Financial Institutions Programme (RFIP) undertook the task of preparation of Standard Audit Manual for PACS through study visits to Gujarat and Odisha. India” (RFIP) formulated as a result of Indo-German bilateral technical cooperation negotiations. Special audit of DCCBs has been completed in all fifteen States (except Punjab & Uttarakhand) which have DCCBs. The Centre will get support for a period of 5 years from January 2009 from NABARD.24 Under the purview of institutional development efforts. NABARD established a “Centre for Professional Excellence in Co-operatives” (C-PEC) in BIRD. Lucknow. Standard Audit Manual for PACS 4. (ii) Developing a Model/ Standard Audit Manual for PACS based on the revised audit frameworks.87 crore has been released by NABARD as GoI share for recapitalisation of 13 DCCBs in Orissa . An amount of ` 67. GTZ and Govt. The integrated package for the STCCS units envisages introduction of legal/institutional reforms. have executed the MoU with GoI and NABARD.25 Revival Package for Short-Term Rural Co-operative Credit Structure Twenty-five States (covering 96 per cent of the STCCS in the country). The manual will be printed and circulated among all concerned in 2012-13. Gujarat.837 PACS across 25 States. i.510 ineligible PACS in 3 States viz. Statutory audit as on 31 March 2011 in SCB and all DCCBs from NABARD approved panel has been completed in all 24 States. . Maharashtra and Odisha.205 eligible PACS in seventeen States. was completed in 80. and (iv) Developing a training programme for PACS auditors on the revised audit system. initiating measures to improve the quality of management and provision of financial assistance for cleansing the balance sheets and meeting CRAR of 7 per cent as assessed through Special Audits and for capacity building & computerisation. i. while the State Governments concerned have released ` 855. 1510 ineligible PACS affiliated to 30 DCCBs in three States and 13 DCCBs in Orissa.84 crore was released to DCCBs as GoI share in respect of 1. Broad objectives of C-PEC are:  4. to arrive at the precise amount of losses after factoring in prudential provisioning norms and the sharing pattern.

30 As decided in the VIII meeting of the National v. Gujarat. Till date.28 The process System of adoption and of Common elected Board Members of PACS from 18 States. training has been imparted to 86.519 Directors of DCCBs/SCBs from 16 states. who in turn have trained 2637 district level trainers. the RCS concerned have been advised to adopt CAS on the lines suggested by NABARD. In addition. So far. while in the remaining States where the MoU has been signed.599 iii.276 Secretaries of PACS from twenty one States. A need was felt to provide a one-time assistance to PACS to facilitate/update the 84 . a three-day Orientation programme for Supervisors/ Inspectors of PACS has been developed. 8169 Branch Managers/Senior Officers of DCCBs/SCBs in 25 States have been trained on business development/ diversification. 4. their Co-operative Societies Acts (CSA) for securing co-operatives and for their regulatory control by RBI. Uttar Pradesh and West Bengal and is in progress in 5 States.940 PACS staff in 12 States have been trained on Business Development and Profitability so far.. Andhra implementation Haryana and Tamil Nadu have developed State specific software to implement CAS/MIS in the PACS in their respective States.29. Maharashtra. Assam.237 PACS functionaries and 4. iv. the rules and bye laws are amended/being amended by the States. training on CAS/MIS has been imparted to 76. 374 CEOs of DCCBs from 17 states.31 The package lays emphasis on training and capacity building of Board Members and functionaries of STCCS. During the year. Further. Forty-five Master trainers have been trained in the module by BIRD Lucknow.32 Statutory audit as on 31 March 2004 was Implementing and Monitoring Committee (NIMC) held in September 2009.The programme is in the process of being rolled out.29 the Computerisation has been envisaged under package to facilitate of speedier and smooth Pradesh. 1. 4. As per guidelines. common software (referred to as Core Software) was finalised by NABARD and sent to all 20 States that had opted for it.490 bank supervisors/ departmental auditors. Chhattisgarh. The softwares are in different stages of roll out in these three States. The draft amendments proposed by the remaining four States have been vetted by NABARD. HRD Initiatives 4.ii. Accounting (CAS) Management Information System (MIS) formulated for PACS is underway in 20 States.27 the Legal and institutional Reforms The participating States are required to amend democratic character and autonomy of dry run of the software is required to be done in each of the States before roll out. training has been imparted to 410 master trainers from 25 States. 13 States have initiated dry run in three PACS each. Training on CAS/MIS has been imparted to the PACS functionaries in all the implementing States. 4. Madhya Pradesh. completed in 80. As on 31 March 2012. Dry run of the software has been completed in eight States viz. The remaining 7 States have been advised to initiate the process at the earliest. CEOs of SCBs in 8 NER States and 3.837 PACS to facilitate implementation of Revival Package. Incentive Scheme for Audit clearance in PACS 4. Accordingly. Common Accounting System and Management Information System and Computerisation in PACS 4. twenty one States have amended their CSA. Odisha. Consequent upon the amendment to the State Co-operative Societies Act. even as previous amendments in two of these States are awaiting Presidential assent. 38. CAS/MIS.

Box 4. The incentive is applicable to PACS having arrears in audit and those that complete the audit upto 2010-11 latest by 31 December 2011. recapitalisation assistance. The Scheme was operative till 31 March 2012. Loans disbursed by PACS during the period 2006-07 to 2009-10 have registered growth rates ranging from 73 per cent in Uttar Pradesh to 53 per cent in Madhya Pradesh and 23 per cent in Odisha. Impact of the Revival Package 4. SF/MF coverage was a priority with the CCS and continued to be around 70 per cent during the period 2006-07 to 2009-10 in Madhya Pradesh & Uttar Pradesh.  The overall efficiency and functioning of PACS has improved after implementation of the Revival Package. BDP etc. The impact studies have brought out a number of positive features (Box 4. need for diversified business  85 . Financial indicators have shown varying degrees of improvement in all three tiers of CCS during the implementation period of the Package. Hence.will be given to each PACS for clearing the arrears of audit upto the financial year ending 31 March 2011.34 Credit Structure The Task Force constituted by GoI under the States. Co-operative Societies Act.1). have increased substantially as could be observed from the credit disbursement patterns during the period from 2007-08 to 2009-10. improved liquidity of PACS and has enabled them to re commence lending and restore cash flow and income streams. Rules and Bye-laws have been amended thus creating the basis for autonomy to the banks/PACS. One time incentive of `8000/. Chaturvedi.audit so that it is regularly completed on continuous basis. to review the need for a separate package for Revival of LTCCS submitted its report to the Government of India on 25 February 2010. reduction of government interference. and responsibility & accountability of Boards to run the affairs. latest by 31 December 2011.  Release of recapitalisation assistance has   development. Specialised Training PACS governance Secretaries/ staff has shown positive impact. Business specially Development in most on of Plan the and (BDP) in have states to been like prepared by PACS across the states in general and entities Chhattisgarh.33 In most of the SCBs/DCCBs of implementing 4. There is increased awareness among members regarding the reforms process like autonomy of CCS. The objective of the scheme is to provide an incentive to PACS for clearing arrears of audit by 31 December 2011. The credit absorption capacity of those PACS which had received Chairmanship of Shri G.time Scheme for Audit clearance in PACS has been formulated and circulated among the ROs. Second Phase of Impact Studies on Implementation of the Revival Package in 13 States has been awarded to three agencies. fit and proper criteria for CEO/Professional Directors has been adopted which had a positive impact on the governance of the STCCS and helped in improving their financial position. vii. Announcement of the Package by the GoI is awaited. C. Programme Karnataka. The Annual Average Growth Rate (AAGR) during the period 2003-04 to 2009-10 ranged from 62 per cent to 38 per cent (in States like Odisha and Haryana). Revival of Long-Term Rural Co-operative vi. a one. Expenditure under the Scheme will be met out of CDF of NABARD.1: GoI Revival Package for STCCS : Impact Assessment Study  Overall outcome of the Revival Package has been positive and visible in several ways such as the institutional and legal reforms that have been undertaken so far.

43 1532.77 crore as on 31 March 2012.30 6753.90 12734.28 per cent and loans and advances (outstanding) (Table 4.19 crore and net worth increased to `14786.19 75 2420.18 3.00 4076.85 22 82.15) The accumulated losses of RRBs have decreased by 27. RRBs making net current profit and having no accumulated losses) had increased to 60 as on 31 March 2012 as compared to 58 as on 31 March 2011. with a network of 16. Over a period of three years (2009–10 to 2011-12).) Recovery (%) NPA to loans outstanding (%) Net worth *: Number reduced due to amalgamation.66 78546.of RRB (No.32 crore posted by 7 RRB in 2010-11.) Branch Network (No.44 98917.95 18770.914 branches covering 635 notified districts in 26 States and the UT of Puducherry. 13 (of 14) and 7 (out of 8) RRBs posted profit in the Central.37 30271. and Western region made profit.90 per cent over the previous year.15).36 indicate Financial results of RRBs for the year 2011-12 that there was improvement in their Northern.75 12306. the number of RRBs in 75 with `2420.91 1787.56 per cent performance with 79 out of 82 RRBs showing pre-tax profit to the extent of `2469.99 120188.64 2299.34 26490.55 6 35.18 1775. The remaining 3 RRBs incurred losses of ` 25.43 11135.75 crore in 2010-11.31 $ Before Tax 2010 82* 15480 197.39 23 81.18 per cent and 12. Southern.71 89145.19 187351.10 43367. the borrowings increased by 61.) Share Capital Share Capital Deposit Reserves Deposits Borrowings Investments Loans & Advances (Outstanding) Loans Issued RRB earning Profit (No.43 71724.41 1104.16). respectively.98 31 77.65 2509. While all RRBs in the 4.53 2012# 82 16914 197.13 80 1823.26 145034.06 27 80.00 3959. increased by 45.00 3984.135. Financial Performance 4. The performance of RRBs varied across the regions in 2011-12.32 2349.14 14786.00 4559.80 86510.85 4. 2009 86 * 15181 197.75 7 71.18 3 25.77 2443.65 65909.10 # Data is Provisional 2011 82 16001 197.77 crore as compared to loss of `71.63 4. The aggregate reserves of RRBs increased to ` 11.) Amount of Profit (A)$ RRB incurring Losses (No. respectively.14 8610.18 crore as compared to Table 4.92 67802.35 Post amalgamation. Eastern and North Eastern regions. (Table 4.Regional Rural Banks a.24 79 2514.91 8065.e.09 3. The number of sustainably viable RRBs (i.55 79 2469.77 86 . (Table 4.) Amount of Losses (B) Gross Profit (A – B)$ Accumulated Losses RRB with no accumulated losses (No.83 3 5. the deposits and investments increased by 29.58 166232.16 82819. 22 (of 23). the country as on 31 March 2012 stood at 82.15: Indicators of Performance (As on 31 March) (` crore) Particulars No .30 per cent.06 79379.10 56079.34 9565.79 120550.72 10472.

18 473.15 168. Profit Earning No.53 95.Table 4. Tamil Nadu (2).92 75. Branch Expansion Programme/Core Banking Solution 4. c.35 1854. Madhya Pradesh (5).18 2011 81. Mizoram (1). West Bengal (1) (4) Andhra Pradesh (2). (3).96 81.69 84. Kerala (2).25 1164. 2 out of 6 in Western and 08 out of 16 RRBs in Southern region had registered a recovery performance above 80% per cent in the year 2010-11 (Table 4.66 Gross NPA Amount 2040.67 55. Recovery Performance 4. Gujarat (3). Central Eastern Northern Southern Western All India * Loss Incurring No.Karnataka(3). J & K (1). as on 30 June 2011 as compared to 81.18 per cent as on 30 June 2010 (Table 4.88 3. 3. as on 31 March 2011 to 4.80 259.P .66 95.00 48.15 154.05 4.29 72. Assam (1).66 120550.16). RRBs had opened 913 new branches.45 404.17: Frequency Distribution of States According to Levels of Recovery of RRB (As on 30 June 2011) Recovery (%) < 40 > 40 and < 60 > 60 and < 80 Nil Bihar (1).00 25.02 40462.16 0. Assam (1). U. Uttarakhand (1). Jharkhand (1). Maharashtra (3). Uttar Pradesh (7). Twelve RRBs in the country had achieved a recovery percentage of above 90 while four RRBs had a poor recovery percentage of less than 60. Puducherry (1).39 RRBs were given a target of opening 2000 new branches by March 2012. West Bengal (2) (39) >80 Andhra Pradesh (3).98 17546.Nagaland (1). Odisha (5).78 2.53 614.16: Region-wise Working Results of RRB (As on 31 March 2012*) (` crore) Region RRB No.74 5429.71 74.11 4.00 3.03 88. J & K (1). Non-Performing Assets 4.71 4994. In the current year.46 88.77 Net Profit Amt.99 264.17). 752.85 Loans & Advances O/S 31477.75 per cent. Uttaranchal (1) (39) States 87 .10 0.71 990. Bihar (2).97 0. as on 31 March 2012. 1 out of 14 in Eastern.77 82.10 73.28 2469.11 5525. Chhatisgarh (2).37 The recovery performance of RRBs was 82. (Bihar (1). Tripura (1).86 201. taking the cumulative number of branches Table 4.00 0. Chhatisgarh (1). Manipur (1).70 18.14 per cent as on 31 March 2012.23 North . Punjab (3).48 4.63 per cent. Further.80 702.23 1104.49 83. Haryana (1).15 20109. d.53 370.93 2.P (3).Eastern 8 Data Provisional b. 1 1 0 1 0 0 3 Amt.97 75.38 The aggregate gross NPA of all RRBs increased from 3.63 23 14 15 16 6 82 22 13 15 7 16 6 79 579. M. 13 out of 15 in the Northern.53 400. Karnataka (3). Himachal Pradesh (2). Jharkhand (1).14 Recovery (%) (As on 30 June) 2010 76.00 181. 05 out of 23 RRB in Central Region. Haryana (1).89 326.15 % 6. Rajasthan (6).Meghalaya (1). Arunachal Pradesh (1).18 Accumu lated Losses 77.76 74.

the GoI along with other shareholders decided to recapitalise the RRBs by infusing funds to the extent of ` 2. of Loan Accounts 205.62 GCC SHG KCC Tenants Farmers SSI. According to the Committee. State Government’s e. major areas of Financial Inclusion Year No. as it is linked to its merger with Aryavrat GB. CBS has been fully implemented in 80 RRBs. and J&K have not released any amount in respect of 13 RRBs operating in their states. 2 in Uttarakhand and one each in Assam. Kisan Kshetriya Gramin Bank (UP) has not any progress RRBs for strengthening their CRAR to the level of 9 per cent by 31 March 2012.09 lakh. of Deposit Accounts 1157. Maharashtra State Government. as on 31 March 2012 (Table 4. West Bengal (4). J&K and Karnataka). has released the amounts partially in respect of two RRBs. As on date. The shareholder wise proportion (GoI/ Sponsor Banks/State Governments) is 50:35:15 respectively.62 9.16 crore and Sponsor banks contribution of `404.41 Recapitalisation of RRBs The Chakrabarty Committee reviewed the position of all RRBs financial recommended for recapitalisation of 40 out of 82 Table 4.18). Artisans. Financial Inclusion 4. J & K GB has implemented been able CBS to in make 90 branches out of on 184 CBS branches. UP (3). etc. the remaining RRBs are in a position to achieve the desired level of CRAR on their own. Tripura.2 8..11 crore has been released to 27 RRBs in 16 The released amount includes GoI’s contribution of `468.of all RRBs to 16. training.92 crore. Further. back office support. Accepting the recommendations of the committee.91 *: Data provisional 88 . The recapitalisation is completed in respect of 16 RRBs (5 in Odisha. As on 31 March 2012. 4.47 Of which.046. 4.25 crore. ` 1. SCC & retail trade 28.363. After release by GoI recapitalisation will be completed in respect of these nine RRBs also. Manipur (2). Rajasthan (5).40 The RRBs have emerged as a strong intermediary for Financial Inclusion in rural areas by opening a large number of “No Frills” accounts and financing under General Credit Card (GCC). It is now compulsory for all new branches to be equipped with Core Banking Solution (CBS). RRBs were directed by GoI to implement CBS in all their branches by September 2011. The six State Govts. Total number of business accounts (deposit plus loan accounts) with RRBs stood at 1. contribution of `173. including financial assistance. in lakh) Of total Loan Accounts. amount pending for release by GoI in respect of nine RRBs is `108. 3 in MP. Mizoram (6). an amount of implementation in the bank.914 spread over 635 districts in 26 states and one UT.15 2011-12 5.200 crore.74 1.18: Status of Financial Inclusion . viz. Nagaland.94 No.RRB (As on 31 March 2012)* (No. in 2010 and f. Arunachal Pradesh. ‘No-Frills’ Accounts 260.42 States.03 crore. The sponsor banks are required to extend all necessary help in this regard.

Maharashtra and Gujarat (v) review of a few good working banks. Besides. 1949. (iv) functioning of weak CCBs in Uttar Pradesh. 1949 (As Applicable to Co-operative Societies) and RRBs under Section 35(6) of the B. met four times during the year 2011-12. (ii) the working of RRBs sponsored by Bank of Baroda. monitoring. State Governments (in respect of co-operative banks) and Sponsor Banks (in respect of RRBs) for corrective action. Inspection of Banks 4.3/8/2010-RRB dated 23 February 2012 has instructed that from the year 2012-13 and onwards. Central Bank of India.g. The BoS also approved (i) the revised Supervisory Rating Scales of RRBs. Registrar of Co-operative Societies (RCS). the supervisory role of NABARD.R. Operational Matters a. 1949 (AACS)/RBI Act 1934 and voluntary inspections of all SCARDBs. . NABARD also held discussions with the Board of Directors of SCBs/DCCBs/RRBs apprising them of the deficiencies found in the inspection and urging them to initiate immediate remedial action. encompassing inspections (on-site and off-site). (ii) the revised Guidelines for the onsite inspection of RRBs. meetings were also held with the CEOs of the banks concerned to secure satisfactory compliance wherever necessary. The inspections brought out supervisory concerns relating to these institutions. b. Considering the unique nature of all these institutions. (vi) major observations from the investment portfolio in SCBs. CCBs and RRBs and (vii) banks’ adherence to exposure norms. selection NABARD process has been entrusted finalization with of the the responsibility of coordination and Supervision of the besides methodology for the conduct of the Common Written Examination. there will be a Common Written Examination which will be conducted by Institute of Banking Personnel Supervision of Banks 4.45 During 2011-12. The statutory inspections of those CCBs and RRBs with positive net worth and voluntary inspections of Apex Co-operative Societies/Federations are conducted once in 2 years. continues to be annual. guiding and facilitating functions. CCBs and SCARDBs as brought out in the inspections. Apex level Co-operative Societies and Federations. is a very comprehensive holistic one. Board of Supervision 4.43 Government of India. (iii) the revised exposure 89 A. Associate Banks of SBI and Andhra Bank. 240 CCBs and 48 RRBs) and voluntary inspections of 15 SCARDBs have been conducted as programmed. The BoS reviewed (i) the functioning of SCBs.44 NABARD inspects SCBs and CCBs in terms of which were communicated to the banks concerned. The periodicity of statutory inspections of all SCBs and those CCBs and RRBs not complying with minimum capital requirements as stipulated under the B. Selection (IBPS) for recruitment of officers and staff in RRBs. apart from and ensuring conformity with banking regulations and prudential norms. R Act. Recruitment in RRBs 4.46 The Board of Supervision (BoS) constituted by the Board of Directors of NABARD in 1999. NABARD also conducts voluntary inspection of SCARDBs. Supervisory ratings were also conveyed in confidence to the Top Management of the banks. Act. F No. Ministry of Finance. portfolio studies. the powers vested under Section 35(6) of the Banking Regulation Act. Department of Financial Services vide their letter no. (iii) reports of frauds in the supervised banks. statutory inspections of 319 banks (31 SCBs.

The number of licensed SCBs and CCBs stood at 24 and 222. all the RRBs were B. The problems in attaining licensing eligibility by co-operative banks in some States were reviewed periodically by the Hon’ble Minister for Agriculture. 4. minimum capital requirements. Forty-four amalgamated RRBs were included by the RBI in the Second Schedule to the RBI Act. Act. 1934 and 59 complied with Section 42(6)(a)(ii) of the Act. etc. 1949 (AACS) i. thus increasing the number of licensed banks to 332 (28 SCBs and 304 CCBs) as on 31 March 2012.49 From its very inception. 4 SCBs and 45 CCBs ii. Grant of Licence/Scheduling of Banks 4. 1949 (AACS). 75 complied with Section 42(6) (a) (i) of the RBI Act.48 Pursuant to the recommendations of the were found to be non-compliant with Section 22(3) (a) of the B. 1949 (AACS).norms under Credit Monitoring Arrangements (CMA) for co-operative banks. CCBs and RRBs. Act. as the affairs of these banks were construed to have not been conducted in a manner not detrimental to the interests of their depositors. in collaboration with the ICAI. the then Deputy Governor of RBI). number scheduled on 31 March 2012. 1934. A few important among them are indicated below: included in the Second Schedule to the RBI Act 1934. NABARD. four were not compliant with Section 11 (1) of the BR Act. after found with 42(6)(a)(ii) the they were Section of the of RRBs With the implementation of the Govt. Committee on Financial Sector Assessment (CFSA) (Chairman: Dr. ibid/Section 42(6)(a)(ii) of RBI Act. Government of India and Secretary. 11(1) of the B. Policy Decisions 4. With this. Similarly. as on 31 March 2011. ibid. out of the 31 SCBs. Act. Compliance with various Statutory Provisions 4.R.R. 1934.47 During the year 2011-12. Compliance with Minimum Share Capital Requirement 4. GoI. become Scheduled Banks only with the approval of the RBI. NABARD has partnered with GIZ for implementation of RFIP Programme under which pilot implementation of Risk Management Tools is in progress. as regards their capacity to pay their depositors in full and 9 SCBs and 93 CCBs did not comply with Section 22(3)(b) of the Act. has initiated the process of preparation of Audit Manual for the guidance of Chartered Accountants undertaking the Statutory Audit of SCBs/CCBs. However. 49 banks (4 SCBs and 45 CCBs) complying provisions were with of not the Section stood at 80 out of 82 as on 31 March 2012. As on 31 March 2012. As For strengthening the Risk Management Systems in the supervised entities. Ministry of Agriculture.R. During the year 2011-12.Act.50 As on 31 March 2012. of India’s Package for Revival of Short-Term Rural Cooperative Credit Structure.51 During the year a number of instructions involving policy matters were issued to the SCBs. after conducting statutory inspection. RBI issued licenses to 4 SCBs and 82 CCBs.. out of 82 RRBs. amalgamated RRBs being new entities could 90 . iii. on the basis of recommendations given by the NABARD. Rakesh Mohan. The number of scheduled SCBs remained unchanged at 16. Health of Supervised Banks i. ibid. 1949 (AACS) in regard to minimum capital requirement. respectively. one SCB and 18 complying CCBs improved their financial position and recomplied with the provisions of Section 11(1) of the B.e. c. the RBI had revised the licensing norms for co-operative banks during October 2009.

(ii) to follow the best practices to further strengthen the internal checks and control systems in the banks as brought out in the seminars. Towards entities. (v) review Computerisation of OSS New Software developed by NABARD under the OSS has been forwarded to all the supervised entities for submission of revised returns. (ii) in order to improve the quality and effectiveness of the statutory audit in Co-operative Banks. (iii) to review the IT system afresh and incorporate proper control measures for preventing frauds in the computerized environment. in July . (iii) Regional Offices of NABARD & Training Establishments had conducted sensitisation workshops on KYC (Know Your Customer) /AML (AntiMoney Laundering). SCBs/CCBs 4. Frauds. Credit Monitoring Arrangement (CMA). Hyderabad & the Punjab National Bank Institute Lucknow. (viii) Operational Guidelines on Off-site Surveillance System (OSS) & submission of Revised Returns under OSS and (ix) Operational Guidelines for conduct of Concurrent Audit in RRBs. Management. Inspecting inspection Computerised Environment and under the Core Banking Solutions. the same are done electronically. the financial statements of borrowers diligently for credit strengthening the assessment/ monitoring framework of the banks. improving NABARD the has Risk taken Management Skills of supervised up the task of preparation of “Risk Management Manual” for Co-operative Banks and RRBs. (v) a training programme on Risk Based Supervision was also arranged for the Inspecting Officers NABARD Reserve Staff of in Bank College. (ii) to follow the best practices to further strengthen internal checks and control systems as brought out in seminars. Supervisory Interventions and other initiatives: 4. (iv) to submit revised returns under Offsite Surveillance System. Controls. (iii) to review the IT system afresh and incorporate proper control measures for preventing frauds in the computerised environment. for submission and processing of Off-Site Surveillance System Returns has been introduced from December 2011. (iv) submission of revised returns under Off-site Surveillance System. the same are done electronically. Internal Checks & Corporate Governance. instructions were issued to RRBs on the following: (i) Modus operandi of an attempted fraud was brought to the notice of all RRBs.54 (i) Revised Software developed by NABARD. Investment b. Investments. Officers of to to Information better conduct equip Technology NABARD’s in (PNBIIT).a. (viii) Revised Guidelines on Monitoring of Frauds and Reporting System and (ix) Operational Guidelines on Off-site Surveillance System (OSS) & submission of Revised Returns under OSS. besides a Seminar at National Level. (vi) about the reduction in the time limit for submission of compliance on inspection reports from 90 days to 60 days (vii) initiate necessary action to ensure that whenever payments are made or received. C. (vi) initiate 91 Chennai. (iv) training programmes were also arranged for Inspecting Officers of NABARD at IDRBT. for supervised entities. necessary action to ensure that whenever payments are made or received.53 During the year under review. Asset Liability Management (ALM) etc. (vii) Revised Guidelines on Monitoring of Frauds and Reporting System.52 SCBs and CCBs were advised (i) about the modus operandi of an attempted fraud in a bank to enable them to take necessary precautions. (v) to review the financial statements of borrowers diligently for strengthening the credit assessment/monitoring framework of the banks. RRBs 4. in collaboration with the Tata Consultancy Services. 13 Workshops for Statutory Auditors were conducted at the State Level.

92 .55 For a holistic and more effective approach towards supervision. NABARD had taken up the task of preparation of ‘Risk Management Manual’ separately for Cooperative banks and RRBs.RFIP programme and Institute of Chartered Accountants of India (ICAI) for preparation of Audit Manual. Government of India had also conducted two workshops-cum-review meets of supervised banks to review and sensitise the Principal Officers regarding implementation of KYC/AML and (viii) with a view to improving the Risk Management skills in supervised banks. NABARD continued to forge partnerships with other related agencies. (vii) NABARD HO in association with the Financial Intelligence Unit-India (FIU-IND).2011. NABARD conducted 3 Regional Supervision Seminars for its inspecting officers to discuss various issues involved in the inspection of banks. 4. (vi) during the year. especially in strengthening the Risk Management Systems in the supervised banks under the GIZ .

Iqbal Khandey and was on the Board of NABARD only for a brief period. Shri D B Gupta.V Organisation. Introduction of Human Resources Management System (HRMS). Ministry of Rural Development. recruitment. Chaired by the Chairman. 5. 93 . RBI and Shri Lakshmi Chand respectively. Government of Jammu & Kashmir was appointed as Director with effect from 24 February 2012 vice Shri Navin Kumar Choudhary. credit planning. Government of India was appointed Director on the Board with effect from 01 February 2012 vice Shri B K Sinha. Senior Management 5. (g) Shri S Vijay Kumar. RBI and Shri Dipankar Gupta were appointed as Directors on the Board with effect from 19 August and 30 November 2011 vice Dr. Some departments of NABARD were reorganised with a view to harnessing greater synergies. Trilochan Sastry and Prof. Department of Financial Services. Prof. NABARD with effect from 02 June 2011 vice Shri Rakesh Singh. undertaken several initiatives in recent years to improve transparency. schemes for higher studies and incentive schemes for attaining professional qualifications by the staff are some of these initiatives. Director passed away during the year. Smt. an important governance structure continued to meet regularly during the year. Commissioner/ Secretary. Additional Secretary (FS). Corporate Governance and Management NABARD has been entrusted with the responsibility of handling diverse functions ranging from refinance. Government of India who demitted office on 01 June 2011. Government of India was appointed Director on the Board with effect from 15 November 2011 vice Shri Alok Nigam. Joint Secretary (BA). Executive Department of Financial Services. composition of the Board during the year: (a) Dr. B. 12 October and 19 December 2011 respectively. met once and nine times respectively. Principal Secretary. M L Sharma were appointed as Directors on the Board with effect from 16 May. Deputy Governor. Human tasks resource development NABARD and has organisation management is crucial to deliver on these multi-dimensional efficiently. institutional development and supervision of client banks.3 The following changes took place in the (e) (d) Shri Jainti Kumar Batish. Board of Directors 5. (b) Shri H R Khan. K C Chakrabarty.4 Management Committee. (c) Shri Umesh Kumar. Management A. Agriculture Production Department (APD).2 The Board of Directors met seven times during the year. Shashi Rekha Rajagopalan. Shri Choudhary was appointed as Director with effect from 16 December 2011. e-payments. Secretary. Deputy Governor. while the Executive Committee and the Sanctioning Committee for loans under RIDF. Ministry of Agriculture. training of staff. Government of Rajasthan was appointed as Director with effect from 01 August 2011 vice Shri R K Meena. Ministry of Finance. Ministry of Finance. Prakash Bakshi assumed charge as Chairman. governance and efficiency. the Committee deliberated on important issues having inter departmental or larger policy ramifications. (f) Shri Shaleen Kabra. vice Shri Mohd.

C F Institute of USA and Institute of Company Secretaries of India.704 and 528 officers were trained in In-house and On-location programmes. TDF. 212 officers were deputed for 101 Off-the-Shelf Programmes. ZTC and HO. 1.232 officers. Lucknow and Zonal Training Centre (ZTC). During 2011-12. etc. NABARD has been providing necessary information under the RTI Act. The Chief General Managers of Regional Offices have been designated as Central Public Human Resources Management A. The third workshop for Rajasthan RO was held at Jaipur. ground water recharge etc. Twenty hearings on appeals made to Central Information Commission were attended to. HRMS. a consultancy assignment on Training Needs Assessment study of Haryana State Co-operative Bank was completed by NBSC Lucknow.Director (ED) and concerned Chief General Managers participated in the deliberations. Mumbai covering 31 ST/SC Group B staff. Training/deputation/higher studies/ distance learning 5. Nagpur. 744 applications and 101 appeals were received and information provided. EDs and all CGMs was another forum which met regularly to discuss key issues and strategic interventions. C. negotiation skills. Lucknow.6 During the year. Human resource development initiatives a. 5. Workshops were conducted on Right to Information Act.7 During the year. This programme aimed at building capabilities in wide ranging areas such as change management and leadership time management 94 . SHG-Bank linkage advanced training programme. etc. Meetings of the Top Management Team comprising of Chairman. 177 officers completed the e-learning programme. 20 staff members availed of the facility of the Incentive Scheme for staff members to pursue professional studies. management. Executive Director as the Transparency Officer for the Bank. Financial Inclusion. Further. seminars and conferences organised by various institutions of repute in India. Microcredit. Right to Information Act (RTI). In addition. National Bank Training Centre (NBTC). “Harvard Mentor 10” in collaboration with Harvard Business School. and complying with statutory obligations. Major training programmes conducted were: International programme on Financial Inclusion.5 As part of its goal of achieving transparency Information Officers (CPIOs). USA. Hyderabad conducted 74 training programmes for 976 Group ‘B’ and ‘C’ staff. 103 programmes were conducted by NBSC Lucknow covering 2. During the period ended 31 March 2012. Executive Director as the Appellate Authority and Shri S K Mitra. One programme each conducted by NBTC. The major areas covered in these programmes were strategic HRM. Customised Programmes on Faculty Development for 25 faculty Members from various training establishments of NABARD was conducted at IIM. The Colleges also conducted pre-promotion training programmes for Group ‘B’ staff for promotion to higher grade in the officers cadre. with Shri V Ramakrishna Rao. Besides. CS and MBA from reputed institutions viz. Appraisal and monitoring of Infrastructural projects etc. One pre-recruitment training programme was conducted at IES. workshops. risk management. 2005 through Video Conferencing for selected Regional Offices at HO and one for core HO departments. 2005 5. 25 officers were deputed for a customised training programme on “Advances in Citriculture” at National Research Centre on Citriculture. respectively. Various courses being pursued by employees were CFA.049 from NABARD and 103 officials from RFIs) covering training on Watershed Development. During the year. Out of 2.232 officers (2. Sikkim Manipal University. Bandra covering 84 SC/ST participants. women empowerment. information treasury systems audit.

Manila.8 various During the year.36%) and 397 to Scheduled 95 Group ‘A’ Group ‘B’ Group ‘C’ Total 2842 868 842 4552 431 104 301 836 . Further. Chairman led a team to “2011 Global Microcredit Summit at Valladolid. 5. A team of 05 officers was deputed to participate in 3rd International Co operative Dialogue conducted by Academy of German Co operative at Montabaur. B. Further. Overseas Training / Visits by Top Management 5.1: Promotions effected during the year Particulars Officers from Grade ‘E to ‘F’ Officers from Grade ‘D’ to ‘E’ Officers from Grade ‘C to ‘D’ Officers from Grade ‘B’ to ‘C’ Officers from Grade ‘A’ to ‘B’ Group ‘B’ to officers’ cadre Total Total 33 51 103 83 7 115 392 Of which SC 2 4 5 10 1 20 42 ST 0 0 2 6 0 16 24 Tribes (8.11 With a view to ensuring optimum utilisation of the qualified.b. constituting respectively.9 per cent of the total staff strength. RRBs and DCCBs from priority states were included. viz. PAR System 5. USA.2: Total Staff Strength Cadre Total Of which SC ST 226 69 102 397 group-wise are given in the Table 5. Iran. Netherlands. Malaysia. Philippines. he attended Mini Consultation Meet conducted by APRACA in Bangkok on finalisation of project report on Fin Power Programme for seeking grant assistance from IFAD. the Shri 60th S. EXCOM Meeting of APRACA held at Tehran. of which. Dr. Sri Lanka. etc. 1. exposure visits. experienced and relatively younger staff in Group ‘B’ cadre. an exclusive Special drive for SC and ST staff was conducted and 17 Group ‘B’ staff were promoted as officers in Grade ‘A’. Spain. BIRD.72%) (Table 5. Germany. Promotion 5. Special drive for promoting SC/ST staff 5. Group ‘B’ staff opting for promotion can seek posting to their centre of choice on a long term basis and 273 eligible officers opted for the scheme. an opportunity to take up promotion to officer cadre. Mangalore conducted a customised exposure visit on micro-Finance to SANASA Development Bank. 836 belong to Scheduled Castes (18. Germany. Prakash Bakshi.10 The total staff strength of the Bank as on 31 March 2012 stood at 4552. Colombo. b. ex-Executive Director participated in Financial Inclusion Policy Makers Forum held at Kuala Lumpur. two teams of six officers each were deputed for a training programme on Enterprise Risk Management conducted by AIM.K.2). Staff Strength 5. Thailand. This included 17 employees in Group ‘B’ promoted to Group ‘A’ under the Special drive of promotion for SC/ST employees conducted to fill the backlog.9 A total of 392 promotions were effected during the year. an In-house Committee was set up under the Chairmanship of Table 5.Mitra. Shri Amaresh Kumar. Iran. seminars. c. Other officers were deputed for exposure visits to different countries. 54 officers from NABARD and 10 officers from client banks were deputed for overseas training programmes. China. The staff strength of ex-servicemen and physically handicapped employees stood at 80 and 88.7 per cent and 1.1. Details of promotions effected grade/ d.12 In order to fill the vacancies reserved in Group ‘A’ cadre. Under the scheme. etc. Promotion and Staff Strength a. wherein 5 officials each from NABARD. Malaysia. Sri Lanka. Spain.13 With a view to making the assessment of performance of officers more objective. Executive Director attended Table 5. meetings. was offered under the “Special Non-Transferability Scheme” (SNTS).

E. for as effective also handling of and the seminars. new PAR formats have been introduced for the year ending 31 March 2012. met during the year to discuss HR issues. Seminar on Administrative Issues 5. HRMD to examine the existing Performance Appraisal parameters. Quarterly meetings of the Senior Executives and Chief Liaison Officer with the representatives of the Welfare Association of SC/ST employees were held at HO and ROs. Ratings. Administrative and Other Matters A. Other training were benefits programmes SC/ST members C.14 Industrial relations in the Bank continued to Periodic discussions be harmonious during the year. instructions were issued.15 Five meetings of the Grievances Redressal Twenty one F. etc. for at 31 Two pre-promotion staff centres. The main objective of the seminars was sensitising administrative RTI cases. Other Developments 5. disciplinary were held between the Management and the All India National Bank Officers’ Association and the All India NABARD Employees’ Association. Joint Consultation Scheme for Officers 5. grievances and 6 appeals were processed.18 The of Central sexual Complaints harassment The Committee of women for at prevention function conducted training extended to SC/ST employee included grant of scholarship to 13 wards of SC/ST employees and providing compassionate appointment to the dependants of 05 deceased employees. including one for Senior Officers at Head Office were organised during the year. of which 19 ii.20 A Committee comprising GM (HRMD) and for made policy DDMs by and its the to assess report. NABOTSAV was held at Jaipur between 18-22 December 2011.17 The fifteenth Annual Sports and Cultural Festival of the Bank. Central Complaints Committee met 4 times during the year.Shri S K Mitra. grievances and six appeals were received. Welfare Measures for SC/ST employee 5. ED. 100 Officers from Head Office and for various ROs/TEs have been covered in officers issues. Other Welfare Measures for the Staff 5. Based on the recommendations of the Committee. Grievances Redressal System 5. Industrial Relations 5. 96 . Committee for revision in various facilities/amenities to DDMs 5.21 The Bank continued to adhere to the instructions issued by GoI regarding reservations for SC/ST employees in recruitment and promotions. B. the The were GM (CPD) set up to review and recommend the facilities/amenities workload considered of for recommendations DDMs submitted decisions Committee and three meetings of the Appellate Committee were held during the year. workplace in HO and Committees in RO continued to effectively. G.16 The Joint Consultative Committee (JCC) Committee and necessary comprising representatives from Bank Management and National Bank Officers’ Association.19 Two seminars on Administrative Matters. Formats. Transparency/Consultative Approach i. and to suggest modifications thereof. D.

the computer network in the Bank’s Head Office has been revamped through the procurement of latest network switches. a. The e-reverse bidding process resulted in ensuring a more competitive. Grade ‘B’ to ‘C’. in the financial year . In-house trainings like Trainers training on VC. Obviously. It helped in decision making process. it has proved a big money and time saver for the Bank apart from saving the travel time and other hassles related with tour and travel.. the Bank has decided to implement the Wide Area Network (WAN) using its existing secured MPLS backbone. After successful commissioning of Data Centre. Financial Government of India. and Grade ‘E’ to ‘F’ were conducted through VC. like e-mail. in New Delhi e. the Video Conferencing (VC) facility was utilised very effectively by all the functional departments as per needs. definitely helped in increasing the staff productivity by enabling sharing of all information/data dynamically. Wide Area Network: 5. will be set up in Mumbai. 97 • Internal Promotional Interviews – All promotional interviews from Group ‘B’ to Grade ‘A’. DRS. Bank decided to upgrade its existing Data Centre to state-of-the-art technology driven Data Centre at HO. speedy and transparent bidding process. hence making it WAN of the Bank. implementation of Human Resources Management System (HRMS) and Centralised Loan Accounting & Management System (CLMAS) was initiated after due system studies done in previous financial year. In continuation with the Bank’s efforts in this direction. For the purpose.22 The following Information Technology related have taken place during the developments year 2011-12: 2011-12. After examining various alternatives. The MPLS network has been moulded in such a way so as to integrate existing LANs at ROs with HO LAN. It is also proposed to provide the Internet services to all ROs/Training Establishments centrally from HO. CLMAS etc. training on Disaster Management. Grade ‘A’ to ‘B’.26 During the year.27 In order to provide uniform access to • • Performance Review of ROs by Chairman. b. Strengthening of IT infrastructure: 5. Intranet. HRMS.H. by obtaining responses from ROs/TEs quickly. The VC facility. Grade ‘D’ to ‘E’. Bank had successfully carried out the process of “e-reverse bidding” for the very first time. So far 980 conferences/seminars / workshops/training sessions and 1696 interviews have used VC facility. interaction Department of with the Finance Services. Video Conferencing facility: 5. During the year 690 Conferences/ Seminars/Workshops/Training sessions and 246 Interviews made use of the VC facilities. Application Tracker System (ATS). improved IT security and centralised control over IT systems. across the Bank. IT roadmap implementation in NABARD 5. • • Dissemination of important policy decisions to ROs/TEs by top management Chairman’s Secretary. Improvements in computer network environment: 5.24 Bank has taken steps in implementing IT systems as per IT roadmap.23 For the whole year. computer applications. Grade ‘C’ to ‘D’. The operationalisation of WAN will also reduce significant expenditure incurred by the Bank in decentralised IT application environment. Some of the important communications facilitated by VC facility are the following: c.25 The need for a strong Data Centre and Disaster Recovery System (DRS) emerged with the migration to centralised HRMS and CLMAS. d. better management of these applications. Centralised IT application systems: 5.

Bengaluru and NABCONS. etc. The premises for both office and staff quarters’ at Chandigarh is expected to reach construction phase during 2012-13. Shillong and Patna is underway.30 Central Vigilance Cell. The theme for the year was “Participative Vigilance”. The acquisition of residential quarters at Raipur and Ranchi is at an advanced stage. The process of purchase of plots for construction of office building / residential quarters at Chhattisgarh. Vigilance oath was administered to all the employees and eminent personalities invited to deliberate on the 98 . Offices Premises / Residential Quarters 5. viz.28 etc. residential quarters at Agartala. The Department also inspected NABARD Subsidiaries. with the external auditors the before Credit the Risk finalisation of the annual financial accounts and The RMCB Asset reviewed and Management. ID conducted Inspection of 09 ROs and 18 HODs. . Mumbai Chapter. The working of the subsidiaries revealed their sound financial health. Inspections and Concurrent Audits 5. Liability Management. The ACB reviewed the internal inspection/audit function in the institution . The Committee followed up on all the issues raised in the Statutory Auditor’s report. Head Office conducts Preventive Vigilance Inspections (PVI) of Regional Offices/Training Establishments once in two years. K. J.29 The project for the construction of RO building and residential quarters at Port Blair has been completed and the same occupied in May 2011. Operational Risk Management and other risks areas of the bank and guided in formulating the policy and strategy for integrated risk management.the system. Uttarakhand Purchase of and Sikkim has been completed. Mumbai. Agri Business Finance Ltd. CVC. Vigilance 5. The concurrent audit at HO continued to be outsourced to external auditors. HO actively participated in the meetings of ‘Vigilance Study Circle’. while the Risk Management Committee of the Board (RMCB) met thrice. NABARD Financial Services. During the year. The work relating to construction of office premises at Bengaluru. Three PVIs have been conducted during the year. on a fortnightly basis. software. to check that these systems are in place. Hyderabad. and interacted report. its quality and effectiveness with focus on the follow-up of major areas of concern in housekeeping. while the Concurrent Audit of all ROs/TEs were undertaken by the internal Concurrent Audit Cells (CAC) set up in the respective RO/TEs. inspection reports of RBI.31 In keeping with the principles of corporate governance. Jammu. Chennai. Itanagar and RTC Complex at Mangalore is in progress. Structural Audit of NABARD properties at Mumbai has been taken up so that necessary repairs and maintenance of these buildings can be initiated during 2012-13..f. plot for construction of office building/ guidelines. The Bank observed ‘Vigilance Awareness Week’ from 31 October to 5 November 2011 at Head Office and all Regional Offices/ Training Establishments to create awareness about vigilance among the staff. The synopses of Inspection Reports containing major areas of concern were placed before the ACB for deliberation and guidance. ID continued to monitor defaults by client institutions and apprise the Top Management of the status and follow-up action initiated for recovery of default. with the latest system application. the Inspection Department (ID) continued to perform its role to ensure transparency in the decision making process of the bank and accountability of staff on adherence to set rules and I. The IT personnel of the Bank were trained This capacity building would help them to occasion by the Bank. During the year. Agri Development Finance Ltd. the Audit Committee of the Board (ACB) met four times. Capacity building: 5. databases understand the scope of centralised IT systems and address the issues effectively as and when the need arises.

2009 regarding appointment on compassionate ground in RRBs and (ii) USQ No. Chandigarh and Shimla from 13 to 18 June 2011 The Parliamentary Committee on Subordinate Legislation representatives had of discussions the with the Union/ Employees’ iv. 2010 and (ii) current status of Priority Sector Lending advances with special reference to micro-credit to farmers. the following Parliamentary Committees have visited NABARD: i.2011 regarding direct loans to needy. iii. Ministry Legislation. Inspection/Tour Programme of the Third Sub-Committee of Committee of Parliament on 99 Official Language for the Central Nagar on Rajbhasha 29 Implementation 2011 at Committee September Rajya Sabha had discussions in connection with fulfillment of the assurances given in Rajya Sabha to (i) USQ No.11. Meeting of the Draft & Evidence representatives of Employees’ Association/Unions RRBs. Visits of Parliamentary Committees 5. 2053 dated 08. Sub-Committee of Committee of Parliament on Official Language with member offices of Jaipur Jaipur The Committee had discussions on “Progressive use of Official Language”. Chandigarh Rajya and Sabha Shimla to from Amritsar. Sponsor Bank and Private Sector Banks along with representatives of Ministry of Finance (Department of Financial Services) and NABARD on (i) Regional Rural Banks (Appointment and Promotion of Officers) Rules.12. 2054 dated 15.2011 regarding fraudulent practices adopted by MFIs. Cochin & Munnar from 19th to 25th June.32 During the year. Study visit by the Parliamentary Committee on Subordinate Legislation. Visit of the Committee on Subordinate Legislation. Visit of the Committee on Government Assurances. Rajya Sabha to Leh and Srinagar from 22 to 27 June 2011 The Committee on Government Assurances. 2011 The Rajya of Committee Sabha on had Subordinate discussions Banks. . Visit of the Committee on Government Assurances. Mumbai on the Rules/Regulations framed under the relevant Act.277 dated 15. Rajya Sabha to Mumbai and Goa from 25 September to 01 October 2011 The Rajya Committee Sabha on had of Subordinate discussions the Legislation.2054 dated 15. with the Union/ Association of NABARD. vi.2011 regarding provision of direct loans to the needy and (iii) SQ No.03. Sponsor of representatives Finance (Department of Financial Services) and NABARD on (i) Regional Rural Banks (Appointment and Promotion of Officers) Rules.2010 regarding Agriculture Debt Waiver (ii) USQ No. 1452 dated 23. 2010 along with current status of Priority Sector lending (ii) Reverse Mortgage Scheme and (iii) Social Sector Schemes.03. v. 16 to 22 September 2011 The Committee on Government Assurances. followed by discussion with the officials of NABARD. vii. representatives Employees’ Association of RRBs in Gujarat & Maharashtra followed by discussions with the officials of RRBs.03. ii. Study visit by the Parliamentary Committee on Subordinate Legislation to Mumbai.L. with along of the with Rajya Sabha to Bengaluru. Rajya Sabha had discussions with regard to fulfillment of the assurances given in Rajya Sabha to (i) USQ No.

availability of agricultural inputs. rehabilitation works. Patna. IRDA and NABARD: • RRBs (Appointment and promotion of officers and employees) Rules. 92 workshops were conducted across the offices in which 843 staff members were trained. access to bank credit. training was imparted on use of APS Saral. a Special Cash Award Scheme was also introduced. Further. including Further.33 GoI Implementation of Official Language Policy of was monitored HO through by their Official quarterly Language meetings. Study visit of the Parliamentary Committee on Agriculture to Ranchi. To encourage the officers to prepare PLP and Inspection Reports in Hindi. Guwahati. Unicode-compliant version of our Official Language Software in the aforesaid workshops. Financial Services Department. 2006 • Current status of priority sector lending and • Complaint redressal mechanism for customers and employees of banks. Implementation Committees constituted in all offices. Visit of the Committee on Subordinate Legislation. suicides by farmers. 2000 • Implementation committee on Scheme. Port Blair & Chennai from 23 to 29 February 2012 : The Committee discussed the following issues with representatives of various Commercial Banks. Ministry of Finance. 5. Dimapur & Imphal from 28 October to 05 November 2011 The Committee had discussions on “Progressive use of Official Language”. RBI.34 Six articles of officers of NABARD were professional requirements code of conduct) Regulations. ix. Promotion of Hindi 5. GoI carried out Rajbhasha inspection of our HO on 08 November 2011. monitoring was also done at HO level through quarterly progress reports received from ROs/TEs. 100 . 2010 • Insurance (Licensing. As a part of its efforts towards capacity building of staff in order to enable them to use Hindi in their day-to-day official work. RRBs. in-house publication ‘Rashtriya Bank Srijana’ bagged two silver trophies from Association of Business Communicators of India (ABCI). RBI. Surveyors and Loss Assessors and M. Bhopal. Yavatmal & Nagpur from 27 February 2012 to 2 March 2012 : The Committee visited Moregaon village in Yavatmal district of Maharashtra state and interacted with the villagers on the reasons for of the 183rd report of the Banking Ombudsman published in the book titled “Vittiya Samaveshan aur Vittiya Saksherta” (Financial Inclusion and Financial Literacy) published by CAB. Pune and which were selected for the national level seminar organised by NABARD under the aegis of Coordination Committee on Training in Hindi. Insurance Companies. viii. crop insurance and implementation of various programmes at State and Central Governments.Government offices located in Delhi. Kohima. Rajya Sabha to Kolkata. In addition.

67 per cent.545 crore.2 The financial resources of NABARD (Table 31 on 31 March 2012.2 0.2 42.03. respectively as 6.3 0.9 0.0 0 6.2 100. constituted 23.0 Sources of Funds A.0 31.872 Share (%) 8. The funds deployed for management system.1 4. The 101 amount of reserves and surplus increased by `2.075 Share (%) 9.045 14.000 crore to NABARD’s paid up capital during the year.03.4 The National and the Rural Credit (Long Rural Term Credit Operations) National . Reserves & Surplus NRC (LTO) and NRC (Stabilisaton) Funds STCRC Fund Deposits RIDF Deposits Bonds & Debentures Certificate of deposits Term Money Borrowings Commercial Paper Borrowings from GoI Foreign Currency Loan Borrowings against STDs Borrowings under JNN Solar Mission Programme Other Liabilities/Funds Total 13.2 0 7.000 crore against the authorised capital of `5.2 0 0.281 182 2.1 0.2 0. March 2011 to `1.3 21.1 9.788 137 110 6.1: Sources of Funds (As on 31 March 2012) (` crore) Particulars 31.1) increased from ` 1.2012 Amount 16.448 124 503 360 0 11. registering an increase of 14.203 crore.723 crore and ` 14.8 11.58.7 0.107 38. 6.000 291 75.4 100.82. as on 31 March 2012 was ` 3.245 85 503 0 33 11.2 41. as on 31 March 2012.872 crore as on the Bank and its financial performance during the year are detailed in this chapter.408 16.2011 Amount Capital. B. The total market borrowing which stood at ` 43.60 per cent over Table 6.622 277 67.000 crore.0 0.390 crore.7 16.0 8. The management of funds by investment operations (including rural infrastructure development & warehousing) and for production and marketing activities (including conversion) increased by `9. NRC (LTO) & NRC (Stabilisation) Funds 6.3 The paid up capital. as on 31 March 2012.VI Financial Performance & Management of Resources NABARD has put in place a sound resource the previous period.1 0.73 percentage of the total resources of the bank.584 1.717 158.863 16.1 1.075 crore as on 31 March 2012.058 20.0 0.33 per cent and that of RBI at 0. with the share of GoI being at 99.878 26. Reserves & Surplus 6.3 0. Capital.7 10. Government of India contributed `1.298 182.

E.975 crore Term Deposits The amount received companies aggregated `291 crore as on 31 March 2012.229 crore. ii 6.281 crores were mobilised and ` 137 crore were redeemed during the year. An amount of `4.019 crore were redeemed. reflecting an during the current year. From an initial corpus of `4.12 NABARD Rural Bonds No fresh bonds were issued during the year. `4. as against `67. 2011.8 were redeemed during the year 2011-12 outstanding 2012.5 With a the view Short to augmenting NABARD’s Rural resources for ST credit facilities to Co-operative Institutions.622 crore was repaid during the year. iii. v.622 crore.65 per cent over the operations and for conversion/ reschedulement of credit.878 crore at the end of March 2011. These augmented by internal accruals and contributions made by RBI.914 crore were issued during the year while `6. of `7. 6. as against ` 277 crore at the end of the 31 March 2011. STCRC Fund 6.76 crore and the stood at ` 7 crore as on 31 March C.241 vi.11 No fresh bonds were issued during the year. with contributions by scheduled commercial banks not achieving their priority sector obligations.7 XVII RIDF Deposits During the year. Deposits i.000 crore each for 2009-10 and 2010-11 and `10. The balance outstanding against CDs issued was `1. The outstanding under BNB stood at as on 31 March 2012. aggregate outstanding of RIDF deposits stood at . RIDF Warehousing Bharat to mobilised aggregated `15. iv. Term Co-operative Credit (Refinance) Fund (STCRC Fund) was set up in 2008-09. 6.9 Corporate Bonds Corporate Bonds amounting to ` 17. increase of ` 14 crore.(Stabilisation) short-term Funds are utilised for investment Funds are ` 75. respectively.000 crore.107 crore.13 Fresh borrowings through issue of Certificates of deposits of `1. As on 31 March 2012. and RIDF Deposits Nirman(BN) crore.281 crore as on 31 March 2012. 6.000 crore for the year 2011-12. ii. 102 repayments being `8. resulting in a net inflow deposits held as on 31 March. Bhavishya Nirman Bonds (BNB) of term tea. The amount outstanding at the end of the March 2012 stood at `33.10 The entire outstanding of `99 crore under D.682 crore as on 31 March 2011. an increase of 10. from XIII with The outstanding at the end of 31 March 2012 stood at `24 crore. Borrowings i.012 crore under RIDF VI to XIV and BN XII & XIII. deposits coffee and the from and rubber 6. Certificates of Deposits (CD) 6.6 deposits SLR Bonds was redeemed during the year and there was no outstanding as on 31 March 2012. During the year. it was augmented with an additional allocation of `5.578 crore as against ` 21. 6. The outstanding balance under the STCRC Fund as on 31 March 2012 stood at ` 20. an amount of `13 crore was contributed to these Funds. Capital Gains Bonds Capital Gains Bonds aggregating `0. commercial banks under RIDF XII to XVII. Statutory Liquidity Ratio (SLR) Bonds 6.

Government against STD at ` 360 crore was repaid during the current year.16 There of were India no fresh borrowings the year from 6.245 crore as against `6. six months’ tenor were resorted in order to meet the short-term requirements. for 10 years.14 Commercial papers amounting to `7. at ` 503 crore.338 crore as March compared outstanding at `33.a.2).19 The ST (SAO) loans outstanding against and Commercial banks for financing advances to the SCBs at `33. ST Loans. Project Loans under RIDF 6.15 Term Money Borrowings (TMB) of three to this segment during the year and a sum of crore was drawn under KfW (UPNRM) which resulted in maintaining the balance under the borrowings in foreign currency from KfW.764 crore PACS at `79 crore together with ST (OSAO) loans to SCBs at `311 crore and RRBs at `502 crore had resulted on 31 in increased 2012.65 per cent in the outstanding of credit under this segment. have been hedged at an average cost of 1. TMB worth `438 crore were raised and repayments to the tune of `366 crore made. Borrowings in Foreign Currency 6. Term Money Borrowings (TMB) 6.078 crore as on 31 March 2011.21 (LT) The loans outstanding in respect of long-term granted to State Governments for contributing to the share capital of co-operative credit institutions. recording a net outflow of `4.782 crore during the year.20 Loans provided to State Governments for implementation of rural infrastructure development stood at `70.308 aided projects. Germany. stood at March 2011.448 crore as on 31 March 2011.885 crore in the corresponding period last year.860 crore as on 31 March 2012 compared to outstanding at ` 66. Borrowings against Short term Deposits ix. xi.682 crore. loans outstanding to the for loan production and marketing credit at `48. GoI Borrowings 6. as against `124 crore.79 per cent p.vii. as on 31 March 2011. RRBs at `13. crore were issued and `11. There has been an increase of 42. MT (Conversion) Loans 6. whereas repayment of ` 39 crore was made on maturity of loans drawn under various externally Uses of Funds F. The CPs outstanding as on 31 March 2012 stood at `2. ` 140 crore as on 31 March 2012 compared to ` 167 crore as on 31 . H. x. Non-Project Loans 6. The foreign exchange risk on forex borrowings as well as interest payments. leaving an outstanding of `182 crore as on 31 March 2012. 103 G. as on 31 March 2012. As such no amount was outstanding under this head as on 31 March 2012. The outstanding balance in respect of borrowing made from GoI stood at `85 crore as on 31 March 2012. compared to the outstanding at `110 crore as on 31 March 2011. Outstanding balance under MT conversion loan stood `129 crore as on 31 March 2012 (Table 6.511 crore were repaid during the current year.17 An amount of ` 41 crore was repaid under ` 41 viii. Commercial Paper (CP) 6.18 (STD) The entire amount of borrowing made during 2011-12.

2: Uses of Funds (As on 31 March 2012) (` crore) Particulars 31.3 0.2 0. Assistance is provided based on viability of the NABARD for investment credit activities increased by 10.5 100. The outstanding loans under the segment stood at `423 crore as on 31 March 2012.2011 Amount Cash and Bank Balance Government Securities and other Investments CBLO Production and Marketing Credit Conversion of Production Credit into MT Loans MT & LT Project Loans * LT Non Project Loans Loans out of RIDF Co Finance Loans(net of provision) NIDA Loan Direct Refinance to DCCBs RIDF. with sustained income streams which can repay the loan directly to NABARD.0 (* Including the amount subscribed to Special Development Debentures of SCARDBs which are in the nature of Deemed Advances. K. NIDA 6.0 31.7 0. including track record of execution of works and delivery of services related to the specific investment being financed.1 26.6 3.6 3.7 0. as against ` 88 crore (net of provision ) at the end of previous year. J. without depending upon budgetary resources of the State Governments.1 38.5 0.2012 Amount 8313 5867 231 48338 129 43107 140 70860 72 423 910 759 231 2695 182075 Share (%) 4.1 24.2 0. During the year. a new the line of credit year was for made rural available during current long term investment loans provided by them as as on 31 March 2012 as against the assistance at ` 38. refinance 31 March by provided.03. Co-finance 6.Table 6. Investment Credit 6.7 0.6 0.0 0. The outstanding balance as on 31 March 2012 stood at borrowing entity and its financial condition.7 100.24 NIDA.1 21.22 Refinance assistance of ` 43. infrastructure investment to state-owned institutions. 104 .23 The Bank has entered into agreements with commercial banks to co-finance various projects.1 23.03.896 crore provided at the end of 2011.5 0.Warehousing infrastructure Other Loans Fixed Assets & Other Assets Total 10537 5868 228 33885 193 38896 167 66078 88 0 0 0 182 2750 158872 Share (%) 6.4 0.1 1.1 1.1 0 0 0 0.107 crore was medium and extended to banks in respect of the ` 72 crore (net of provision).9 0.1 41.) I.82 per cent.

25 A Short-term multipurpose credit product designed for direct lending to DCCBs for meeting the working capital and farm asset maintenance needs of the individual borrowers and affiliated PACS has been launched.28 The quantum of surplus deployed by NABARD in various financial instruments stood at `12.765 crore was kept in the form of Short Term Bank Deposits in order to meet liquidity and contingency requirements. FIPF.76 percent as on 31 March 2011.55 2012 as compared to 21.862 crore during the year. WDF and TDF.29 The total income of NABARD during the The profit before tax u/s 36(1) (viii) of IT Act 1961. `1 crore and `1. Fluctuation year amounted to `10. various Funds Reserve. Research and Development Fund. All RRBs / DCCBs and Scheduled commercial banks are also eligible for refinance from NABARD under this Scheme.L. supported State Government. (PBT) and profit after tax (PAT) were at ` 2. M. Fund. 105 .635 crore respectively as on 31 March 2012.202 crore for the year 2010-2011. MFDEF. Further.097 crore was deployed in Government securities and other financial instruments and an aggregate sum of `6. NRC (Stabilisation) to Fund and Reserve viz. RIDF – Warehousing Infrastructure 6. respectively.26 Government of India has accorded top priority for creation of quality warehouse facilities in the country for reducing the inefficiencies in post harvest agencies management. JNN Solar Mission and PODF ) stood at ` 231 crore as on 31 March 2012. owned/ Financial by assistance Central/ is available under this scheme to State Government. The quantum of outstanding under this line of credit stood at `910 crore as on 31 March 2012. Investment of Surplus Funds 6. NRC (LTO) Fund.64 percent per annum during 2010-11 to 6. Out of this `6. as on 31 March 2012.979 crore as against ` 9.96 percent per annum during 2011-12 due to rising interest rates.279 crore. N. an aggregate of ` 145 crore was transferred Investment FITF. as against a minimum 9 per cent norm stipulated by RBI.30 The capital to risk-weighted assets ratio per cent as on 31 March (CRAR) was at 20. Income and Expenditure 6. Direct lending to CCBs 6. Cooperative FTTF and Development Fund. Other Loans 6. on a pilot basis.. respectively. O. The loans outstanding under the Warehousing stood at ` 759 crore as on 31 March 2012. An amount of `310 crore. `10 crore. as against the previous year’s PBT and PAT `1. FIPF.824 crore and `1.27 Other loans extended out of different Funds (CDF. KfW UPNRM.252 crore and ` 1. Cooperatives etc.238 crore was transferred to Special Reserve Capital Adequacy 6. The average cost of borrowings (interest expenditure as percent of average borrowings) increased from 6.

taking into account the market scenario.Asset-Liability Management (ALM) 6. the interest rates fixed for various products and effect modification in the interest rates wherever considered essential. treasury prudential Besides operations. reviewing the Bank’s structural liquidity 106 . inter-alia. Committee monitoring (ALCO) and interest-rate limits evaluating sensitivity prescribed the market positions by the risk of vis-a-vis RBI/Board. the ALCO reviews at periodic intervals.31 The and Asset-Liability of the Bank of management Management oversees market the risk. liquidity risk and interest rate risks. The role of ALCO includes. as per the comprehensive ALM / liquidity management policies approved by the Board.

Annual Accounts 2011-2012 107 .

Tel : 23443549. 0.P. Mumbai . Website : www. read with Significant Accounting Policies and notes on accounts contain all necessary particulars and is properly drawn up in conformity with the accounting principles generally accepted in India so as to exhibit a true and fair view of the state of affairs of the Bank as at March 31.: 046070 HO : 501. In our opinion. e. off Narsi Natha Street. d. Membership No. We believe that our audit provides a reasonable basis for our opinion. 2012. 1984. Our responsibility is to express an opinion on these financial statements based on our audit. 2012 issued by Government of India. shows a true balance of the ‘profit’ for the year ended on that date and is in conformity with accounting principles generally accepted in India. read with Significant Accounting Policies and notes on accounts. Subject to the limitations of the audit mentioned in paragraph 1 above. the Balance Sheet.34% of interest expenses. Ministry of Finance.85% of interest income (includes interest on ‘deemed advances’ as per Note B-14(b) of Schedule 18) and 0. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statements presentation. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.18% of advances (includes deemed advances as per Note B-14(c) of Schedule 18). Sujata.38% of deposits and term money borrowings. and ii. 2012 and the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto in which are incorporated the returns of 11 Regional Offices and 1 Training Centre audited by us.com 108 . Parikh & Associates Chartered Accountants AUDITORS’ REPORT We have audited the attached Balance Sheet of NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT (the ‘Bank’) as at March 31. An audit includes examining. the transactions of the Bank which have come to our notice have been within the powers of the Bank. 107564W Ashok Rajagiri Partner. the Cash Flow Statement gives a true and fair view of the cash flows of the Bank for the year ended on that date.pparikh. Parikh & Associates Chartered Accountants Firm Registration No. b. Place: Mumbai Date: May 26. 2012 For and on behalf of P . The returns received from the Regional Offices and Training Centres of the Banks have been found adequate for the purpose of our audit. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory.No. We have conducted our audit in accordance with auditing standards generally accepted in India. 24. These unaudited offices account for 26. These financial statements are the responsibility of the Bank’s management. The Balance Sheet and Profit and Loss Account have been drawn up in accordance with Schedule ‘A’ and Schedule ‘B’ of Chapter IV of the National Bank for Agriculture and Rural Development (Additional) General Regulations. iii. Fax : 23415455.1/14/2004-BOA dated January 23. and the Profit and Loss Account.F . evidence supporting the amounts and disclosures in the financial statements. Profit and Loss Account and Cash Flow Statement are the returns from 18 Regional Offices and 2 Training Centres which have not been subjected to audit. Department of Financial Services. we report that: a. These Offices and Training Centre have been selected in consultation with the Bank in terms of notification no. c. Also incorporated in the Balance Sheet. on a test basis.400 009. In our opinion and to the best of our information and according to the explanations given and as shown by the books of the Bank: i. 23437853.

29.56 632.09 (` in thousands) As on 31.00.86.29 4328.85 182075.2011 10765.09.82.03.2012 3000.00 13407.95 229.23 3431.16.53 26788.44 592.03. Donations and Benefactions Other Funds Deposits Bonds and Debentures Borrowings Current Liabilities and Provisions Total Forward Foreign Exchange Contracts (Hedging) as per contra 1 2 3 4 5 6 7 8 9 SCHEDULE As on 31.00.37.20 4157.2012 8544.00 139. 107564W Ashok Rajagiri Partner M No.89.14 158872.26.03.47.44 592.09.50. Grants. 1 2 3 4 5 6 7 8 9 10 FUNDS AND LIABILITIES Capital Reserve Fund and other Reserves National Rural Credit Funds Funds out of grants received from International Agencies Gifts.67.99.92.05.48.80 158872.00.56 16058.63 Cash and Bank Balances Investments Advances Fixed Assets Other Assets Total Forward Foreign Exchange Contracts (Hedging) as per contra Commitment and Contingent Liabilities Significant Accounting Policies and Notes on Accounts 10 11 12 13 14 17 18 Schedules referred to above form an integral part of accounts As per our attached report of even date P .93 126027.046070 Mumbai Date : 26 May 2012 Prakash Bakshi Chairman H R Khan Director Dipankar Gupta Director K.49 7681.00. S.33.89.23 225.00 138.79 19329.23 38583.99. No.62 2469.09.10 5546. Parikh & Associates Chartered Accountants FRN .78 657.20.20.03.72 152625.25 95397.33.NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT BALANCE SHEET AS ON 31 MARCH 2012 Sr.40 82776.26.00.48.40 6345. 1 2 3 4 5 PROPERTY AND ASSETS SCHEDULE As on 31. Padmanabhan Chief General Manager Accounts Department Mumbai : 26 May 2012 M L Sharma Director 109 .12.20.38 18209. No.72.95.33 16045.63 2520.56 632.21.09 As on 31.68.75.00 11862.63 (` in thousands) Sr.56 2601.26.2011 2000.61 182075.

INCOME 1 2 3 Interest received on Loans and Advances Income from Investment Operations / Deposits (Refer Note B-4 of Schedule 18) Other Receipts(Refer Note B-6 of Schedule 18) Total “A” Sr.00 6.21.01 2251.02.65.00.57.86.65.00.30 27.67.49 1.00 10.07.42 44.00.00 1634.No.32 120.98 7378.85 1126.1 3 Refer Schedule 18 for Significant Accounting Policies and Notes on Accounts.93 (` in thousands) 2010-11 8169.73.05.05 1823.32 17.49 116.00.93 (` in thousands) 2010-11 1279.02 7 Schedules referred to above form an integral part of accounts PROFIT AND LOSS APPROPRIATION ACCOUNT Sr.81 144.96. 1961 b) National Rural Credit (Long Term Operations) Fund c) National Rural Credit (Stabilisation) Fund d) Co-operative Development Fund e) Research and Development Fund f) Investment Fluctuation Reserve (Refer Schedule 1) g) Farmers Technology Transfer Fund h) Farm Innovation & Promotion Fund (Refer Schedule 1) i) Producers’ Organizations Development Fund j) Rural Infrastructure Promotion Fund k) Financial Inclusion Technology Fund l) Reserve Fund Total 2011-12 1634.53.54 2.00 1237. As per our attached report of even date P .NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2012 Sr.00 8726.07.02 5.00 1.55.85 89.89 1704.39.65 33. S.34.94.67.96.01.00.00.32 29.00.61.B) Provision for a) Income Tax b) Deferred Tax Asset (Refer Note B-13 of Schedule 18) Profit after Tax Significant Accounting Policies and Notes on Accounts 18 SCHEDULE 15 16 A 16 B SCHEDULE 2011-12 9511.94 2011-12 7534.20 147.00 1481.00.80. Padmanabhan Chief General Manager Accounts Department Mumbai : 26 May 2012 M L Sharma Director 110 .04 10.22 310.88.00.18.00.046070 Mumbai. 2. 107564W Ashok Rajagiri Partner M No.73.14 11.65 2.23 21.51 10978. APPROPRIATIONS / WITHDRAWALS 1.09.86.07 (` in thousands) 2010-11 6193.42 2.00.49.22 6.27.88 35.34 22.06.00 50.63.85 0 0 0 1704.13.00.97 1027.20 50.93 455.96. Profit for the year brought down Add: Withdrawals from funds against expenditure debited to Profit & Loss A/c a) Co-operative Development Fund (Refer Schedule 1) b) Research and Development Fund (Refer Schedule 1) c) Watershed Development Fund (Refer Schedule 5) d) Micro Finance Development and Equity Fund (Refer Schedule 5) e) Investment Fluctuation Reserve (Refer Schedule 1) f) Farm Innovation & Promotion Fund Withdrawals of Funds which have been closed i) Foreign Currency Risk Fund ii) Soft Loan Assistance Fund for Margin Money iii) Agriculture & Rural Enterprise Incubation Fund Profit available for Appropriation Less: Transferred to: a) Special Reserves u/s 36(1) (viii) of IT Act.00 84.00.10.40.40 20.00 5.61 2.97.15.61 360.00 801.75 2.00 10.56.No.05.35. Parikh & Associates Chartered Accountants FRN .00 10.00.11 1346.85 0 0 45.15.30 0 10.01.23.18.00 25.00.40 20.35. EXPENDITURE 1 2 3 4 5 6 Interest and Financial Charges(Refer Note B-5 of Schedule 18) Establishment and Other Expenses Provisions Depreciation Total “B” Profit before Tax (A .02 460.41 1481.32 17.No.00 1279.99 943.22.00 162.65. Date : 26 May 2012 Prakash Bakshi Chairman H R Khan Director Dipankar Gupta Director K.88.23 9202.21.60.00 5.36 2.27.01.50.

42 5.53 256.86.19.10 5.00 1579.00.29 4.00.72.SCHEDULES TO BALANCE SHEET Schedule 1 .80.00.21.00.03.61.00 1.00. Project Rural Innovation Fund (RIF) (Refer Note B-2 & B-10 of Schedule 18) Rural Promotion Fund (Refer Note B-2 & B-10 of Schedule 18) KfW .94.65.68.Reserve Fund and Other Reserves (` in thousands) Sr.39.00 50.72.00.00.00 80.81 31.00 1577.69 50.85 190.00.92 Grants received/ adjusted during the year 0 0 63.00 15983.35.73.25.16.04.00 2. during the year 0 10.00.65 5.00 14479.00.00 49.00.64 111 . 1 2 3 4 Particulars Opening Balance as on 01.76 Balance as on 31.59.74 16.35.15.00.68.20.00 125.04.73.91.03.56 149. 1 2 3 4 5 6 Reserve Fund Research and Development Fund Capital Reserve Investment Fluctuation Reserve Co-operative Development Fund Special Reserves Created & Maintained u/s 36(1)(viii) of Income Tax Act.00 Exp.24.89.00.00 310.30 0 27.98.84 5. during the year 0 0 0 0 0 Transferred From P&L Appropriation 1237.05 6.00 11.2011 6703.00.85 1603.00 10.00.95.38 9.87.04.00.00 16058.Swiss Development Coop.Funds Out of Grants received from International Agencies (` in thousands) Sr.00.00 4445.NABARD V Fund for Adivasi Programme Total Previous year 138.00.00.00 1.31 Exp.00 11862.65.00.00. 1 National Rural Credit (Long Term Operations) Fund National Rural Credit (Stabilisation) Fund Total Previous year Opening Balance as on 01.00 16045.97 13407.55 139.80.2012 7941.40 Transferred to P&L Appropriation 0 20.00.00 60.00 50.12.2011 Contribution by RBI Transferred from P&L Appropriation Balance as on 31.03.72.81 0 3./Add.40 Balance as on 31.77 73. 1961 Producers’ Organizations Development Fund Rural Infrastructure Promotion Fund MFDEF .33.36 24.89.00.00 0 0 0 2./ Adjust. No.27.00 11862.00 2 Schedule 3 .96 0 -1.88.86 1378.80 50.70.00.53 259.64 5.77 67. Particulars No.National Rural Credit Funds (` in thousands) Sr Particulars No.58.07 0 0 0 0 2.78 138.56 National Bank .23.00 125.00 74./Disb.00.52.80.33 10674.2012 55.57 Schedule 2 .15.99 80.00 1.72.41 9.2012 14468.00 10.37 Interest credited to the fund 0 4.49 91.Reserve Fund Farm Innovation & Promotion Fund Total Previous year Opening Balance as on 01.00 2.2011 55./ Adjust.01 0 0 -5.00.00 16045.64 -4.00 25.30 0 29.70 4755.89 20.00.00.00 50.00 74.45 0 4.42 5.00.33 7 8 9 10 58.00.61.66.

66.89.15 182.24.03.Uttarakhand Regional Economic Development KfW-NB-Indo German Watershed Development Programme Phase III . .53 3.03 26.46 6.22 26.49 36.24.60 99.35.33 2.44 86.71 7.66 2.00 39.74 4.83 76.00 4.90. No.46 0 1.28.58.87.77.40 1.60 1.20.NB .99 4.81 25 2.39 18.89.42 16.87 148.79 2.16.55 3.53.39.39 2.19 1.32 73 15 0 9.79 2.16.22 14.00 1.18 3.11 0 112 .Financial Contribution KfW UPNRM .68 5.95.78. Donations and Benefactions (` in thousands) Sr.66 4.61 99.50 46.41.48 8.29 1.21 -1.60 1.19 0 0 0 26.NHB Capital Subsidy for Cold Storage NHM Capital Subsidy for Cold Storage TM North East Credit Linked Capital Subsidy for Technology Upgradation of SSIs Capital Investment Subsidy for Rural Godowns Million Shallow Tubewell Programme – Bihar Bihar Ground Water Irrigation Scheme (BIGWIS) Cattle Development Prog.Bihar (Refer Note B-10 of Schedule 18) National Project on Organic Farming Integrated Watershed Development Programme Rashtriya Sam Vikas Yojana Centrally Sponsored Scheme on Integrated Development of Small Ruminants and Rabbits 19.73.74 1.04.18.23 39.Schedule 4 .94 67 0 0 0 0 0 0 0 0 3.2011 Grant received during the year Interest Credited to the fund Adjusted against the expenditure Balance as on 31. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 B.Financial Component NE Council Fund for Miscellaneous Training Programme (Refer Note B-11 of Schedule 18) KfW NB SEWA Bank Capitalisation of Rural Financial Institutions (RFIs) GIZ Rural Financial Institutions Program (RFIP) GIZ UPNRM Technical Collaboration United Nation Development Programme(UNDP) NABARD-Financial Inclusion Fund Government Subsidy Schemes Capital Investment Subsidy for Cold Storage Projects .56 63.53 7.02 78.64 121.15 93.09.79.59 47.88 81.51 6.44. A.66 58.65 0 1.23.63.00.50.77.67 9. Grants.67 7.86 51.42 0 0 0 0 98.25 3.IX Adivasi Development Programme Maharashtra (Refer Note B-10 of Schedule 18) KfW UPNRM .56.00 0 2.00 0 0 0 0 0 0 0 1.33 30.17 0 0 18.48 28.70.86.46 1.47 1.56.14.00 11.44 86.74.Risk Mitigation Fund International Fund for Agriculture Development (IFAD) Priyadarshini(Refer Note B-11 of Schedule 18) GIZ .50.06.00 3.18 7.86.94.96 6.03 4.52.46 6.94 2.55 11.35.Accompanying Measures KfW NB UPNRM .66.18 3.00.76.37.00 1.54 2.74 4.32 9.91 0 0 0 0 0 0 9.Maharashtra (Refer Note B-10 & B-11 of Schedule 18) Indo German Watershed Development Programme Andhra Pradesh (Refer Note B-10 & B-11 of Schedule 18) Indo German Watershed Development Programme Gujarat (Refer Note B-10 & B-11 of Schedule 18) Indo German Watershed Development Programme Rajasthan (Refer Note B-10 & B-11 of Schedule 18) KfW Umbrella Programme on Natural Resource Management Fund (Refer Note B-3 of Schedule 18) NABARD Grant for Fixed Assets under NB-SDC HID Project GIZ-NABARD RFP .52 17.08.71.00 0 0 0 0 4.40 1.22.65.63.97.68 6.69 1.37 30.00 10.2012 Grants from International Agencies KfW .82 0 6.21 16. 1 2 3 4 5 6 7 8 9 10 11 12 Particulars Opening Balance as on 01.Gifts.67 5.09 0 4.36 0 0 0 2.15 34.Uttar Pradesh (Refer Note B-10 of Schedule 18) Cattle Development Programme .39 0 150.72 1.66 0 0 11.68.31 27.02.63.38.

95 56.27 3.86.16 54.71 34.00 9.30 46.34.79 23.70.25.04.73 9.63 5.2011 89.11 4.92.Handloom Package Expenditure on Loss Assessment [RRR] .47 0 1.76.Schedule 4 .00.15 341.31 0 50.84.37.58 10.on Rural Slaughter Houses Capital Subsidy Scheme .58 5094.14 1.80.00.2012 0 21.JNN Solar Mission CSS .93 5.60 85.46 191.00.00.35 12.61 1256.31 45.04 419.00.84 100.33 134.61.92 1.18 1.12.08.83 19. Uttar Pradesh (Refer Note B-10 of Schedule 18) Multi Activity Approach for Poverty Alleviation BAIF .90 54.39.88 Balance as on 31. Reform and Restructuring of Handloom Sector Implementation Cost [RRR] .60.15 340.57 Grant received during the year -89.85.00 41.00 11.49.73 166.00 46.75 100.25 0 19.92 1.69.00 15.19 8.20 2601.36 3.83 0 66.93 0 0 0 5.JNNSM .69.Agri Clinics Agri Business Centres Artificial Recharge of Groundwater in Hard Rock Area Agriculture Debt Waiver and Debt Relief Scheme (ADWDR) 2008 Women’s Self Help Groups [SHGs] Development Fund Interest Relief / Subvention Interest Subvention (Sugar Term Loan) Scheme for providing Financial Assistance to Sugar Undertakings 2007 (SEFASU .79.04.21.28. 1 2 D 1 2 3 4 5 E F 1 2 Particulars Opening Balance as on 01.68.38 -5.55.00 760.00 0 29.15.64. No.90 657.03 13.91 0 5. Uttar Pradesh Livelihood Advancement Business School Rae .00 5.00.73 0 0 0 6.28.36 2.08 2988.62 20.64.01 1.Bareli .26 Interest Credited to the fund 0 0 0 0 0 0 0 0 0 3.69.97.37.14.00 1.78 0 1.88 2.00 110.80.10.10 2704.17 10.S & R Male Buffalo calves CSS .03 2.27.Rae Bareli.00 0 0 88.82.34 0 19.49. Grants.00 0 0 2601.00.Gifts.24 13.89.57 56 -12.94.25.48 69.00 0 6.92.00 30.52 10.15 0 0 54.00 0 35.on Pig Development Dairy Entrepreneurship development Scheme CCS .52 1.22 Rain Water Harvesting Scheme Kutch Drought Proofing Project Dairy and Poultry Venture Capital Fund Poultry Venture Capital Fund Poultry Venture Capital Fund (Subsidy) Capital Subsidy for Agriculture Marketing Infrastructure.96 17. Grading and Standardisation Centrally Sponsored Scheme for establishing Poultry Estate Livelihood Advancement Business School Sultanpur.03. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 C.47 51.58 5.00 100.85 10.82.41 0 30.00. Donations and Benefactions (` in thousands) Sr.64 134.86 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 32.59.00 31.37.00 20.65 5.53.81.65.82 1232.71 0 20.49 13.Handloom Package Total Previous year 113 .29.79.89.77.59.89.93 39.92.12 48.2007) Revival Package of Short Term Cooperative Credit Structure Cost of Special Audit Recapitalisation Assistance to Credit Cooperative Societies Technical Assistance Human Resources Development Implementation Cost Revival Package for Long Term Co-operative Credit Structure (LTCCS) Revival.00 4.75.22 4706.00.42 4. Uttar Pradesh(Refer Note B-10 of Schedule 18) CCS .58 263.25.00.17.90.30.52 Adjusted against the expenditure 0 17.00 149.89.00.22 0 5.82.33.45.33 0 0 60.27 18.19 0 9.Solar Lighting CSS . Uttar Pradesh Multi Activity Approach for Poverty Alleviation Sultanpur.

95.70 4975.89.00.88 118.25 18.12.06.Other Funds (` in thousands) Sr.99.61.12 1901.34.94 101.33 53.00 75106.75.(Tawa) Adivasi Development Fund Tribal Development Fund Financial Inclusion Fund (Refer Note B-10 of Schedule 18) Financial Inclusion Technology Fund (Refer Note B-10 of Schedule 18) Farmers Technology Transfer Fund Total Previous year 109.Schedule 5 .89 16.81 930. 1 2 3 Central Government State Governments Others a) Tea / Rubber / Coffee Deposits b) Term Deposits c) Commercial Banks (Deposits under RIDF) d) Short Term Cooperative Rural Credit Fund Total 284.50.26 44.63.50.71.03 139.44.39.49 As on 31.89.29 As on 31.41.46.52 23.04.19.68.07.57 38583. Opening Additions/ Balance as on Adjustments 01.01 7.03 0 0 0 0 3.61 48.53 (` in thousands) Sr.59 1 2 Watershed Development Fund Micro Finance Development and Equity Fund (Refer Note B-10 of Schedule 18) Interest Differential Fund (Forex Risk) Interest Differential Fund .00.32 0 0 0 0 0 0 0 10.73 10.69 15.2011 98.92.77.05.00.90.57 26788.64 22.03.47.03.2012 1806.93 128.02 60.15 67877.31 1054.69.29.00 7.00. 1 2 3 4 5 SLR Bonds Non Priority Sector Bonds Capital Gains Bonds Bhavishya Nirman Bonds NABARD Rural Bond Total As on 31.12.77.00 6.Bonds and Debentures 114 .10.56.56.00 5.11.00.19 Transferred to P&L Appropriation 0 Balance as on 31.2012 0 0 As on 31.56.23 228.35 0 12.08.04.2011 during the year 1897.99.47.55 10.00 5.97 157.63.49 18.11.56.93 53.39 366.41 3 4 5 6 7 8 9 Schedule 6 .70 21682.00 95397.24.25 3431.76 0 1093.61.02.00 44.07.20 4975.86.25 82776.21.52 14622.32 12.16.36 568.28.26.during the year 201.19.54 8.86 1003.00 4157.36 0 121.52.28 0 32.46.03.22 20000.77.57 170.84.55. Particulars No.67.99.96 52.2011 0 0 Schedule 7 .52 23.67.01 10.Deposits (` in thousands) Sr.08 101.38 101. Particulars No.00 3431.36 89.27.03.41 2735.75 0 Transferred from P & L Appropriation 0 Interest Credited Expenditure/ Disb.69 0 0 0 0 0 0 45.2012 0 33577. Particulars No.30.03.36 43.11 0 0 5 157.

00 2.26.09.00 0 As on 31.32.36.48.80 (` in thousands) As on 31.86.14 6447.38 801.2012 84.81 934.2011 7 38.00 3.28 71 8.81 110.79. Cold Storage) Subsidy Reserve .93 25.23 2.00 17.56. 1 2 3 4 5 6 7 8 9 10 11 12 13 Interest / Discount Accrued Sundry Creditors Subsidy Reserve (Co-finance.26 370.51.96 5.31.2011 123.03.73.82.09 32.82.44.51.44 7681.54 230.97 1.97.31 401.12 673.22 25.00.Current Liabilities and Provisions Sr.18.14 694.03.07. Particulars No.Borrowings Sr.90.53 0 8544.06.16.03.72.26.6 of Schedule 18) (f) Provision for Other Assets & Receivables Total As on 31.CSAMI under RIDF Provision for Gratuity(Refer Note B-21 of Schedule 18) Provision for Pension(Refer Note B-21 of Schedule 18) Provision for Encashment of Ordinary Leave (Refer Note B-21 of Schedule 18) Unclaimed Interest on Bonds Unclaimed Interest on Term Deposits Term Deposits Matured but not claimed Bonds matured but not claimed Application money received pending allotment of Bonds Provisions and Contingencies (a) Amortisation in Value of Investment a/c .14 5546.00.2012 9 1168.89.Cash and Bank Balances Sr.62.56 0 10765.37.11 5.44.91 379.48.40 9002.Schedule 8 .06 0 245.37 228.46.89 1.32.64.01.03.15.03.19.00 51.37.20 20.00 360.28 93.20 2.71 0 136.97 181.65 4328.62.00.69 2245.27.57.63 15.85.00 3.2012 4905.97.80.77.equity (d) Countercyclical Provisioning Buffer (e) Sacrifice in interest element of restructured loans (Refer Note 29.81.62.26 Schedule 9 . Particulars No.00 3. 1 2 3 Central Government Jawaharlal Nehru National Solar Mission Others : (A) In India (i) Certificate of Deposits (ii) Commercial Paper (iii) Term Money Borrowings (iv) Borrowing against STD (B) Outside India (i) International Agencies Total 502.G Sec.92.44.14 6345.85 Schedule 10 .01 5.16.80 115 .48 44 30.40 1281.00 (` in thousands) As on 31. (b) For Standard Assets (c) Depreciation in value of investments .00 502.00 0 3.2011 3527.72.45.38 50 0 594.10 (` in thousands) As on 31. 1 Cash in hand 2 Balances with : A) Reserve Bank of India B) Others (I) Other Banks in India a) in Current Account b) Deposit with Banks (i) Remittances in Transit (ii) Collateralised Borrowing and Lending Obligations (II) Outside India Total As on 31.64.31 6765.12 3.27 41.76. Particulars No.03.29.

99.03.83 1.Equity shares of ` 10 each] (d) Multi Commodity Exchange of India Ltd.00.64 2037.000) .Equity shares of `10 each] (c) Agriculture Insurance Company of India Ltd.000) .000(52.00.00.000 (`2599. [50.000 (NIL) Shares of ` 10 each] (g) Other Equity Investments (i) Coal India Ltd.00 18.00 ` 25.21.00.85.000)] [Market Value `2105.00.46 (50.36.000 (56.00.09 375.00.82. [15.93.73.31.62.50.2011 58. [52.2012 As on 31.00. (ii) Power Grid Corporation of India Ltd.91 680.00.50 0 2146.305 ` 25.310 (`1971.93 ` 5.98.000] .60.00 48.000 (52.28.50.03.00 ` 42.20.62 13461.03 As on 31.00.Equity shares of ` 10 each] (iii) Agri Development Finance [Tamil Nadu] Ltd.68.08.96.000 each] (b) Small Industries Development Bank of India [1.88 18209.59 5.00.Equity shares of ` 10 each] (ii) Agri .00 5.25. Karnataka [2. [6.34 37.00 0 19329.000 36.83 1.000) . (iii) Mangnese Ore India Ltd.000 (50. Ltd.Business Finance [Andhra Pradesh] Ltd.000) .Business (v) APIDC .500 (15.81. [1.Equity shares of ` 10 each] (f) Universal Commodity Exchange Ltd [UCX] [1.Schedule 11-Investment (` in thousands) Sr.000 12343.25.00.25.60.20.Equity shares of `10.26 390.00 1.53.000) Class A Units of ` 1.00.00 1.00.65.00 1.72 1861.000 ` 5.40.80.00.000 (1.930)] b) Treasury Bills 2 3 Other Approved Securities Equity Shares in : (a) Agricultural Finance Corporation Ltd.00.Equity shares of ` 10 each] 6 Others (i) Commercial Paper [Face Value ` 1115.00.42.07.00 60.00.50 16. [56.APIDC-V Investment [49835.00 16.280 ` 43.11.50 4.99.00 16.01.60.20.54.37 0 0 0 116 .56 225.000) .960 1.00.35 13.00.Ventureast Life Fund III (vi) BVF (Bio-Tech Venture Fund) .00.00.82 5.99.000) .625 ` 9.82.Equity shares of ` 10 each] (iv) NABARD Consultancy Services Pvt.45 4. [52.16.000 (6.00 60.70.74 0 2.00.00.Equity shares of ` 10 each] (e) National Commodity and Derivatives Exchange Ltd.000 (` 1950.00.000) .00.000)] (ii) Certificate of Deposit [Face Value ` 2125 crore (` 700 crore)] (iii) Units of Liquid Mutual Funds (iv) SEAF . No.00.200(84.00 48.21.03.87.00.000 each] (vii) Tata Capital Innovation Fund Total 1036.00.59.84 2548.98.00.60.00.87.000 (1.60.00 5.94.62.Indian Agri.500) . (iv) Punjab & Sindh Bank 4 Debentures and Bonds (i) Special Development Debentures of SCARDBs (Refer Note B-16 of Schedule 18) (ii) Non Convertible Debentures 5 Shareholding in subsidiaries and Joint Venture (i) NABARD Financial Services Ltd.25. 1 Particulars Government Securities a) Securities of Central Government [Face Value `2174.

81.2011 146.55 1.02.59.87.08.76.13 1.00 0 87.03.85 2.47.11 4.88 57.29 40.29 -51.57.67.30 4.04 4.43.98 4.65 225.17 105.95 (` in thousands) As on 31.19 68.62.08.00 759.84.20 422.30.07.52.90.57 1.61.08.74.41.06.16 148.45 62.71.54.68.96. 1 LAND : Freehold & Leasehold (Refer Note B-15 of Schedule 18) Opening Balance Additions/adjustments during the year Closing Balance (at cost) Less: Amortisation of Lease Premia Book Value 2 PREMISES (Refer Note B-15 of Schedule 18) Opening Balance Additions/adjustments during the year Closing Balance (at cost) Less: Depreciation to date Book Value 3 FURNITURE & FIXTURES Opening Balance Additions/adjustments during the year Sub-Total Less: Cost of assets sold/written off Closing Balance (at cost) Less: Depreciation to date Book Value 4 COMPUTER INSTALLATIONS & OFFICE EQUIPMENTS Opening Balance Additions/adjustments during the year Sub-Total Less: Cost of assets sold/written off Closing Balance (at cost) Less: Depreciation to date Book Value 5 VEHICLES Opening Balance Additions/adjustments during the year Sub-Total Less: Cost of assets sold/written off Closing Balance (at cost) Less: Depreciation to date Book Value Total Note: Refer note A-12.42.03.6 & B-19 of Schedule 18 for change in capitalization policy.99.54.23.20.09.25.10.31.48.99.72 126027.35 263.55.46 156.23 58.77.17 4.51 128.57.56 3.68 58.11.58 30.45 164.77 101.48.41.99 71.61.91.47 1.44 84.03.99 265.23 (` in thousands) As on 31.89 2.75 70.45 11.14 82.34.15 58.82 1.53.02.35.16 53.24 58.32 2.96.43.51 32.59 72.55 8.60.89 263.63 Schedule 13 .75 50.30.43 72.22.30.46 2.56 58.72.27 4.30 2.95.28 10. As on 31.24 56.70 13.59.48 1.23 147. Refinance Loans a) Production & Marketing Credit b) Conversion Loans for Production Credit c) Other Investment Credit : i) Medium Term and Long Term Project Loans (Refer Note B-16 of Schedule 18) ii) Interim Finance iii) Direct refinance to DCCBs iv) Loans out of RIDF warehousing infrastructure v) JNN Solar Mission Direct Loans a) Loans under Rural Infrastructure Development Fund b) Long Term Non-Project Loans c) Loans under NABARD Infrastructure Development Assistance (NIDA) d) Loans under Producers’ Organization Development Fund (PODF) e) Other Loans out of: i) Co-operative Development Fund ii) Micro Finance Development Equity Fund iii) Watershed Development Fund iv) Tribal Development Fund v) KfW UPNRM Fund vi) Farm Innovation & Promotion Fund vii) NFS Promotional Activities Fund viii) Farmers Technology Transfer Fund f) Co-Finance Loans (Net of provision) Total As on 31.08.43.11.62 117 .2012 48337.17 72.33 7.54.82 40.15 9.58.99.39 2.Advances Sr.75.06 42.85.08.65 107.01 7.15 55.42.56 140.42 72.77 12.96 2.83.50 152625.63. Particulars No.61 0 0 3.59.03.26.33 2.09 6.20 32.36 77.00 910.Fixed Assets Sr.29 70860.33 193.94 2.64 259.68 8.82.44.75 229.2011 33884.12.28.67.85.39 33.91 1.04.24.33.09.2012 148.22.23 0 0 0 0 66077.10 30761.58 107.39.Schedule 12 . Particulars No.68 89.05.63.08.49 36.75.68 3.22 167.21.34.32.52 6.67 25435.

2012 1804.71.92 6.63.03 4. 1 Interest Paid on a) Deposits under RIDF b) Short Term Cooperative Rural Credit Fund c) Term Deposits d) Tea / Coffee / Rubber Deposits e) CBS Deposits f) Deposits / Borrowings g) Loans from Central Government h) Bonds (Refer Note B-5 of Schedule 18) i) Commercial Paper (Refer Note B-5 of Schedule 18) j) Term Money Borrowings k) Borrowing against ST Deposit l) Discount Cost Paid on Certificate of Deposits m) Corporate Borrowings from Banks and FIs in India n) Borrowings from International Agencies o) Watershed Development Fund p) Micro Finance Development and Equity Fund q) Rural Innovation Fund r) Financial Inclusion Fund s) Financial Inclusion Technology Fund t) Indo German Watershed Development Programme .Sultanpur.78 94.46.27 70.44.00 5.89 2520.02 102.72 21.36 25 67 2.39 0 7.22.65.85 118 .84 3. No.09.81 8.85.34.Maharashtra y) KfW .53. Uttar Pradesh ae) Multi Activity Approach for Poverty Alleviation BAIF Project -Rae Bareli.27.03 109.08.35.61 77.NB Indo German Watershed Development Programme .65 31.96 52.14 (` in thousands) 2011-12 2010-11 Schedule 15 .94 3.61 As on 31.97 3714.84 3.78.94 1.86 40.36 2.Other Assets (` in thousands) Sr.08 5.93.72. Brokerage.14 11.76.NB .21.89 71.75.20 2.91 5.86.84 38.62 4.59.86.15.35.48 372.39 16.03.Adivasi Project aa) Commitment Charges -KfW UPNRM Borrowings ab) Livelihood Advancement Business School RF Project .13 4.25 6193.15.29.34.93 233.70 259.39.Schedule 14 .04 2.Sultanpur.80.Gujarat w) KfW UPNRM .78. on Bonds and Securities Swap Charges Total 2 3 4 4078.86 7.32.58.63 0 3 10.58 247.74.01.75.2011 1815.58.06.03 8. Uttar Pradesh ad) Multi Activity Approach for Poverty Alleviation BAIF Project .82.47 130.Phase III .84.82.01.Accompanying measures x) KfW .80 18. Uttar Pradesh af) Cattle Development Programme (UP & Bihar) Discount on Collateralised Borrowing and Lending Obligations Discount.14.19 1680.00 28. Particulars No.55.37 22.99.08 18.85 37.74.03 51.01 376.26 3.31 0 20.11.81.75.Rajasthan v) Indo German Watershed Development Programme .48.19 164. Uttar Pradesh ac) Livelihood Advancement Business School RF Project .Andhra Pradesh u) Indo German Watershed Development Programme .35 1.07.67 2.50 14.03.15.Interest and Financial Charges Sr.66.00 6.39 71 1.86 50.57 35.IX Adivasi Development Programme z) KFW NB V .84 0 0 3.25.78 53 1.80 6.10 1.25.93 2469.15.08.29.58 22.00.74.46 21. Commission & issue exp.84 0 20.72 5.86 81.79 1.00 4.03.74 2.46 4.37 65.86 4.08 10.07 5. 1 2 3 4 5 6 7 8 9 10 11 12 Particulars Accrued Interest Deposits with Landlords Deposits with Government Departments and Other Institutions Housing loan to staff Other Advances to staff Advances to Landlords Capital Work in Progress [Purchase of Staff Quarters & Office Premises] Sundry Advances Advance Tax (Net of Provision for Income Tax) Deferred Tax Assets (Refer Note B-13 of Schedule 18) Expenditure recoverable from Government of India/International Agencies Discount Receivable Total As on 31.86 140.Rae Bareli.10 7534.97.68.55 11.66 2420.49.13 6.72 51.48.35.26 26.

70 2010-11 586.58.39.14 2.60 1126.00 0 144.00 14.81.29 2011-12 2010-11 2011-12 442.81.95 5.53 9.03.17 8. for NFS Promotional Measures/ Activities Wealth Tax Total Schedule 16 B .77.60.59 44.36 345. Travelling Expenses Printing & Stationery Postage. Telegrams & Telephones Repairs Auditors’ Fees Legal Charges Miscellaneous Expenses Expenditure on Miscellaneous Assets Expenditure on Study & Training [Including `9. Rates.25.84. No.29 37.Staff Nabard General Advices Depreciation in Investments G. No.37. 1 2 (i) (ii) Particulars Commitments on account of capital contracts remaining to be executed Sub Total “A” Contingent Liabilities Claims against the Bank not acknowledged as debt (Refer Note B-24 of Schedule 18) Income Tax matters in appeal Sub Total “B” Total (A + B) As on 31.81.87 8.52.32 0 2.51.46 28.Sec Depreciation in Value of Investment Account .00 -53.74.93 0 23.57.09.40 327.70.35 1.67 1.37 39.27.81.82.03.23 0 0 32. Lighting.94 As on 31.06 6.81.20.55.03.32 3.24 0 -5.Provisions (` in thousands) Sr. No.36.15 13.2012 229.81 33.82.75 1.29 0 0 0 37.23 0 0 -80.40 10.85 6.88 16 17 0 78.08 20.Establishment and Other Expenses (` in thousands) Sr.20 27.66 35.58 2.49.458 (`7.28.80.397) pertaining to establishment expenses of Regional Training Colleges] Expenditure on promotional activities under: (i) Cooperative Development Fund (ii) Micro Finance Development and Equity Fund (iii) Watershed Development Fund (iv) Farm Innovation and Promotion Fund (v) Exp.18.32.55.35.61. 1 2 3 3a 4 5 6 7 8 Particulars Provisions for : Amortisation of G.46.40.08 21.Equity Sacrifice in interest element of restructured Accounts Other Assets / Receivable Total Schedule 17 .55 42.00 7.61.06 17.60 29.02 1027.48.35.86.63.21 8.Commitments and Contingent Liabilities (` in thousands) Sr.96.15 5.6 of Schedule 18) Non Performing Assets Non Performing Assets .73.73.34 119 .24.51 3.10 27.2011 37. etc.86 40.00 3.24.00 4.36 21.32. Insurance.01 23.08 -8.90 22.81.18.32 11.Schedule 16 A .01. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Particulars Salaries and Allowances (Refer Note B-20 of Schedule 18) Contribution to / Provision for Staff Superannuation Funds Other Perquisites & Allowances Travelling & Other allowances in connection with Directors’ & Committee Members’ Meetings Directors’ & Committee Members’ Fees Rent. Sec Standard Assets (Refer Note 29.71 8.93 229.10.00 51.98 24.85 30.01 229.05.56 2.

a.SIGNIFICANT ACCOUNTING POLICIES A. The cost of assets includes taxes. under a single head of expenditure. 3. 2. shall be capitalised. Income by way of penal interest charged due to delayed receipt of loan dues or non–compliance with terms of loan. duties. costing more than ` 10. All software costing above ` 1 lakh each. 1. on straight-line basis. Schedule 18 AND FOR THE YEAR ENDED NOTES FORMING PART MARCH 31. only when it increases the future benefit from the existing assets beyond its previously assessed level of performance. liability on account of employee retirement benefits. which are accounted on cash basis: a.000 at each accounting unit. etc.4 Depreciation on premises situated on free hold land is charged at 10% p. OF ACCOUNTS SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation Fixed Assets and Depreciation 1.000/-. The valuable but easily portable electronic assets such as laptops.3 Premises include value of land. Actual results could differ from such estimates.5 Depreciation on leasehold land and premises situated thereon is computed and charged at 5% on written down value basis or the amount derived by amortising the premium/cost over the remaining period of lease hold land.2 Preparation of financial statements as per Generally Accepted Accounting Practices (GAAP) requires the management to make several assumptions and estimates that affect reported results and the reported state of affairs of the Bank. Income and expenditure 2. 3. whether purchased independently or with hardware and operating system software. c. is capitalised. applicable Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) and regulatory norms prescribed by the Reserve Bank of India (RBI). whichever is higher.2 Land includes free hold and leasehold land. Service Charges on loans given out of Micro Finance Development and Equity Fund.1 Fixed assets are stated at cost of acquisition.1 The accounts are prepared on the historical cost convention and comply with all material aspects contained in the National Bank for Agriculture and Rural Development Act. 3.2 Issue expenses relating to floatation of bonds are recognised as expenditure in the year of issue of Bonds. where segregated values are not readily available. Expenses not exceeding ` 10. 120 . Fixed Assets costing ` 1 lakh and less (except easily portable electronic assets such as laptops.7 Depreciation on other fixed assets is charged over the estimated useful life of the assets ascertained by the management at the following rates on Straight Line Method basis: Type of Assets Furniture and Fixtures Computer Installations Office Equipments Vehicles Depreciation Rate w e f 01 April 2011 20% 33. 3. 1981 and Regulations thereof. the accounting policies have been consistently applied by the National Bank for Agriculture and Rural Development (NABARD / the Bank) and are consistent with those used in the previous year. 1. when the right to receive the dividend is established.1 Income and expenditure are accounted on accrual basis.3 Dividend on investments is accounted for. if individual cost of the items is more than `10. freight and other incidental expenses related to the acquisition and installation of the respective assets. 3. 2012 3. b. 3. on written down value basis. Such differences are recognized in the year of outcome of such results. 2.6 The Bank has revised the Capitalisation Policy with effect from 01 April 2011. less accumulated depreciation and impairment losses. if any.000/-) are charged to the Profit & Loss Account in the year of acquisition. Watershed Development Fund. 3. etc. etc. Subsequent expenditure incurred on existing asset is capitalized.33% 20% 20% 2. d.. the example of such cases include the estimated life of fixed assets. provision for anticipated losses. mobile phones. mobile phones. except the following.. Except otherwise mentioned. As per the revised policy. Interest on non-performing assets identified as per RBI guidelines.

is fully provided for. 5. or at ` 1/.3 Investments categorized under “HTM” are carried at cost and provision for depreciation/diminution/ amortisation. if any. if any. scrip-wise.2 Securities that are held principally for resale within 90 days from the date of purchase are classified as “HFT”. The liability towards foreign currency borrowings at the prevailing exchange rate on the reporting date is mentioned under the Balance sheet. based on a periodic review and in conformity with the provisioning norms prescribed by RBI. irrespective of the date of purchase of asset. as a contra entry. Provision for standard assets and non–performing assets is made in respect of identified advances. 6. is ignored and loss.5 Profit on sale of investment categorized under “HTM” is recognized in Profit & Loss A/c and then transferred to Capital Reserve A/c. 5. jointly with Fixed Income Money Market and Derivative Association of India (FIMMDA). are charged to revenue. loss on such transactions is provided at the market rates. Investments are classified into “Held for Trading” (HFT).7 Treasury Bills are valued at carrying cost. 5. etc. Intangible Assets and Amortisation Intangible assets are recognized /amortised. commission. 121 . “Available for Sale” (AFS) and “Held to Maturity” (HTM) categories (hereinafter called “categories”). 5. While only net depreciation. depreciation / appreciation is recognised in the category for investments classified as “HFT”.8 Unquoted Shares are valued at breakup value. as on the date of Balance Sheet. 7. 5. Retirement Benefits 8.6 Investments under “AFS” and “HFT” are marked to market. in respect of all employees including employees transferred from RBI. if any. Contribution to the Fund is made on actual basis. 5. if any. paid at the time of acquisition. if the latest Audited Accounts of the investee companies is available. 5.2 In case of restructuring/rescheduling of advances. 8. 6. the difference between the present value of future interest as per the original agreement and the present value of future interest as per the revised agreement is provided for. is provided for. declared by Primary Dealers Association of India (PDAI). if any. 8. Foreign Currency Transactions 7. Loss on sale of investment categorized under “HTM” is recognized in Profit & Loss A/c. in respect of employees transferred from RBI. No depreciation is charged on assets sold during the year. 5. at prescribed intervals. is accounted for. as per the criteria specified in AS 26 “Intangible Assets”.3 Advances are stated net of provisions towards Nonperforming Advances.9 Brokerage. 5. 5. in value of investments.10 Broken period interest on debt investment is treated as a revenue item. wherever necessary. 4.2 Profit on cancellation of or renewal of currency SWAP agreement. however.1 Foreign currency borrowings are covered by hedging agreements and are marked to market at every reporting date. on such transfer. 7. 5.per share as per RBI guideline.1 Advances are classified as per RBI guidelines.1 In accordance with the RBI guidelines.4 Provision for diminution. is included under Current Liabilities and Provisions. is accounted on cash basis. Advances and Provisions thereon 6.2 Provision for gratuity is made based on actuarial valuation. other than temporary.Depreciation is charged for the full year. at lower of the acquisition cost/book value/ market value on the date of transfer and depreciation. Securities which are not to be classified in the above categories are classified as “AFS”. The amount of gratuity due from RBI. the resultant gain.11 Transfer of a security between the categories is accounted for. is provided for investments in the category classified as “AFS”. Investments that the Bank intends to hold till maturity are classified as “HTM”. Investments 5. if any. 6. at the rate. in the value of investments in subsidiaries under the category “HTM” is made.1 The Bank has a Provident Fund Scheme managed by RBI. on the final settlement of agreement.

such deferred tax assets can be realized. 1956. 12. Impairment of Assets 11.5 Provisions. the carrying amount of assets is tested for impairment so as to determine: a) b) the provision for impairment loss. contingent liabilities and contingent assets are reviewed at each Balance Sheet date. is recognised only when it is virtually certain that the reimbursement will be received. The expenses. or the reversal. if any. in accordance with the provisions of Income Tax Act.4 Segment assets and liabilities include those directly identifiable with the respective segments. 11.3 Employer’s contribution to Provident Fund relating to the pension optees (part of Pension Fund) is maintained with RBI. using the tax rates and laws that have been enacted or substantively enacted. as on Balance Sheet date. when it is not probable that an outflow of resources will be required to settle the obligation. a present obligation when no reliable estimate is possible. 10. 10. and the amount of the obligation can be reliably estimated. and liabilities include those that relate to the Bank as a whole and not allocable to any segment. nor disclosed.1 Tax on income for the current period is determined on the basis of taxable income and tax credits computed. such deferred tax assets can be realized. which require a provision. 9. which relate to the Bank as a whole and not allocable to segments. if any. in accordance with the provisions of Wealth Tax Act.3 Deferred tax assets relating to unabsorbed depreciation/business losses are recognised and carried forward to the extent that there is virtual certainty that sufficient future taxable income will be available against which.2 Reimbursement.4 Provision for Encashment of Ordinary Leave is made on the basis of actuarial valuation. Contingent Liabilities and Contingent Assets 12. 12.8. which relates to Bank as a whole and not allocable to segments is included under “Other unallocable bank income”. and a possible obligation arising from past events where the probability of outflow of resources is not remote. 12. Segment Reporting b) c) 10.7 of part-A of this schedule .2 Deferred tax is recognized.3 a) Contingent liability is disclosed in the case of: a present obligation arising from past events. are included under “Other Unallocable Expenditure”. 9.1 Segment revenue includes interest and other income directly identifiable with / allocable to the segment. Unallocable assets 122 12. 8.1 Provisions are recognised for liabilities that can be measured only by using substantial degree of estimation if: a) b) c) the Bank has a present obligation as a result of a past event.1 As at each Balance Sheet date. required for impairment loss recognized in the previous periods. 1961 and based on expected outcome of assessments/appeals.2 Impairment loss is recognized when the carrying amount of an asset exceeds recoverable amount.2 Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result. being the difference between taxable income and accounting income for the year and quantified.3 Income.4 Other deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which. 9. 11. 9. 9.6 Change in accounting policy: There was a change in accounting policy during the year in case of capitalization of fixed assets. a probable outflow of resources is expected to settle the obligation.4 Contingent assets are neither recognized. 10. The details are indicated in para 3. required.5 Provision for Wealth Tax is made. 12 Provisions. on timing difference. 12. Taxes on Income 9. expected in respect of expenditure.6 and 3. 10.

while accounting the results for the financial year 2011-12.08 (54.49 crore (` 54.85 crore). Revival Reform Restructuring of Handloom package (` 10. The expenditure recoverable from Government of India / international agencies as per Schedule-14 of balance sheet amounting to ` 28. 8. IFAD Priyadarshini (` 1.10 crore) which were shown as debit balances in Schedule-4 in the respective funds in the previous year.96 crore). IGWDP Maharashtra (` 7.81) 2044. IGWDP Rajasthan (` 2. Financial Inclusion Fund and Financial Inclusion Technology Fund has been credited to the respective funds. KfW NB IGWDP–(Andhra Pradesh.06 (2208. being the difference between the cost of borrowing by NABARD and the refinance rate. In accordance with the Memorandum of Understanding entered into with the Swiss Agency for Development Cooperation. The loans granted out of the fund have been adjusted with direct loans. 3. NE council fund for miscellaneous training (` 0. 12. 2.00 crore between net deferred tax assets of ` 71. 2012. 11. 13. Government of India advised the bank that the short term loans extended by the Long Term Co-operative Credit Structure (LTCCS) are not covered under the interest subvention scheme. Further. The Provision for Pension is made after considering the employer’s contribution to PF maintained with RBI as per the records available with the Bank as on 31 March 2012. the bank had refunded a sum of ` 11. Income under the head ‘Income from Investment Operations / Deposits’ includes ‘Discount and Commission’. as detailed below: . An amount of ` 4. IGWDP Gujarat (` 0. 7.76 crore includes debit balance of various funds viz. accretion/ income and certain expenditure under UPNRM have been charged to the fund. for financing Seasonal Agricultural Operations. during the year. As this amount has been identified for refund at the time of audit. the “Interest Differential Fund” is to be utilized for certain specified purposes. has been reduced from interest and financial charges and shown as accrued interest.00) (` in crore) Book Value 34. in accordance with AS 22 “Accounting for taxes on Income”. interest at the rate of 6. Other receipts includes ` 78. The said interest is calculated based on the mid-month average outstanding of the respective funds.80 crore to the Central Government in May. The Bank.15 crore and ` 233.00) 2071.00% (6. and Multi Activity Approach for Poverty Alleviation (MAPA) BAIF– (Sultanpur and Rae Bareli).49 crore) received/receivable from GoI towards administration charges on providing refinance under interest subvention scheme to SCBs and RRBs.57% (8. Watershed Development Fund.52 crore (` 989. IGWDP Andhra Pradesh ( ` 5. NOTES FORMING PART OF THE ACCOUNTS Particulars Pledged for Business Segment (Securities) Pledged for Business Segment (Collateralised Borrowing and Lending Obligation) Face Value 35. 9.25 crore). Maharashtra and Rajasthan) and KfW NB IX Adivasi Development Programme has been credited to respective funds based on respective agreements.00%) per annum on unutilised balances of RIF. service charges and other receipts made out of Rural Innovation Fund (RIF) are being credited to the Rural Promotion Fund (RPF).00 (55. Accordingly.34crore). the same has been fully provided for. repayment of loan. Investments in Government securities include the following securities pledged with Clearing Corporation of India Limited as collateral security for Business segments: 123 10 Interest at the rate of 6.B. Cattle Development Programme (Uttar Pradesh & Bihar). 4.88 crore).00 crore). 5.72 crore).63) 1. Subvention received/receivable from GOI amounting to ` 1475. In terms of the agreement with KfW. 6.29 crore chargeable as penal interest on account of default in repayment by MPSCARDB has been waived during the year. Gujarat. recognized in the Profit and Loss account the difference of ` 162.00 (2257. In terms of TAWA Command Area Development Project Agreement.15 crore as at 31 March 2012 and 31 March 2011 respectively.80%) per annum on unutilised balances of Micro Finance Development and Equity Fund.

‘Land’ and ‘Premises’ include ` 34. as the Bank has decided not to withdraw the said reserve. Gratuity and Leave Encashment. which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. 18. Pursuant to the directives of RBI. However. are treated as under: a) classified as Investments and shown in Schedule – 11 under the head ‘Debenture and Bonds’. The bank with effect from 2 September 2011. The value of Allotment Letters / Debenture Scrips. . The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method. 1961.35 5. 124 21.1 Net Effect on Revenue A/c due to change in Capitalisation Policy (` in crore) Amount taken to Revenue A/c as per New Capitalisation Policy (Cost of items under Computer Installations. has decided to provide financial support to SCARDBs in the form of refinance loans. which are defined benefit plans.74 1.18 b) Interest earned on the same is shown as a part of ‘Interest received on Loans and Advances’ in the Profit and Loss Account. and Depreciation on Software which is capitalised) 2.61 7. the bank has filed an appeal against the taxability of NABARD for the AY 2002-03 with Income Tax Appellate Tribunal. Provision for Deferred Tax on account of Special Reserve created u/s 36(1)(viii) of the Income Tax Act.1 Defined Benefit Plans Employees Retirement Benefit plans of the bank include Pension.74 0. aggregates to NIL (` 238.(` in crore) Sr.77 crore (` 29.15 21. Disclosure required under AS 15 (Revised) on “Employee Benefits” is as under: 21.22 crore was additionally charged as depreciation in the current year for assets purchased in earlier years (2009-10 and 2010-11) for items under Computer and Communication devices and electrical installations.95 0.45 Net Effect in Revenue A/c due to change in Policy 1. as at the year end.33 An amount of ` 0.77 30. 16.20 233. The salaries and allowances for the year amounting to ` 442.6 of part-A of the schedule was as under: 19. 20.93 1. and cost of Software) Computer F&F Other CIOE Software Total 19. Deemed Advances for the purpose of IRAC norms.65 31 March 2011 181. F&F & Other CIOE which are charged to Revenue A/ c. treating them as ‘deemed advances’.97 0.87 7.00 71. is not considered necessary. F&F & Other CIOE which would have been capitalised. 1 Provision for Retirement Benefits made in the books but allowable for tax purposes on payment basis Depreciation on Fixed Assets Amortisation of G Sec Total 31 March 2012 49. The tax liability of the bank for the Assessment Year 2002-03 amounting to ` 373. 19.33 crore towards salary arrears. Deferred Tax Assets No.12 Impact due to change in Depreciation rate: 17.19 0. Amount that would have been charged to Revenue A/c as per Previous Capitalisation Policy (Depreciation on items under Computer Installations.38 -3. the project loans provided to SCARDBs by way of subscription to the Special Development Debentures (SDDs) floated by these agencies.92 0.88 crore) paid towards Office Premises and Staff Quarters for which conveyance is yet to be completed.15 crore) c) d) 2 3 21. 15.50 0.15 crore was assessed by the Income Tax department and fully paid by the bank.15 14. The net impact due to change in accounting policy as per para 12. instead of subscribing to the Special Development Debentures floated by them. capital adequacy and computation of ratios etc.73 1. yet to be received.63 crore was arrived at after deduction of excess provision of ` 5.2 0. due to change in Depreciation rate.

70) (17.50% (7.67) (-6.00%) Pension 33.54) (9.12 (17.57) 1556.01 -8.39) 317.00%) 1. Actuarial assumptions: Pension 1994-96 (Ultimate) 8.25%) 5.03 (144.77 11.66) 1223.67 (21.77 11.03) 1311.61 (16.25) (8.10) (-45.03) 153.42 100.76) 33.76) 100.27 (26.82 (-21.70) (8.00) -21.87 (1223.25%) 5.68 (242.88) 137.01 (18.53 20.95 (6.26) 14.76 (274.11 crore) towards PF for pension optees available with RBI.92) Gratuity (funded) 239.a.00%) Leave Encashment 1994–96 (Ultimate) 8.99 (6.14* (14.82 (227.03 (144.85) -21.90 -83.62 (-16.63) 3.00% (1.54 (172.87 (1223.00%) Gratuity 1994–96 (Ultimate) 8.42) -31.90 (79.25%) 5.69) Particulars Mortality Table (LIC) Discount rate (per annum) Salary growth (per annum) Withdrawal rate 125 .95 4.67) -13.63 (934.25 (288.50% (7.75% (8.80 (22.53 (16.00% (1.90) 20.68 (242.00% (1.94) 239.65 Leave Encashment 3.22) @ Includes the Bank’s contribution of ` 363.89 Encashment.16) 283.57) 260. $ Represents the amount invested with Insurance companies towards the liability for Leave * Negative amount is shown as other assets under Schedule-14 c.88 (117.32 (207.00%) 1. Pension Gratuity Leave Encashment 144.90) (18.10 Gratuity 17.42 -11.72) Leave Encashment (Funded) 153.75% (8.65) (0.54) (9.11) @ 245.03 (958.42 (22.92) 7.17 (-12.83) -37.88) Amount recognized in the Balance Sheet as on 31 March 2012: (` in crore) Pension (Partly Funded) 1556.01) 242. Reconciliation of opening and closing balances of defined benefit obligations: (` in crore) Particulars Present value of defined benefit obligation at the beginning of year Current Service Cost Interest Cost Actuarial gain/ loss Benefits paid Present value of defined benefits obligations at the year end b.16) 12.75% (8.57 (221.50% (4.76) (79.25) -8. Particulars Present value of defined benefits obligations as at the year end Fair value of plan assets as at the year end Liability recognized in the Balance sheet as at the year end (1.10) 220.00%) 1.79 crore (` 288.66) $ 15.20) 17.14 (143. Expenses recognized in the Profit and Loss Account during the year: (` in crore) Particulars Current Service Cost Interest Cost Net Actuarial gain/ loss Expected return on Plan Assets Expense recognized in the statement of Profit & Loss d.

5 The income of ` 22.44 crore being the provisions for pension held in the books of the bank as on 31 March 2011 to the Trust.6460 Book Value 50.01 50.24 2010-11 3.01 30.01 30.01 30.2930 276239. (` in crore) Sr.55% (21. The contribution made for the pension optees forms part of the plan assets of pension scheme.01 50.01 30.00 0.11 126 . During the year 2011-12 the bank has created NABARD Pension Fund Trust and transferred a sum of ` 934.01 30.00 2. In the opinion of the Bank’s management.37 0. 24. The total contribution charged to Profit and Loss account during the year is ` 12.01 30.2 The estimates of rate of escalation in salary considered in actuarial valuation.01 30. Depreciation Revenue Expenditure Total 2011-12 0. 21.0720 284381.3680 25172008. take into account inflation.01 30.01 50. of units 0 0 0 0 0 0 0 0 0 0 0 0 Book Value 0 0 0 0 0 0 0 0 0 0 0 0 Market Value 0 0 0 0 0 0 0 0 0 0 0 0 As at 31 March 2011 No. 1 2.8670 28065186.27 2010-11 2. The movement in Contingent Liability as required in AS 29 “Provisions. Particulars No.5110 310661. promotion and other relevant factors including supply and demand in the employment market. Prior period items included in the Profit and Loss account are as follows: (` in crore) Sr. Contingent Liabilities and Contingent Assets” is as under: (` in crore) Particulars Opening Balance Addition during the year Deletion during the year Closing Balance 2011-12 0.78 crore recognized during the year 2011-12 on investments earmarked towards leave encashment includes the overall impact for the financial years 2010-11 and 2011-12.01 30.01 30.01 30.87 crore) 22.01 30.5170 2069242.01 50. seniority.76%) as against a minimum of 9% as stipulated by RBI.24 0.01 390.01 30. 21.8430 2356602.01 390.11 Market Value 50.68 crore (` 11.00 21.4 The above information is certified by the actuary and the provision for pension is recognized in the profit and loss account after considering the outstanding balance of the Bank’s contribution to the Provident Fund of pension optees. Investments in Mutual Funds are as under: 26.895 0.01 30.01 30.895 The bank contributes a defined sum of 10% on the basic salary for both pension optees and non pension optees every month towards Provident Fund.00 3.6900 19254837.27 5. 27. Capital adequacy ratio of the Bank as on 31 March 2012 was 20. 21. there is no impairment to assets to which AS 28 – “Impairment of Assets” applies requiring any provision. Name of the No Mutual Fund 1 2 3 4 5 6 7 8 9 10 11 Kotak Mahindra ICICI Prudential Canara Robeco IDFC UTI–Money Market Tata DWS SBI IDBI Peerless Taurus Total As at 31 March 2012 No.37 0.3 The aforesaid liabilities include liabilities of employees deputed to subsidiaries.01 30.00 5.21.7780 285224. 23.00 0.6 Defined Contribution Plan: 25.7263 25159975. of units 31178095.

04 crore) relating to staff advances.2 Asset Quality and Credit Concentration (a) Net NPA position 31 March 2012 0. Small and Medium Enterprises Development Act 2006.30 Non Performing Assets Investments (Net) Income Tax Total (d) Particulars On – Balance Sheet Items Off – Balance Sheet Items (d) Pattern of Capital contribution as on the date of the Balance Sheet: NABARD has received an amount of ` 1000 crore from Government of India vide their letter no.001 100.2/01.00% 99.000 0.93 460. 29.00 100.67% 99.44 19.56 100. As per the information available with the Bank.00 37.05 Movement in Net NPAs (` in crore) Particulars (A) Net NPAs as at beginning of the year (B) Add: Additions during the year (C) Sub-total (A+B) (D) Less: Reductions during the year (E) Net NPAs as at the end of the year (C-D) 2011-12 29.00 68.83 7.42 1.00 494.00 Total 3000. 29.02249 31 March 2011 0.33% : 0.74 14. 127 .43 1.FID.RBI/2011–12/68 DBOD.13 31 March 2011 21.55 19.76 20.33% 31 March 2011 20.02136 Particulars Percentage of Net NPAs to Net Loans & Advances (b) Asset classification 29.02 165265.980.44 52.No.15 0.945 139459.980.53 (%) 2010-11 Amount (%) Particulars CRAR Core CRAR Supplementary CRAR 99.00 1. Consequent to this the shareholding of Government of India and RBI in the Paid up capital of NABARD as on 31 March 2012 was at 99.013 0.001 (b) Subordinated Debt (` in crore) 31 March 2011 Nil Total 139528.049 0.33 29.13 1.87 30.00 1.041 0.40 99. F.44 63515.83 (c) Risk weighted assets (` in crore) 31 March 2012 31 March 2011 80736.00/2011–12 dated 01 July 2011.00 0.1 (a) Capital Capital to Risk–weighted Assets Ratio (CRAR) (Percent) 31 March 2012 20. (` in crore) Contributor Reserve Bank of India 31 March 2012 20. there are no dues payable under Micro.FIC.19 68.000.00 579.00 100.950 0.000 0.72 19.33 (` in crore) 2011-12 Classification Standard Sub-standard Doubtful Loss Amount 165174.00% 2.02 0.00 32.11 22.55 20. The following additional information is disclosed in terms of RBI circular No.16 22.No.44 455.21 1.00% Government of India 2.83 2010-11 0.07 crore ( ` 0.90 1.02.28.000 Particulars 31 March 2012 Amount of subordinated debt raised and outstanding Nil as Tier II Capital (c)Provisions made during the year (` in crore) Provisions against Standard Assets 2011-12 78.00% Note: Net NPA includes ` 0.20/16/2010AC dated 30 March 2012 towards Share Capital.67% as per details given below.15 2010-11 32.32 37.

49) 79.30 (29204.17) 25013.00) 181342.00 (0.60 2010-11 Credit Exposure as % to Capital Funds 128.00 54.00 (0.03 (39438.53 (29124.58 (158248.83 30.88 0.4 Operating results Particulars (a) (b) (c) (d) (e) (a) Interest income as a percentage to average working funds Non interest income as a percentage to average working funds Operating profit as a percentage to average working funds Return on average Assets (%) Net Profit per Employee (Rs.(e) Credit exposure as percentage to Capital Funds and as percentage to Total Assets 2011-12 Credit Exposure as % to Capital Funds Total Assets 8.63 (` 623.74) 32663.78 (502.17 (4410.71 (36715.44) 36520.92) 181342.73 16.22 0.08 32.52) More than 7 years 4660.10 1.80 (39518.77 (18589.81) # Net of provision made as per RBI directives on Standard Assets as well as for diminution in value of Investments aggregating to ` 732.00 23.17 (4410.24 Not Applicable 91.26 (` in crore) 2010-11 32.75) 57641.00 (0.25 0.96) 0.64 Total Assets 11.97 (68088.65) Foreign currency assets 0.65) Rupee Liabilities 29159.39 14.00) Foreign currency liabilities 39. Item No 1 2 Rupee Assets Less than or equal to 1 year More than 1 year upto 3 years 45084.78 (64.70) 34.88 (39.53 (13478.58 (238.82) 0.17) 0.58 (158248.44) 0.42) 36789.59 (36754.24 (40360. in crore) Provision for Non Performing Assets (Loan Assets) 2011-12 39.00) Total Assets 82177.00) 34177.97 (68088.23) More than 5 years upto 7 years 15242.64) 181342.00 (0.00) 15242.45 crore) 29.17) 502.67 (31910.72) 79.00) 45084.67 378.54 (33943.39 2011-12 6.27 29.53 (13478.82) 25048.92) Total Liabilities 29199.53 0.69) Total # 3 4 82177.27) 268.47) More than 3 years upto 5 years 34177.98 0.35 Not Applicable 331.59) 32583.67 (31910.58 (158248.59 Category I Largest Single Borrower II Largest Borrower Group III Ten Largest Single Borrowers for the year IV Ten Largest Borrower Groups (f) Not Applicable Not Applicable Credit exposure to the five largest industrial sectors as percentage to total loan assets: Not Applicable 29.80 (157746.87 0.77 (79.34 39.3 Liquidity ( ` in crore) Maturity pattern of Rupee Assets and Liabilities and Maturity pattern of Foreign Currency Assets and Liabilities Sr.99 (18524.36 2010-11 6.24 (40360.82) 180839.96) 57562.00 (0.00 (0.07 1. write back of excess provision Closing balance at the close of financial year 128 .00) 4660.44 0.77 (79.5 Movement in the provisions Particulars Opening balance as at the beginning of financial year Add: Provision made during the year Less: Write off.59) 0.12 (34181.

11 0. Particulars No.00) 109. from Investment Fluctuation Reserve Account during the year C D Less (i) Write off / Write back of excess provision Sub Total [A+B (i)+B (ii)] 0.08 29.6% has been made on these assets as per RBI guidelines. 129 4 Likely impact of one percentage change in interest rate (100*PV01) a) on hedging derivatives b) on trading derivatives 5 Maximum and Minimum of 100*PV01 observed during the year a) on hedging b) on trading NA NA NA NA 8.00 3.15 0. to Investment Fluctuation Reserve Account Sub Total [D] E Closing balance as at the close of financial year (C-D) 29.70 crore 29.11 Corporate Debt Restructuring (CDR) There are no loan accounts subjected to Corporate Debt Restructuring during the current year.(b) Provision for depreciation in investments (` in crore) Particulars 2011-12 2010-11 3. All the said five loans are classified as Standard Asset and an additional provision at the rate of 1.8 Forward Rate Agreements and Interest Rate Swaps : NIL (NIL) 29.13 Exposures where the FI had exceeded prudential exposure limits during the year: NIL (NIL) . 29.12 Disclosure on risk exposure in Derivatives The Bank does not trade in derivatives. 1 Derivatives (Notional Principal amount) A) For Hedging B) For Trading 2 Marked to Market Positions [1] a) Asset (+) b) Liability (-) 3 Credit Exposure [2] 129.41 NA NA NA 632.60 crore) have been rescheduled.33 (592.37 (ii) Transfer. The quantitative disclosure in this regard is as under: (` in crore) Sr.55 (89. ` 502.00 1.15 3.37 crore has been made during 2011-12 towards sacrifice in interest element on restructuring of MPSCARDB. The value of outstanding principal amount of hedge contract at the year-end exchange rate stood at ` 632. The Bank does not have any open exposure in foreign currency.37 31.77 crore.33 crore and the value of outstanding principal liability in the books of account stood at contracted value i.10) NA NA NA Currency Interest Rate Derivatives Derivatives A Opening balance as at the beginning of the financial year B Add (i) Provisions made during the year (ii) Appropriation. if any.70@ NA NA NA @ If MIBOR rate decrease by 100 bps across tenure MTM gain would be reduced by ` 8.30 33.7 Assets sold to securitisation company / reconstruction company: NIL (NIL) 29.25 crore (including loans to MPSCARDB-outstanding ` 770.00 0. As per IRAC norms provisions for ` 51.63 million Euro and interest thereon for the entire loan period.e.44 2.45) (0.30 0. if any.10 Investments in Non Government Debt Securities: NIL (NIL) 29. Consequent upon hedging of foreign currency borrowings the same is shown at contracted value as per the Swap agreement.74 1.00 35. five loan accounts outstanding to the extent of ` 788.9 Interest Rate Derivatives: NIL (NIL) 29. it has hedged its liability towards bor rowings from KfW Germany to the extent of 93.52 1.81 0. However.6 Restructured accounts During the current financial year.

Ex-Chairman Dr.47) 0.13) 123. C. No.28) (7) 77.00) 0. Sarangi Shri Rakesh Singh Dr.00 (48.37) 3283.80) 3100. Prakash Bakshi .80) 3100.00) 'Unrated' Securities held 'Unlisted' Securities (1) 1 2 3 4 5 6 7 (2) PSUs FIs Banks Private Corporate Subsidiaries/Joint ventures Others (Net of Provision) including Mutual Funds Provision held towards depreciation Total (3) 180.15 Sr.03) 130 .Ex-Chairman Shri Rakesh Singh .13 (79.27 (80.37 (23.24) (6) 80. K G Karmakar 0.00 0.00) 41.80) 25.42 (386.59 (0.04 (53.Ex-Chairman Key Management Personnel.34) 123.00) 41.80) 25.Chairman Dr.47 (2262. 29.09 (0. Related party relationships have been identified by the management and relied upon by the auditors.29.00 (0. Sarangi .92 (10.13) 48.14 Related Party Transactions List of Related Parties: Key Management Personnel: 1.119 Outstanding Shri U.59 (3.00 (150.00) 216.Managing Director Nature of Transaction Remuneration including perquisites Remuneration including perquisites Remuneration including perquisites Remuneration including perquisites Amount of transaction during the year 0.00 (123.Ex-Chairman Key Management Personnel-Chairman Key Management PersonnelEx.35) 0.01 (2636. or provided for during the year.00 0.00) 41.19 (3.09 (0.00) 211.107 0. 4.00 (0.020 0. the details of the transactions with other state controlled enterprises are not given.00 (150.37 (23. Issuer Issuer categories in respect of investments made ( ` in crore) Amount Investment made through private placement (4) 154.13) 48.47 (2262.35) 560.00) 16.92 (10.082 0. C. 3.37) 3658.47) 3.88 (79. Prakash Bakshi Dr.28) 'Below investment grade' Securities held (5) 0.00 (0.00 0.37 (23. Name of the Party Nature of Relationship Key Management Personnel.13 (2410. Shri U.00) 16. 2.00) 41.Ex-Managing Director (` in crore) As the Bank is state controlled enterprise within the meaning of AS-18 "Related Party Transactions".00 (123.00) 0. K G Karmakar . in respect of the related parties have been written off/back.00) 216.37 (23.00 (0.00 No amounts.25 (19.

00 0. Exposure and NPAs (a) Concentration of Deposits (` in Crore) 2011-12 Total Deposits of twenty largest depositors Percentage of Deposits of twenty largest depositors to Total Deposits of the Bank (b) Concentration of Advances (` in Crore) 2011-12 2010-11 Total Advances to twenty largest borrowers Percentage of Advances to twenty largest borrowers to Total Advances of the Bank (c) Concentration of Exposure (` in Crore) 2011-12 Total Exposure to twenty largest borrowers/ customers Percentage of Exposure to twenty largest borrowers/customers to Total Exposure of the bank on borrowers/customers (d) Concentration of NPAs (` in Crore) 2011-12 Total Exposure to Top four NPA accounts 57.00% Particulars Gross NPAs as on 1st April of par ticular year (Opening Balance) 2011-12 2010-11 69.17 Disclosure on Repo transactions: NIL (NIL) 29.95 75077.24% 53.23 Sub-total (A) Less:(i) Upgradations (ii) Recoveries (excluding recoveries made from upgraded accounts) (iii) Write-offs Sub-total (B) Gross NPAs as on 31st March of following year (closing balance) (A-B) 0.22 Off-balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms): NIL (NIL) 29.32% 29.35 0.02 0.00 0.00% 89.00 0.75 50.19 Sr. Advances. cofinance loans and loans given to voluntary agencies/ 131 .17 73761.20 Movement of Gross NPAs (` in Crore) 90.39 5.19 Additions (Fresh NPAs) during the year 22.23 Information on Business Segment (a) Brief Background The Bank has recognized Primary segments as under: i) Direct Finance: Includes Loans given to state governments for rural infrastructure development. Sector No Sector-wise NPAs Percentage of NPAs to Total Advances in that sector 2011-12 2010-11 0.00 54.95 75077.00 72.46 0.29.75 52. Medium and Large) Services Personal Loans-Staff Loans 85859.00 0.00 7.25 29.19 50.70 76.88% 50.00 0.00 91.42 91.71 2010-11 86213.21 Overseas Assets.84 0.73 25.24 69.16 Non performing investments: NIL (NIL) 29.40 1.81% 2010-11 29. NPAs and Revenue: NIL (NIL) 29.06 1 2 3 4 Agriculture and allied activities Industry (Micro & Small.40 2010-11 50.18 Concentration of Deposits.42 87413.

567.00 (0.409.49) 1. etc.82.05) 18.316. Information on Primary Business Segment iii) Treasury: Includes investment of funds in treasury bills.02 (15.00 (0.96) 21.29 (132.17 (266. government securities.63) 2.58.643.00 (912.68) -935.046070 Mumbai Date : 26 May 2012 Prakash Bakshi Chairman H R Khan Director Dipankar Gupta Director K.86) 1.16 (18. iv) Unallocated: Includes income from staff loans and other miscellaneous receipts and expenditure incurred for the developmental role of the bank and common administrative expenses. Since the operations of the Bank are confined to India only there is no reportable secondary segment.37 (268.35 (66.59) 94.22 (22.00 (0.26) (c) 30.38 (86.32 (4. (b) (` in crore) Direct Finance Segment Revenue Segment Results Total carrying amount of Segment Assets Total carrying amount of Segment Liabilities Other Items: Cost to acquire Segment Assets during the year Amor tization & Depreciation Non Cash Expenses 0.71) 291.00 (0.401.320. short-term deposits.54 (69.00) 0.34 (100.00) 0.00) 0.00) 129. 31.21 (1.728.32) 76190.01) 2251.47) Unallocated 32.424.872.77 (74.89 (20.21) 13.87) Refinance 5. 107564W Ashok Rajagiri Partner M No.82. Figures in brackets pertain to previous year.63 (1.638.97 (1.226.07 (2.823.202.16 (18.61 (68. As per our attached report of even date P .086.346.54) Total 10978.22 (22.22) 21.58) 129.075.085.198.24) 1302. as refinance against the loans disbursed by them to the ultimate borrowers. Commercial Banks.908.98) 4. Padmanabhan Chief General Manager Accounts Department Mumbai : 26 May 2012 M L Sharma Director 132 .00 (0.075.00 (0.78 (4.376.61) 246.58.08) 0.22) 21.21 (1.58) 273. Previous year's figures have been regrouped / rearranged wherever necessary.80 ( -0.21) 18.696.13 (32. Banks.90) 0.072. S. Regional Rural Banks etc.00) -0.502.50 (9.00) 15.02 (943.03 (-924. L and Development Banks.62 (-0.39) Treasury 1. ii) Refinance: Includes Loans and Advances given to State Governments.26) 1.872. State Coop. Parikh & Associates Chartered Accountants FRN .69) 71.27) 84520.non-governmental organisations for developmental activities.

56.53 1779.National Bank for Agriculture and Rural Development Cash Flow for the year ended 31 March 2012 Particulars (a) Cash flow from Operating activities Net Profit as per Profit and Loss a/c before tax Adjustment for: Depreciation Provisions and Amortisations Provision for Non performing Assets Provision for Standard Assets Provision for sacrifice in interest element of Restructured Loan Profit / Loss on sale of Fixed Assets Interest credited to various Funds (including addition/ adjustment made to Interest Differential Fund) Other Expenses Income from Investment (including Discount Income) Expenditure from various Funds Operating profit before changes in operating assets Adjustment for net change in: Current Assets Current Liabilities Increase in Loans and Advances (Including Housing Loan & Other Advances to Staff Cash generated from operating activities Payment of Income Tax Net cash flow from operating activities (b) Cash flow from Investing activities Income from Investment (including Discount Income) Increase / Decrease in Fixed Asset Increase / Decrease in Investment Net cash used / generated from investing activities (c)Cash flow from financing activities Grants / contributions received Proceeds of Bonds Increase / Decrease in Borrowings Increase / Decrease in Deposits Share capital Net cash raised from financing activities Net increase in cash and cash equivalent (A)+(B)+(C ) Cash and Cash equivalent at the beginning of the year Cash and cash equivalent at the end of the year 1.43 0 -1346.19. Cash and cash equivalent at the end of the year includes : Cash in hand Balance with Reserve Bank of India Balances with other Banks in India Remittances in Transit Inter fund transfer Collateralised Borrowing and Lending Obligations Total As per our attached report of even date P .32 -3283.28.50 16.02.87.00 51.52.85 -5492.93 799.45 1134.65.23 78. 107564W Ashok Rajagiri Partner M No.80.28 -23158.96.63.54 0 230.49.91.80.73 1762.95.79.72 1331.16 6783.26 1346.90.02 22.83.56 2.32 -24801.51 0 25993.98 2.91 628.64 118.31 2.89.38 2011-2012 9 1168.75 1762.26 801.33.29 -426.07 -373.92.42.37 2503.83 -4430.62.04 -25661. S.96 -19035.46.94 2133.37.40 694.39. K.86.23.78.00 -80.85.66 2010-2011 7 38.00 12.24.38.07.97 -25228.34 32.22.80.63 0 -938.66 (B) Previous year’s figures have been regrouped/ rearranged to confirm to the current year’s presentation.00 0 -8.63 -1161.84.37.00 14.54.55.93 21. Padmanabhan Chief General Manager Accounts Department Mumbai : 26 May 2012 M L Sharma Director 133 .79.56 1762.18.65 1779.70 1000.74.70 12621.58 139.55.91 379.50 681.68.32.77.57.85 -17.35 943.77.80.046070 Mumbai Date : 26 May 2012 Prakash Bakshi Chairman H R Khan Director Dipankar Gupta Director (C) 1848.23.49 (` in thousands) 2010-2011 1823.41 12780.46 -23697.19 3925.36.00 23912.78 -2072.37 0 228.44.00.37.46.39.74.38 (A) 2011-2012 2251. wherever necessary.07.33 -16.44.70 11795.02.88.80. Parikh & Associates Chartered Accountants FRN .80 -3352.00 4.65.41 -2087.64.90 -539.

NABFINS) 2011-2012 134 . ADFT. ABFL.Consolidated Balance Sheet Profit and Loss Account & Cash Flow of NABARD & its Subsidiaries (NABCONS.

in the case of the Consolidated Cash Flow Statement.. We believe that our audit provides a reasonable basis of our opinion. We have conducted our audit in accordance with auditing standards generally accepted in India. Mumbai . An audit also includes assessing the accounting principles used and significant estimates made by the management as well as evaluating overall financial statements.400 009. in the case of the Consolidated Profit and Loss Account of the consolidated results of operations of the Bank for the year ended on that date. any adjustments to their balances could have consequential effects on the attached Consolidated Financial Statements. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are prepared. 2012 For and on behalf of P . We report that on the basis of the information and explanations given and on the consideration given of separate audited/ certified financial statements of the Bank and its Subsidiaries and subject to our comment in Para 3 above.: 046070 HO : 501. Place: Mumbai Date: May 26. 4. we are of the opinion that the said consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India. 5. 3. Parikh & Associates Chartered Accountants Firm Registration No. 107564W Ashok Rajagiri Partner. We have examined the attached Consolidated Balance Sheet of NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT (the ‘Bank’) and its Subsidiaries as at March 31. of the state of affairs of the Bank as at March 31. Parikh & Associates Chartered Accountants Auditors' Report on Consolidated Financial Statements To the Board of Directors NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT 1. We report that the Consolidated Financial Statements have been prepared by the Bank in accordance with the requirements of Accounting Standard (AS) 21 “Consolidated Financial Statements” issued by the Institute of Chartered Accountants of India and on the basis of the separate audited/certified financial statements of the Bank and its Subsidiaries included in the consolidated financial statements. Membership No. and NABARD Financial Services Ltd. These financial statements have been certified by the managements of the respective subsidiary companies and have been furnished to us. In our opinion. Website : www. 2012. off Narsi Natha Street. in accordance with an identified financial reporting framework and are free of material misstatement. Fax : 23415455. the Consolidated Profit & Loss Account and the Consolidated Cash Flow Statement for the year ended on that date annexed thereto. The total Assets and total Revenues in respect of these subsidiaries are ` 353. in the case of the Consolidated Balance Sheet. 2012. ii. 2.90 crore respectively.P. in all material respects. i. These financial statements are the responsibility of the Bank’s management. in so far as it relates to the amounts included in respect of the Subsidiaries in Consolidated Financial Statements is based solely on such management certified financial statements. Agri Development Finance (Tamil Nadu) Ltd. of the consolidated cash flows of the Bank for the year ended on that date.65 crore and ` 46. Our responsibility is to express an opinion on these financial statements based on our audit. 23437853.com 135 . The financial statements in respect of two subsidiaries viz. the impact of which is not ascertained. being unaudited. We did not carry out the audit of financial statements of subsidiaries of the Bank. and iii. Tel : 23443549.. Sujata.pparikh.

03. 107564W Ashok Rajagiri Partner M No.09.80.09 5605.89.95.55.75.23 38582.53 K.91 152593.77.39 6349.64 16045.20.85 82776.78 657. Parikh & Associates Chartered Accountants FRN .00.46 182145.12 95397.24 2484.07 182145. Donations and Benefactions Other Funds Minority Interest Deposits Bonds and Debentures Borrowings Current Liabilities and Provisions TOTAL FUNDS AND LIABILITIES PROPERTY AND ASSETS 3000. S.49. Padmanabhan Chief General Manager Accounts Department Mumbai : 26 May 2012 M L Sharma Director 136 .37 225.50 10881.77 3431.66.94.36.24.71.69.30.00 13442.00.89.64 4328.66 229.06.89.37 19305.67.47.046070 Mumbai Date : 26 May 2012 Prakash Bakshi Chairman H R Khan Director Dipankar Gupta Director 8673.99.69 16058.00 138.40 21.00.84 7681.National Bank for Agriculture and Rural Development Consolidated Balance Sheet as on 31 March 2012 (` in thousands) Particulars FUNDS AND LIABILITIES Capital Reserve Fund and Other Reserves National Rural Credit Funds Funds Out of Grants received from International Agencies Gifts Grants.91 18168.94 4157.92 126031.2011 Cash and Bank Balances Investments Advances Fixed Assets Other Assets TOTAL PROPERTY AND ASSETS As per our attached report of even date P .96.53 26787.03.56 2601.83 2529.50 2000.00 11888.17.29.75 158978.00 139.55.85 158978.24 32.50.89.89.00.50.48.2012 As on 31.83.53 As on 31.

93 1286.73.94.99 1286.56.00.85 21.34.24.27 1644.03 8170.69 1713.15.23 11010.99 202.06 1135.00 2.00.00 5.47 145.38 1488.00 2.19.55 161.48.93.77.25.65.79.37.40 20.35.93.03 310.56.00 50.56.09.68 1835.34.42.54 0 808.54 459.26. 1961 National Rural Credit (Long Term Operations) Fund National Rural Credit (Stabilisation) Fund Co-operative Development Fund Research & Development Fund Investment Fluctuation Reserve Producers’ Organization Development Fund Rural Infrastructure Promotion Fund Financial Inclusion Technology Fund Farmers Technology Transfer Fund Farm Innovation and Promotion Fund MFDEF Reserve Fund Reserve Fund Total 2010-11 9516.58 137 .62 0 107.38.73 69.15.58 360.00.20 33.20.59 1488.03 8743.24 1354.30 1713.88 6194.00 6.92 7388.20 463.25.73 1644.00.57.08.54 22.00.National Bank for Agriculture and Rural Development Consolidated Profit and Loss Account for the year ended 31 March 2012 (` in thousands) 2011-12 Income: Interest Received on Loans and Advances Income from Investment operations Discount Received Other Receipts TOTAL INCOME Expenditure: Interest and Financial Charges Establishment and other expenses Depreciation Provisions TOTAL EXPENDITURE Profit before Income Tax Provision for Income Tax Deferred Tax Asset Adjustment Profit after Tax Share of Profit / Loss in Subsidiaries attributable to Minority Interest Profit available for Appropriation Appropriations: Profit as above Add: Withdrawals from various funds against expenditure debited to Profit & Loss Account Total Profit Available for Appropriation Transferred to: Special Reserve u/s 36(I)(viii) of the Income Tax Act.13.94.04.55.73.99 1646.92 88.30.39.49 116.79.00 2.05.20.00 10.85 0 139.00 10.85 44.00.00.07.91.32.00 25.67.08 9224.36 0 1247.67.32 17.16 35.00.76.26.98 84.65 50.44 1045.10.67.00 1.79 2267.42.00.30 27.18 946.00.42 0 0 45.33 7530.30 1287.67.00 10.

02 (15316.49) 1638.10) 0. are unaudited.00 (0.54 (69320.77 (74643. Previous Year figures have been regrouped / rearranged wherever necessary As per our attached report of even date P .89 (2583.54) 21.67 crore) included in the Consolidated Financial Statement.13 % (0.62 (-0.00 (912.47) Unallocated 52.00 (0.14 (133.51) Note: There are no reportable secondary segments for the bank and its subsidiaries 8. 7.38) 71768. Ltd. Padmanabhan Chief General Manager Accounts Department Mumbai Mumbai : 26 May 2012 M L Sharma Director 138 . Financial statement in respect of Agri Development Finance (Tamilnadu) Ltd.00) 129.59) 94696. Disclosures as required under AS-17 “Segment Reporting” in consolidated financial statements are as under: (` in crore) Financial Year 2011-12 (Consolidated) Segment Revenue Segment Results Total carrying amount of Segment Assets Total carrying amount of Segment Liabilities Other Items : Cost to acquire Segment Assets during the year Amortization & Depreciation Non Cash Expenses (other than above) 0. at the rates specified in Schedule XIV to the Companies Act.10) Refinance 5198. and NABARD Financial Services Ltd.00) -0.78 (4086.51) 182145. 21.21) 13226. 4.77) 182145. *NABARD controls the Board of Directors of Agri Business Finance (AP) Ltd.71) 291.14%) of that amount is determined based on depreciation provided by following WDV / SLM at the rates as specified in Schedule XIV to the Companies Act.08 (0.08) 0.47 (68934.20) 2267.42 (18. Thus out of the total depreciation of Rs. Consolidation has been done pursuant to the listing agreement with stock exchange.63 (1567.71 (20457. Income on foreign assignments by NABCONS is accounted on “receipt” basis. 6. Details of the subsidiaries: Country of Incorporation India India India India Proportion of Ownership 52.61) 129.85) 252.98 (33. 3.05) 18.24) 1302.82* 61.48 (9224. 1956 by Agri Development Finance (Tamilnadu) Ltd and Agri Business Finance (AP) Ltd.10 47.54) 21.21 (66434.34 (22.91 (103. 5.46 (-915. S. The amount of such fees receivable is not material. 0.71 100 Name of the Subsidiary Agri Development Finance (Tamilnadu) Ltd.39) Treasury 1346. NABARD Financial Services Limited NABARD Consultancy Pvt.34 (100.63) -925.27) 84520.Additional Notes to Consolidated Accounts 1. and hence considered as a subsidiary.21 (271.97) 21103. Parikh & Associates Chartered Accountants FRN . whereas NABARD Financial Services provided Streight Line Method (SLM) at the rates specified in Schedule XIV to the Companies Act. 2.41) 2454. 1956 on prorata basis.80 (-0.55) 76230.38 (1835.06) 15. 107564W Ashok Rajagiri Partner M No. Agri Business Finance (AP) Ltd. Depreciation on fixed asset is provided on Written Down Value Method (WDV).21) 18.17 (266.26 (22..56) Total 11010. 1956.02 (943.67) 274.89 (158978.34crore (22.046070 Mumbai Date : 26 May 2012 Prakash Bakshi Chairman H R Khan Director Dipankar Gupta Director K.42 (18.77 (4090. The financial statements of the company and its subsidiary companies are combined on a line to line basis by adding together expenses after fully eliminating intra-group balances and intra-group transactions in accordance with Accounting Standard – (AS) – 21 – “Consolidated Financial Statement”.89 (158978. Thus the Accounting Policy followed by subsidiaries for depreciation are different from the Accounting Policy for depreciation followed by NABARD in the preparation of Consolidated Financial Statements.18) Direct Finance 4412.

37.30 26036.65.85 -17.88 -23166.23 14.99.53.51 1848.12.64 -5492.04 1168.88.72.55 51.92.05.28.52 -33.34 1815.74.53.44.90.27 24052.30.43 0 -1346.53.74 746.30 6793.37 2555.38.81.40 694.26 3925.54.33.63 0 -938.81.34 32.53.83 -4418.32 12.47 -31.09.57.77.15 2011-12 4.69.32 -17.16 -431.24.44 943.09 1166.69 139 .85.06 -58.54 230.67.70 -2087.85 4.49.21 -19087.93 -25418.88.97.32 2.32.80 -24987.99.70 12762.90 999.20.91 381.71 -377.77 12557.87.76.19 -23708.27.71.78.53 1781.65.04.33.80.88.79.35 649.79.57.National Bank for Agriculture and Rural Development Consolidated Cash Flow Statement for the year ended 31 March 2012 (` in thousands) Particulars (a) Cash flow from Operating Activities Net profit as per P & L a/c before tax Depreciation Provisions and Amortisations Provision for Non performing Assets Provision for Standard Assets Provision for Sacrifice in interest element of restructured loan Interest credited to various funds Other expenses Income from Investment Profit / Loss on sale of Fixed Asset Expenditure from various funds Operating profit before working capital changes Adjustment for net change in: Current Assets Current liabilities Increase/Decrease in Loans and Advances Cash generated from operating activities Payment towards Income tax Net cash flow from operating activities (A) (b) Cash flow from Investing Activities Income from Investment Increase / Decrease of Fixed Assets Increase / Decrease in Investments Net cash used in investing activities (B) (c) Cash flow from Financing Activities Proceeds of Bonds / Shares Increase / Decrease in Borrowings Increase / Decrease in Deposits Grants / contributions received Dividend paid Net cash raised from financing activities (C) Net increase in cash and cash equivalent (A)+(B)+(C) Cash and cash equivalent at the beginning of the period Cash and cash equivalent at the end of the period Cash and cash equivalent at the end of the period includes : Cash in hand Balance with Reserve Bank of India Balances with other Banks in India Remittances in Transit Collateralised Borrowing and Lending Obligations Total As per our attached report of even date P .45 79.18. 107564W Ashok Rajagiri Partner M No.43.02.50.92.25 -541.16 2.34.87 717.13 2.62 -3174.03 1331.82.00 0 -8.56 2126.45 -1161.09 1346.56 1815.57.00 139.23.36.06.03 11821.69 1781.99.69 2010-11 10 38.26 854.78 -2055.31 21. Padmanabhan Chief General Manager Accounts Department Mumbai : 26 May 2012 M L Sharma Director During 2011-12 2266.58 -3283.02.86.00 118.20 22.54 1815.76. S.46 -25803.15 During 2010-11 1835.046070 Mumbai Date : 26 May 2012 Prakash Bakshi Chairman H R Khan Director Dipankar Gupta Director K. Parikh & Associates Chartered Accountants FRN .37 228.

org ccd@nabard.org dpsp@nabard.org cpd@nabard.org hrmd@nabard.org dos@nabard.org bid@nabard.org id@nabard.org cvc@nabard.org pcd@nabard.26539046 140 .org ed1@nabard.org dpd.fs@nabard.org dcbs@nabard.org mcid@nabard.org ad@nabard. Ramakrishna Rao)'s Secretariat Accounts Department Business Initiatives Department Central Vigilance Cell Corporate Communication Department Corporate Planning Department Department of Core Banking Solutions Department of Economic Analysis & Research Department of Information Technology Department of Premises.E-mail Addresses of NABARD Head Office Departments at Mumbai Chairman's Secretariat Executive Director (S.org dit@nabard.nfs@nabard.org icd@nabard.org ed2@nabard.org Telephone Nos.org law@nabard.org fid@nabard. Mitra)'s Secretariat Executive Director (V. Security & Procurement Department of Supervision Development Policy Department-Farm Sector Development Policy Department-Non-Farm Sector Finance Department Financial Inclusion Department Human Resources Management Department Inspection Department Institutional Development Department Investment Credit Department Law Department Micro Credit Innovations Department Nabcons Production Credit Department Rajbhasha Prabhag Secretary's Department State Projects Department chairman@nabard.org secy@nabard.org dpd.org fd@nabard.org rajbhasha@nabard.org spd@nabard. Reception : 022-26539895/96/99 Protocol & Security : 022 .org nabcons@nabard.org dear@nabard.org idd@nabard.K.

4th & 5th floor Dak Bungalow Road Patna . : (03192) 237696 E-mail : portblair@nabard. West Wing Khermahal. No.org KARNATAKA 113/1. Post Box No. : (079) 27552257-59 Fax No.org NAGALAND NSCB Head Office Administrative Bldg. : (0172) 5046703.org HARYANA Plot No. : (0172) 5046702 E mail : chandigarh@nabard. : (080) 22222148 E mail : bangalore@nabard. Arera Colony. : (0172) 5046700.org JHARKHAND Opp. No. : (0360) 2212675 E mail : itanagar@nabard.1 Dispur. Sector 34-A Post Box No.3. Nehru Place Tonk Road. Jeevan Prakash Annexe J.in ASSAM Opposite Assam Secretariat G. Post Bag No. : (0141) 2742161 E mail : Jaipur@nabard. Statue P. Municipal Garden Usmanpura Ahmedabad . Imphal . Adivasi College Hostel Karamptoli Road Ranchi . P. B. : (0832) 2223429 E mail : panaji@nabard.in MIZORAM Ramhlun Road (North) Bawngkawn Aizawl . P.695 001 Tel No. VIP Road.28(2). 4th Floor.org nabmpro@dataone. : (0651) 2361107 Fax No. 242180 Fax No.110 125 Tel No. Road. 2430504 Fax No. 5046701 Fax No. Road. No.in CHHATTISGARH 1st & 2nd Floor. : (03192) 233308.org nab_rpr@dataone. : (040) 27611829 E-mail : hyderbad@nabard.org RAJASTHAN 3.org ORISSA 'Ankur'.797 112 Tel No.B. 5. 4th South Block Bahu Plaza Complex. 09436040732 Fax No.793 003 Tel No.34 'A' Chandigarh .org ANDHRA PRADESH 1-1-61. 2/1.781 006 Tel No.180 012 Tel No. : (0471) 2324358 E mail : trivandrum@nabard. 2743416 Fax No. : (0674) 2552019 E mail : nabbhu@sancharnet. : (0771) 2884992 E mail : raipur@nabard.171 009 Tel No.462 016 Tel No. : (0191) 2472337 E mail : jammu@nabard. : (0612) 2238424 E mail : patna@nabard.302 015 Tel No.org nabassam@dataone. : (040) 27685555.org GUJARAT NABARD Tower Opp.160 022 Tel No.org BIHAR Maurya Lok Complex Block ‘B’.560 002 Tel No. : (020) 25542250 E-mail : pune@nabard. Shivaji Nagar Pune .3.800 001 Tel No. 32 S. Block No. : (020) 25541083 25542090 Fax No.org KERALA Punnen Road.S. : (0361) 2235657 E mail : guwahati@nabard. 2305290 Fax No. 5046728 Fax No.A. : (03862) 227040 E-mail : dimapur@nabard. : (03862) 234063. : (0389) 2343428.in MAHARASHTRA 54.411 005 Tel No. : (0364) 2221602. : (079) 27551584 E mail : ahmedabad@nabard. 235600 235601 Fax No. : (0612) 2223985 Fax No.500 020 Tel No. 27612651 Fax No. Nizari Bhavan Menezes Braganza Road Panaji . Circular Road Dimapur . 2472620 Fax No. 2416192 Fax No.org 141 .D.834 001 Tel No. 220 Thiruvananthapuram . Bittan Market Ravishankar Nagar Post Office Bhopal . : (0771) 2888496/99 Fax No. : (0389) 2340815 E mail : aizawl@nabard.org GOA Third floor.795 004 Tel No. : (0364) 2227463 E mail : shillong@nabard.403 001 Tel No.org pat_nab@dataone.492 009 Tel No.C. : (0832) 2220490. 7 Sector . B. : (0177) 2622271 E-mail : shimla@nabard. : (0755) 2466188 E mail : bhopal@nabard. : (0172) 2604033 E mail : haryana@nabard. : (0674) 2553884 Fax No. : (0385) 2416191 E-mail : imphal@nabard. : (0141) 2740821.org NEW DELHI NABARD Tower 24 Rajendra Place New Delhi . 2nd & 3rd Floor Dhankheti.in HIMACHAL PRADESH NABARD Bhavan. Nayapalli Civic Centre Bhubaneswar . 2503499 2501518 Fax No.org nabardsm@dataone.org PUNJAB Plot No.796 014 Tel No. Road.380 013 Tel No.744 103 Tel No. : (0191) 2472355. : (0471) 2323859 Fax No.Regional Offices / Cell / Training Establishments REGIONAL OFFICES ANDAMAN & NICOBAR NABARD Complex VIP Road Port Blair . 104 Jaipur . : (0755) 2463341/69 2466695 Fax No.K. : (0360) 2215967. Fafadih Chowk Raipur .in MEGHALAYA 'U' Pheit Kharmihpen Building Plot No. 2 Jammu .751 015 Tel No. 7 Chandigarh . : (011) 41539187 41539185 E mail : delhi@nabard. : (0651) 2361108 E-mail : nabardjh@dataone.org MANIPUR Leiren Mansion Opposite Lamphel Supermarket Lamphelpat. Shillong . : (011) 25818733 25721723 Fax No.791 111 Tel No. TT Marg Opposite State Bank of India Itanagar .org MADHYA PRADESH E-5. : (0385) 2410706. : (080) 22225241/44 Fax No. Post Box No.in JAMMU & KASHMIR B-II.in bhubaneswar@nabard.org ARUNACHAL PRADESH Bank Tinali. Complex.160 022 Tel No. 29 Bengaluru .org nabbng@dataone. : (0177) 2624373 2624379 Fax No. Guwahati . : (0361) 2235661 2238004 to 025 Fax No. RTC Cross Roads Musheerabad Hyderabad . Pithalia Complex K. Wellesley Road Post Box No. Kasumpti Shimla .

org 142 . : (0194) 2310479 TRAINING ESTABLISHMENTS BOLPUR Bankers Institute of Rural Development NABARD. : (0824) 2225836. : (03592) 203015.mangalore@nabard.226 012 Tel No. 28304444 Fax No.A. Mangalore .248 001 Tel No. : (044) 28275732 E mail : chennai@nabard.in MANGALORE Bankers Institute of Rural Development NABARD. : (0522) 2304531 E mail : lucknow@nabard. : (0381) 2302378 Fax No.SIKKIM Om Nivas. : (033) 22552255. Mahatma Gandhi Road Post Box No. Hotel Sunrise Building 2nd & 3rd Floor. Amar Singh College Gate Gogji Bagh Srinagar .: (0824) 2225835 E mail : rtc. : (0381) 2224125 E mail : agartala@nabard.org CELL SRINAGAR Opp.org nabarddoon@dataone. Nungambakkam Chennai . : (0522) 2304530 Fax No.600 034 Tel No.575 004 Tel No. Post Box No.799 001 Tel No.700 016 Tel No.co.in gangtok@nabard.9 Agartala .org TRIPURA Palace Compound (East) Uzirbari Road.6074.: (0522) 2421 006 /176 / 047 E mail : bird@bsnl. Post Bag No. : (0135) 2748610 E mail : dehradun@nabard.737 101 Tel No.139 Rajpur Road Dehradun . : (03463) 252812.in WEST BENGAL ‘Abhilasha’.9083.com LUCKNOW Bankers Institute of Rural Development Section 'H'. : (0522) 2421 954 / 137 / 187 Fax No. 6.in birdindia@yahoo. : (0135) 2748611 Fax No. 204173 Fax No. : (03592) 204062 E mail : nabard_gtk@dataone. 46 Gangtok . Vipin Khand Gomti Nagar Lucknow .org UTTARAKHAND 113/2. Church Road Post Box No. 1117 Manjusha Building Above Automatrix Showroom Near KSRTC Bus Stand Bejai Church Road Bejai.in kolkata@nabard. : (033) 22494507 E-mail : nabardkol@dataone. Bolpur Lodge Bolpur – 731 204 Birbhum (West Bengal) Tel No. Colony Kanpur Road Lucknow . 252783 Fax No. 2nd floor Post Box No. : (0194) 2310280 Fax No. Post Box No. L.226 010 Tel No.org UTTAR PRADESH 11. 2225844 Fax No.: (03463) 252295 E-mail : nabbol@rediffmail. Royd Street Kolkata .190 008 Tel No. : (044) 28276088. 22667943 Fax No.org TAMIL NADU 48.D.

2008 Aadhar Enabled Payment Service Agricultural Export Zone Agricultural Finance Corporation Ltd. Action for Food Production Agriculture Demand Side Management Agricultural Marketing Information Network Animal Husbandry Accelerated Irrigation Benefit Programme All India Debt and Investment Survey Asset Liability Management Committee Asset Liability Management Agriculture Marketing Infrastructure Anti-Money Laundering Aadhar Payment Bridge Andhra Pradesh State Cooperative Bank-Cooperative Training Institute Agricultural Produce Market Committee Asia-Pacific Rural and Agricultural Credit Association Assistance to Rural Women in Non-Farm Development CBP CBS CCB C-DAC CDF CDP CER CERFI CES ASP ATM ATS BADP BAIF BC BCM BDP BF BKGB BIRD BMCU BNB BoS BPL C-PEC CAC CAGR CARE CAS CAT CB CBLO Application Service Provider Automated Teller Machine Application Tracker System Border Area Development Programme Bharatiya Agro Industries Foundation Business Correspondents Billion Cubic Meters Business Development Plan Business Facilitators Bihar Kshetriya Gramin Bank Bankers Institute of Rural Development Bulk Milk Chilling Unit Bhavishya Nirman Bonds Board of Supervision Below Poverty Line Centre for Professional Excellence in Cooperatives Concurrent Audit Cell Compound Annual Growth Rate Credit Analysis & Research Limited Common Accounting System Capacity Building for Adoption of Technology Commercial Banks Collateralised Borrowing and Lending Obligation Capacity Building Phase Core Banking Solution Central Co-operative Bank Centre for Development of Advanced Computing Co-operative Development Fund Cattle Development Project Certified Emission Reduction Centre of Excellence for Rural Financial Institutions Community Enterprise System 143 .LIST OF ABBREVIATIONS AA AS AAGR AAY A & N Islands ABCI ACABC ACB ACE ACSTI ADFC ADWDRS AEPS AEZ AFC AFPRO AgDSM AGMARKNET AH AIBP AIDIS ALCO ALM AMI AML APB APCOB-CTI APMC APRACA ARWIND Administrative Approval Accounting Standards Average Annual Growth Rate Antyodaya Anna Yopjana Andaman & Nicobar Islands Associated Business Communicators of India Agri Clinic and Agri Business Centres Audit Committee of the Board APRACA Centre of Excellence Agriculture Co-operative Staff Training Institute Agriculture Development Finance Company Agricultural Debt Waiver and Debt Relief Scheme.

CFSA CGTMSE CIBIL CIP CISS CLA CLMAS CMA CMIE CMR CPI CPI-AL CPIO CPI-RL CPIS CRAR CRIDA CRISIL CRR CS CSA CSP CTFC CTI CUC CV CVC CWC DADI DAHDF DAP DCCB

Committee on Financial Sector Assessment Credit Guarantee Fund Trust for Micro and Small Enterprises Credit Information Bureau (India) Limited Central Issue Price Capital Investment Subsidy Scheme Central Loan Assistance Centralised Loan Accounting and Management System Credit Monitoring Arrangement Centre for Monitoring of Indian Economy Centre for Micro-finance Research Consumer Price Index Consumer Price Index for Agricultural Labour Central Public Information Offices Consumer Price Index for Rural Labour Coconut Palm Insurance Scheme Capital to Risk-Weighted Assets Ratio Central Research Institute for Dryland Agriculture Credit Rating Information Services of India Limited Cash Reserve Ratio Capital Support/Company Secretary Co-operative Societies Act Customer Service Provider Certified Trainer in Financial Cooperatives Co-operative Training Institute Carcass Utilisation Centre Coefficient of Variation Central Vigilance Cell Central Water Commission District Agricultural Development Index Department of Animal Husbandry, Dairying and Fisheries Di-Ammonium Phosphate/ Development Action Plan District Central Co-operative Bank

DDM DDSD DEDS DLMRC DLT DMI DPR DRDA DRIP DTL DTP DVCF EC FC FCI FDI FIF FIMMDA FINO FIP FIPF FITF FIU-IND FLCC FR FRC FRL FSR FSS FTRDC FTTF GAAP GCC

District Development Manager Demand Driven Skill Development Dairy Entrepreneurship Development Scheme District Level Monitoring and Review Committee District Level Trainers Directorate of Marketing and Inspection Detailed Project Reports District Rural Development Agency District Rural Industries Project Demand and Time Liabilities Development of Tribal Population Dairy Venture Capital Fund Extension Counter Farmers’ Clubs/Financial Co-operation Food Corporation of India Foreign Direct Investment Financial Inclusion Fund Fixed Income Money Market and Derivatives Association of India Financial Information Network & Operations Ltd. Full Implementation Phase Farm Innovation and Promotion Fund Financial Inclusion Technology Fund Financial Intelligence Unit - India Financial Literacy and Credit Counselling Centres Flash Reports Farmers’ Resource Centre Full Reservoir Level Feasibility Study Report Farmers’ Service Societies Farmers’ Training and Rural Development Centres Farmers’ Technology Transfer Fund Generally Accepted Accounting Policies General Credit Card

144

GCF GDP GDS GIZ GLC Ha HFT HPC HRMS HTM HWG IARI IAS IBPS ICAI ICM ICRA ICRISAT-WWF

Gross Capital Formation Gross Domestic Product Gross Domestic Savings Deutsche Gesellschaft fur Internationale Zusammenarbeit Ground Level Credit hectare Held for Trading High Power Committee Human Resource Management System Held to Maturity Handloom Weavers’ Groups Indian Agricultural Research Institute Indian Administrative Service Institute of Banking Personnel Selection Institute of Chartered Accountants of India Institutes of Cooperative Management Investment Information and Credit Rating Agency of India International Crops Research Institute for the Semi-Arid Tropics - World Wide Fund for Nature Information and Communications Technology Institute for Development & Research in Banking Technology Information, Education, Communication Indian Economic Service International Fund for Agriculture Development Indo-German Watershed Development Programme Integrate Handloom Development Scheme Indian Institute of Bank Management Indian Institute of Management Invest India Micro-Pension Services Integrated Nutrient Management Indian Institute of Technology International Monetary Fund

IPDSS IPM IR IRDA IRR IRV ISAP ISEC ISMW ISRO-VSAT ISS ITI IWDP JCC JLG JLTC JNNSM KADFC KCC KfW KVIC KVK KYC LABS LAMPS LBSNAA LPA LT LTCCS LWE MAAPA

Institutional Protection and Deposit Safety Scheme Integrated Pest Management Inspection Reports Insurance Regulatory and Development Authority Internal Rate of Return Individual Rural Volunteers Indian Society of Agri-business Professionals Institute for Social and Economic Change Indian School of Micro-Finance for Women Indian Space Research Organisation Very Small Aperture Terminal Investment Specific Studies Integrated Training Institute Integrated Watershed Development Programme Joint Consultative Committee Joint Liability Group Junior Level Training Centres Jawaharlal Nehru National Solar Mission Karnataka Agriculture Development Finance Company Ltd. Kisan Credit Card Kreditanstalt fur Wiederaufbau (German Development Bank) Khadi and Village Industries Commission Krishi Vigyan Kendras Know Your Customer Livelihood Advancement Business School Large-sized Adivasi Multipurpose Society Lal Bahadur Shastri National Academy of Administration Long Period Average Long Term Long Term Co-operative Credit Structure Left Wing Extremism Multi-activity Approach for Poverty Alleviation

ICT IDRBT IEC IES IFAD IGWDP IHDS IIBM IIM IIMPS INM IIT IMF

145

MACS MDMI MEDP MF MFDEF MFI MIS MMS MMTC MNAIS MNRE MoA MOP MoSPI MoT MoU MPLADS MPKV MRP MSP MSTP MT MU Nabcons NABFINS NAFSCOB NAIS NBFC NBS NCCT NCOF NEDFi

Mutually Aided Co-operative Societies Manpower Development & Management Institute Micro-Enterprise Development Programme Micro-Finance Micro-finance Development and Equity Fund Micro Finance Institution Management Information System/Market Intervention Scheme Mandal Mahila Samakhya Minerals and Metals Trading Corporation Modified National Agricultural Insurance Scheme Ministry of New and Renewable Energy Ministry of Agriculture/Memorandum of Agreement Muriate of Potash Ministry of Statistics and Programme Implementation Ministry of Textiles Memorandum of Understanding Member of Parliament Local Area Development Scheme Mahatma Phule Krishi Vidyapeeth Maximum Retail Price Minimum Support Price Million Shallow Tubewell Programme Medium Term / Metric Tonne Mother Units NABARD Consultancy Services Pvt. Ltd. NABARD Financial Services Ltd. National Federation of State Cooperative Banks National Agricultural Insurance Scheme Non-Banking Finance Company Nutrient Based Susidy National Council for Cooperative Training National Centre of Organic Farming North Eastern Development Finance Corporation Ltd.

NER NFS NFSM NGO NHM NIDA NIMC NIRB NLUP NMCP NMMI NPA NPCI NPDP NPOF NPRI NPS NPW NR NRC(LTO) NRMC NRC(Stab.) ODI OMSS OPP OSS OSAO PACS PARFI PAT PBT PCARDB

North-Eastern Region Non-Farm Sector National Food Security Mission Non-Governmental Organisation National Horticulture Mission NABARD Infrastructure Development Assistance National Implementing and Monitoring Committee National Institute of Rural Banking New Land Use Policy National Manufacturing Competitiveness Programme National Mission on Micro Irrigation Non Performing Asset National Payments Corporation of India National Pulses Development Programme National Project on Organic Farming National Programme on Rural Industrialisation New Pension System Net Present Worth Natural Rubber National Rural Credit (Long Term Operations) Natural Resources Management Centre National Rural Credit (Stabilisation) Organisational Development Initiative Open Market Sale Scheme Oilseeds Production Programme Off-site Surveillance System Other than Seasonal Agricultural Operations Primary Agricultural Credit Societies PanIIT Alumni Reach for India Profit After Tax Profit Before Tax Primary Co-operative Agriculture and Rural Development Bank

146

PDAI PDS PEC PFRDA PGDRB PIA PLP PMU POS PPID PODF PPP PRI PUCB PVCF PVI RBI RASS RCMB RCS RDBS REDP RDA RFA RFI RFIP RGCT RGMVP RICM RIDF RIPF RIF RLP RML Primary Dealers Association of India Public Distribution system Project Equipment Corporation Pension Fund Regulatory & Development Authority Post Graduate Diploma in Rural Banking Project Implementing Agency Potential Linked Credit Plan Programme Management Unit Point of Sale Pilot Project for Integrated Development of Backward Blocks Producer Organisation Development Fund Public Private Partnership Panchayat Raj Institution Primary Urban Co-operative Bank Poultry Venture Capital Fund Preventive Vigilance Inspections Reserve Bank of India Rashtriya Seva Samiti Risk Management Committee of the Board Registrar of Co-operative Societies Rural Development Banking Service Rural Entrepreneurship Development Programme Rural District Association Revolving Fund Assistance Rural Financial Institutions Rural Financial Institutions Programme Rajiv Gandhi Charitable Trust Rajiv Gandhi Mahila Vikas Pariyojana Regional Institute of Cooperative Management Rural Infrastructure Development Fund Rural Infrastructure Promotion Fund Rural Innovation Fund Realistic Lending Programme Reuters Market Light RMCB RNFS RRB RSVY RTC RTI Risk Management Committee of the Board Rural Non-Farm Sector Regional Rural Bank Rashtriya Sam Vikas Yojana Regional Training College Right to Information RUDSETI/R-SETI Rural Development and Self Employment Training Institute R&D SAO SAS SAU SBLP SBPC SCARDB SCB SCC SDC SDD SDP SEWA SFAC SF/MF SFP SGSY SHG SHLS SHPI SIDBI SLIC SLR SLSMC SLTF SMS Research and Development Seasonal Agricultural Operations Situation Assessment Survey State Agricultural University SHG-Bank Linkage Programme Standardised Banking Programme for Co-operatives State Co-operative Agriculture and Rural Development Bank State Co-operative Bank Swarojgar Credit Card Swiss Agency for Development and Cooperation Special Development Debentures Skill Development Programmes Self Employed Womens’ Association Small Farmers Agribusiness Consortium Small Farmers/Marginal Farmers State Focus Paper Swarnjayanti Gram Swarozgar Yojana Self Help Group Solar Home Lighting System Self Help Promoting Institution Small Industries Development Bank of India State Level Implementation Committee Statutory Liquidity Ratio State Level Sanctioning and Monitoring Committee State Level Task Force Short Messaging Service 147 .

Threats Tamil Nadu Generation and Distribution Company Technical Component Tribal Development Fund Training Establishment Total Financial Outlay TMB TMT TPDS ToR UIDAI UNDP UPNRM USAID USQ UT VA VC VDP VSAT VWC WAN WBCIS WDC WDF WPI WSHG ZoC Term Money Borrowings Top Management Team Targeted Public Distribution System Terms of Reference Unique Identification Authority of India United Nations Development Programme Umbrella Programme on Natural Resources Management US-Agency for International Development Unstarred Question Union Territory Voluntary Agency Video Conferencing Village Development Programme Very Small Aperture Terminal Village Watershed Committee Wide Area Network Weather Based Crop Insurance Scheme Women Development Cell Watershed Development Fund Wholesale Price Index Women Self Help Group Zone of Consideration 148 .SNTS SOFTCOB SPA SPV SRI SRTO SS SSI STCCS STCRC STD ST(SAO) ST(OSAO) SWC SWOT TANGEDCO TC TDF TE TFO Special Non-Transferability Scheme Scheme of Financial Assistance for Training of Co-operative Banks Personnel Special Programme Assistance Special Purpose Vehicles System of Rice Intensification Small Road Transport Operators Special Studies Sustainable Sugarcane Initiative Short Term Co-operative Credit Structure Fund Short Term Co-operative Rural Credit (Refinance) Fund Short Term Deposit Short Term (Seasonal Agricultural Operations) Short Term (Other than Seasonal Agricultural Operations) State Warehousing Corporation Strength. Weakness. Opportunities.

nabard. G Block. Bandra ( East ). Bandra-Kurla Complex.org . website : http://www.400 051. Mumbai .National Bank for Agriculture and Rural Development C-24.

Sign up to vote on this title
UsefulNot useful