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Letter of Transmittal

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT Plot: C-24/‘G’, Bandra-Kurla Complex Post Box: 8121, Bandra (East) Mumbai - 400 051
CHAIRMAN Ref.No.NB.Secy./ 774 /AR-1/2010-11 12 July 2010 21 Ashadha 1932 (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 2010 alongwith a copy of the Auditors’ Report and Two copies of the Annual Report of the Board of Directors on the working of National Bank during the st year ended 31 March 2010.
st

ii.

Yours faithfully

Umesh Chandra Sarangi

Board of Directors
Umesh Chandra Sarangi Chairman

Directors appointed under Section 6(1)(c) of the NABARD Act, 1981

Dr. K. C. Chakrabarty

Lakshmi Chand

Shashi Rekha Rajagopalan

Directors appointed under Section 6(1)(d) of the NABARD Act, 1981

P. K. Basu

B. K. Sinha

Alok Nigam

Directors appointed under Section 6(1)(e) of the NABARD Act, 1981

Roshan Lal

Letkhogin Haokip

L. C. Goyal

M. I. Khandey

Dr. K. G. Karmakar Managing Director

........................................... 95 • Administrative and Other Matters .....................................................2 1.......4 2.....................6 German collaboration in Watershed Programmes .................................................................................. 106 Balance Sheet ........................................................................................................................................ 45 Projects Sanctioned Under FITF during 2009 ......................................................................................................................................................................................................................................................... 90 V............................................................................................................................................................................................................................................ 32 Findings of a Quick Study in Distressed Districts ...........................................1 1.................5 2................................................................................................................................Solar Lanterns for Weavers .......... 33 Impact Evaluation Study of IGWDP Watersheds in Maharashtra by Action for Food Production (AFPRO) : Major Findings ............ 23 Impact of Credit on Crop Yields .....................................................................................................2010 ........................................................................ 104 Auditors’ Report .................................................... 41 Projects Sanctioned under FIF during 2009 ......................... Rural Economic Environment .... 56 • Investment Credit ........ 107 Profit and Loss Account 2009-10 ................ 46 Grant Assistance for MFI Ratings ................................................................ 139 Boxes 1.. 60 • Rural Infrastructure Development ... 137 Abbreviations .......................2 2..........7 2................................................................................................................................................. 97 VI........................................... 94 • Management .......................................................................................................................................................................................... 94 • Human Resources Management ............... 20 Policy Recommendations on Agriculture & Rural Development ..................................... 32 • Farm Sector ................ Development Initiatives .......................... Capacity Building of Client Institutions ...........5 2.. 39 2.......1 5...........1 2................................................................................................................3 Food Inflation .....4 1.......................................... 17 • Global Economy ..................................................................................................... 31 Major findings of Mid-Course Evaluation of WDF Watershed Projects by CRIDA ......................................................................................................................................................................................................................................... 56 • Production Credit ... 49 Revised Licensing norms for Co-operative Banks ..... 41 • Financial Inclusion ........................................................................ Organisation and Management ..........................................................................................................................................................................................2010 ..................1 2........... 131 Regional Offices/Sub-Office/Training Establishments ...................................................................................................................................................................................................................................................................................................................................................................................................................9 4..................................................................Initiatives ................................................................................................................................................................................. 40 RIF Success Story ... 25 Yield Effect of Kisan Credit Card (KCC) ......... 43 • Micro-Finance ................................................................................... 95 .. Business Operations ...................................................... 29 Task Force to look into Issues of Private Moneylenders ................................................................................ 1 I.... 47 • NABARD Consultancy Services ................................................... 77 • Institutional Development ................................................................ 52 • Research and Development Activities ..................3 1...... 18 II...........................................................8 2............................................................................................. 17 • Indian Economy ............................................................................................ 53 • Training Personnel of RFIs ....................................................................................................................................................................................................................................................................................................... Financial Performance & Management of Resources .......................................................Contents Page No.......................................................................................................................... 91 Repositioning initiative of NABARD ............................ 101 • Sources of Funds ................................................................................................ NABARD at a Glance Key Data References Principal Officers Highlights .......... 39 UPNRM Projects .................................................................. 77 • Supervision over Banks ........................................................................................................... 108 Consolidated Financial Statements 2009-10 ............................................................................................... 101 • Uses of Funds ....................................................................................................................................................................................... 66 IV............................................................................. 54 III................................... 32 • Rural Non-Farm Sector ................................................................................................ 103 • Investment of Surplus Funds .......................................................................................

crore) Sources of Fund 2010 2009 Net Accretion Uses of Funds 2010 2009 Net Utilisation Capital Reserve & Surplus NRC(LTO) Fund NRC (Stabilisation) Fund Deposits Bonds and Debentures Borrowings from GoI 2000 10674 14417 1566 505 20004 147 2000 9535 14016 1555 482 23704 354 0 1139 401 11 23 -3700 -207 Cash and Bank Balances Collateralised Borrowing and Lending Obligation Investment in a) GOI Securities b) ADFC Equity c) AFC Equity d) SIDBI Equity e) AICI Ltd. f) NCDEX Ltd.NABARD AT A GLANCE (Rs. g) Nabcons 9628 13975 -4347 0 0 0 1991 15 1 48 60 15 5 905 0 744 1555 15 1 48 60 6 5 1005 157 143 436 0 0 0 0 9 0 -100 -157 601 Borrowings from Commercial Banks Foreign Currency Loan Certificate of Deposits Commercial Paper Collateralised Borrowing and Lending Obligation Term Money Borrowings RIDF Deposits STCRC Fund Other Liabilities Other Funds Total 215 762 59869 9622 5685 6773 0 244 47023 4622 4279 7367 215 518 500 494 379 2680 500 498 1816 181 0 -4 -1437 h) Mutual Fund/VCF i) Treasury Bills j) Commercial Paper Loans and Advances a) Production & 2499 Marketing Credit b) Conversion of Production Credit into MT Loans c) Liquidity Support d) MT & LT Project Loans e) LT Non Project Loans 12846 5000 1406 Fixed Assets -594 18116 Others Assets Total f) Other Loans g) RIDF Loans h) Co-finance (Net of Provision) 24073 16896 7177 0 20 35742 199 131 60255 84 20 2591 33335 252 48 45616 94 -20 -2571 2407 -53 83 14639 -10 235 2141 247 2107 -12 34 18116 136292 118176 136292 118176 . & MCX Ltd.

Investment Credit 64 Farm Sector – 64 NFS – 64 SHG – 64 Co-financing projects No.5 P 218.015 – 62 Amount (Rs.RRB No. of projects 69 & 70 .393 2.01 57.190 18. of projects 53 R&D Fund .41 3rd AE 274.66 360 299 61 – – 286 868 150 210 6.59 38 14 74 12 9.66.5 9 10. of projects 35 Farmers’ Club No.81 109 12 – 20 76 5 – – – – 12 85. No. 79 DCCB in profit @ LT Co-operatives 79 SCARDB in profit @ No.9 – 41 17. 89 RRB .97 59 17 79 151 16.36.14 343 292 51 – – P : Provisional 26 320 11 326 11. of projects Business Operations 57 Financial Support by NABARD – Refinance .55 236 4.590 8 155 2.66 3rd AE 22.SCB No.779 1.253 17.7 10.176 395 1.982 196 0.448 3.173 12 15. of projects 42 REDP No.Disbursement 72 . forestry and fishing @ : Data pertains to financial years 2007-08 & 2008-09 1 : At Factor Cost at 2004-2005 prices ‘@@ : Statutory Inspections ^ : Voluntary inspections .929 4.888 10.7 1. 41 RIF.989 8 65 2.ST Credit 58 ST (SAO) .527 – 122 7.254 1.832 177 542 12.01. crore) 2008-09 2009-10 – – – – – 3.18.719 10.72 285. 34 Tribal development projects No.NPA Position % to loan O/S 91 Inspection of banks^@@ No.435 5.5 80 4.1 78 3.6 R E -36 8 21.083 1.3 39.projects No.919 P – – – – 34. 91 RRB@@ Financial Performance & Management of Resources 101 101 Market Borrowings Total Working Funds – – RE : Revised Estimate ‘++ : Of 170 kgs each AE : Advanced Estimate.NPA Position 81 SCARDB .6 15.707 2.620 37 14. 79 PCARDB in profit @ No. of projects 47 SHG Credit Linked lakh 52 Consultancy Assignments .09 83 9 – 20 80 5 – – – – 8 39.577 15. 26 261 9 283 12.NPA @ LT Co-operatives .009 4.28 8.627 0.6 QE -2 -31 18.6 234.87 50.117 1.83 3rd AE 5. 34 FIPF.132 17 0.824 – – – – 27.03 22.NPA@ % to loan O/S % to loan O/S 81 PCARDB .9 17.promotional programmes No.NPA @ % to loan O/S % to loan O/S 80 DCCB .069 18.48 240 – 12.KEY DATA REFERENCES Page No. 59 .908 – – – – 38.753 6.630 18.535 4.19 3rd AE 25.RRB – 60 Refinance . 91 Co-operative banks@@ No.938 4. 59 Weavers’ .3 18.4 P 0.656 QE : Quick Estimate + : Includes agriculture.Completed – Performance of RFI ST Co-operatives 79 SCB in profit @ No.547 266 191 10.63 33 16.459 10 – – – – – 3.763 17.NPA @ RRB 89 RRB in profit No.029 3.109 6. of clubs 37 NABARD-KfW Projects No. 60 ST (OSAO) .46 27. 43 SCC Issued lakh 45 & 46 FITF & FIF No.5 35 43.9 Economic Indicators % Growth Overall GDP1 % Growth Agri GDP1+ Share of Agri GDP in total GDP % South-west Monsoon % deviation from normal North-east Monsoon GLC % increase Foodgrains production million tonnes Oilseeds production million tonnes Sugarcane production million tonnes Cotton production million bales++ KCC Issued million Development Initiatives 32 Watersheds No.SCB No. 18 18 19 21 21 24 25 25 25 25 28 Particulars Unit Numerical Value 2008-09 2009-10 6.245 58 2 49 2 – 32 12 13 628 – 11.Sanction No. No. 69 RIDF Loans .2 P 14.466 3.11 1.NPA Position 80 SCB .611 405 206 5.Contracted No.256 2.Sanction No.551 – – – – 25. 35 FTTF No.9 30. ST Co-operatives .

Panigrahi S. Sreenarayanan (NBSC) G. Prakash Bakshi CHIEF GENERAL MANAGERS (Rural Development Banking Service) D. T. K. Gupta T. C. Behera . Siddesh (Gujarat) K. B. Raghavulu (Andhra Pradesh) V. V. Talreja (Haryana) . Kanojia D. K. Shashidhar (Kerala) Pankaj Pandit Dr. K. B. Srivastava B. Nayak S. G. Moharana (Chhattisgarh) S. K. Mathur C. R. Venkatesh Tagat (Karnataka) S. (Uttaranchal) Suraj Bhan J. Ramakrishna Rao B. Mishra J.B. Raghuraman (Himachal Pradesh) P Das . Gopalakrishna P Satish . Kaushik (Punjab) P Mohanaiah . Patnaik (Orissa) B. Dr. S. Ashok (Jharkhand) V. Shekhawat S. P Mishra . (West Bengal) S. C. C. (Uttar Pradesh) M. Mohapatra (Madhya Pradesh) C. Rathod R. Mitra Amaresh Kumar P L. Akbar A. Jain (Assam) S. K. G. C.Mohanty A.PRINCIPAL OFFICERS (31 March 2010) EXECUTIVE DIRECTORS S. K. Balan H. (Maharashtra) K. Narayan (Tamil Nadu) A. K. V. K. Gore K.

G. Muralidhara Rao (Rajasthan) M. Panda (Nagaland) B. Jindal (Tripura) H.M. Mupid (Meghalaya) ASST. K. Bandyopadhyay (Economic) U. CHIEF GENERAL MANAGERS (Economic / Legal / Technical Service) Dr. Negi . Chintala (Andaman & Nicobar) K. Dey (Sikkim) M. Mishra (Bihar) D. N. Sahoo . P Sandilya . GENERAL MANAGER IN-CHARGE OF SRINAGAR CELL P L. Chakrabarty (RTC. M. (Mizoram) K. . C. R. Kameswara Rao (Technical) GENERAL MANAGERS IN-CHARGE OF REGIONAL OFFICES/ TRAINING INSTITUTIONS S. Mangalore) DEPUTY GENERAL MANAGERS IN-CHARGE OF REGIONAL OFFICES/SUB-OFFICE A. A. Sukhdeve (Jammu & Kashmir) K. B. L. Mukhopadhyay (Arunachal Pradesh) G. Baheti (RTC. P Panda . J. Srivastava (Legal) Dr. (Goa) B. Bolpur) P C. M. Sandip Ghosh (Technical) V. Dave (New Delhi) A. K. Das (Manipur) N.

17.74. 9. respectively. 3. both private and public.4 per cent during 2007-08 to 32.76 million cards (41.000 crore of registered a growth rate of 7.3 per cent (28.0 per cent during 2009-10.7 per cent witnessed in 2008-09. The Gross Capital Formation in agriculture and GDP declined from 36.08 million cards (14. but during the same period.34. The Indian economy is estimated to have kharif and rabi seasons.66. 39.6 per cent in 2009.9 per cent more than the target. the banking system disbursed Rs. 4. pulses (5.3 per cent in 2008-09.6 per cent].3.7 per cent in 2004-05 and improved to 3. The GCF in agriculture and allied sectors as a proportion of total GDP stood at 2.2 per cent (14. the 2009. As against the target of Rs. country’s foodgrain production during 2009-10 has been pegged at 218. During 2009-10.7 per cent) by co-operative banks and 13. Rs.597 crore in 2008-09 – an increase of 76 per cent in four years. followed by 37.78.500 crore and Rs. 17. Their corresponding shares in credit flow were 84. the The inflation rate as measured by variations in wholesale price index on a monthly The basis overall volatile during 2009-10. in GDP is . 7.7 per cent) and oilseeds [(-) 4. The major changes in cropping pattern during 2009-10 over 2008-09 were in rice [(-) 14. 9. Commercial banks.4 per cent in 2009-10 as against 6.3.6 per cent. the country received 36 per cent less than the post-monsoon season (October-December).7 per cent and 10.57. Taken together for 1 . The impact of the delayed and sub-normal According to the 3 rd advance estimates. while the global economy is expected to dip from 3. estimated to decline marginally from 70.2.97 million Kisan Credit remained inflation rate decreased from 8. It is estimated that the Gross Domestic Investment as a proportion to GDP marginally decelerated from 35.6 per cent.9 per cent of GDP) for services.64 million credit cards issued by February 2010. the crop coverage during 2009-10 at 157.2 per cent lower than that during 2008-09. Long During South-West monsoon (June-September) Period Average (LPA) rainfall and during Cards were issued by banks with credit limits of Rs.4 per cent) by regional rural banks. The Gross Domestic Savings as a proportion to credit flow to agriculture for 2009-10.6 per cent during 2008-09 to 35.80 million cards (43. 6.963 crore.848 crore in 2004-05 to Rs. 8.8 per cent during fiscal 2009-10. 5.919 crore (provisional) as on 31 March 2010. 2.9 per cent) were issued by commercial banks.38.4 per cent). cotton (13.411 crore.5 per cent during 2008-09 and this is estimated to increase to 34. Of the total 90.3 per cent].0 per cent during 2009-10.Highlights Rural Economic Environment 1.0 per cent to 14.19 million tonnes as compared to 234. the growth rates during 2009-10 over 2008-09 are expected to be 8. monsoon was reflected in reduced area under crop cultivation during kharif season. the rainfall received was 8 per cent above the LPA. allied sectors in real terms increased from Rs.4 per cent in 2009-10. respectively. achieving 12.9 per cent in 2008-09 to 69. Co-operative banks and Regional Rural Banks disbursed Rs.1.6 per cent. The overall share of consumption expenditure.5 per cent of GDP) for industry and 0.46 million tonnes during 2008-09. the food inflation increased from 8. At the sectoral level.4 per cent during fiscal 2008-09 to 3.6 million hectares was 3.6 per cent of GDP) for agriculture.5 per cent (56.25.456 crore.0 per cent in 2008 to (-) 0. 5.

The share of SCB.84 million tonnes was higher by 22.8 per cent.5 per cent during the period between 2007-08 and 2008-09.89.0 per cent of the total GDP and about 33.83 8. The Village Development Programme had been as on 31 March 2010.86 million tonnes during 2009-10 was 23. while the area under various fixed the Fair & Remunerative Price (FRP) of sugarcane at Rs.30. 2010 at 42. the Government has hiked the FRP of sugarcane by 7 per cent at Rs.197.77 crore and Rs. During 2008-09. Similarly. financial assistance of Rs.2 million hectares during 2007-08. covering an area of 83.30 per cent over the level of 35.70 per cent higher than that at 39. States.12 per quintal. Rs. The rise in the MSP for common paddy. commitment Rs.330 families. During the year. Giving due consideration for margins to farmers on account of risk as well as profit on the cost of production including the cost of transportation. The off-take of foodgrains (rice and wheat) under Targeted Public Distribution System (TPDS) and other Schemes at 48. 17. 12. the per capita availability of milk increased from 252 grams per day to 258 grams per day. moong and wheat during 2009-10 over the year 2008-09 were 11.129.113 tribal families. 11.03 million tonnes as on April 1.71 to lakh lakh ha.00 crore. For the year 2010-11 seasons. production increased by 3.84 per quintal during 2009-10.19 crore was sanctioned during the year for 79 projects.291 crore. 2008. Under the Tribal implemented in 953 villages of 437 districts across 25 Development Fund. The stock of foodgrains (rice and wheat) held horticulture crops increased by 2. taken aggregate During up for implementation during the year.5 per cent and 1.13. respectively. taking the cumulative financial 2009-10.56.236.8. respectively.513 crore and Rs. The amount disbursed during the year was Rs.14. 9. ha.50 crore and 17 proposals in 11 states with . 2 Promotion Fund was enhanced from Rs. Rs. spread over 94 districts in 14 States.681 crore. 59 watershed projects were sanctioned taking the cumulative number to 513. The corpus of the Farm Innovation and in eight districts in South Bihar.3. respectively. As on 31 March 2010.593 ha.10.6 per cent from 212.15. area to 2.8 million tonnes during 2007-08. SCARDB and RRB stood at Rs.62 crore had been sanctioned for 191 projects benefiting 1. As a result of the increase in milk production in the country by 3.8 per cent. 13.858 crore under the Agricultural Debt Waiver and Debt Relief Scheme.5 per cent from 20. Rs. Development Initiatives Farm sector 15.139. respectively.958 16.79 crore were disbursed as grant and loan.6.0 per cent between 2007-08 and 2008-09.543. fish production increased by 7. component Under of the Special Sam Plan for Yojana. the livestock and fisheries sector contributed over 4. Under the Prime Minister’s Relief Package for 31 districts in four States.5 crore to Rs.34 per cent value of output from agriculture and allied activities. 2009. Bihar the Rashtriya Vikas number of watershed projects sanctioned rose to 79 by the end of the year. NABARD disbursed Rs. was and crore.99 crore.485 crore against by Food Corporation of India as on April 1.25. benefiting 63. which was over 51 per cent higher than the Statutory Minimum Price for the year 2008-09.25. the Government of India has the claims of Rs.37 crore while the cumulative figure was Rs. During 2008-09. 14.41 crore and Rs.50 million tonnes during 2008-09. taking such cumulative disbursements to Rs.

25 crore to Rs. in disbursement of Rs. The cumulative refinance availed amounted to Rs.39 lakh to address gender Marketing of Non-Farm Products of Rural Women Assistance Rural Women Non-Farm Development schemes.52 lakh had been provided to 321 rural marts across 22 States.37 lakh were Rs.5 lakh from Rs. 6.332.17.48 lakh persons.658. KVKs and SAUs.17. In all. GLC flow aggregated Rs.72 lakh was sanctioned to 87 rural haats.618 lakh have been sanctioned. were released as on 31 March 2010. NGOs and to PRIs/PACS. 18.financial assistance of Rs.3. taking the total number of such programmes to 25. As on 31 banks credit to March and and 2010. Cumulatively.24.13 lakh. a “Pilot project for augmenting including two rural tourism. To enable rural artisans/craftsmen realise remunerative prices and to establish marketing linkages. During 2009-10. facilitating establishment of 19.146.590 Farmers’ clubs were launched taking the total number of clubs to 54.155.11. SHGs.11 crore. Cumulative grant support of Rs.40.37 crore. during the year. during 2009-10. An amount of Rs. During 2009-10.488 lakh in 22 states. were sanctioned with a total grant support of Rs. 21.38. grant support of Rs.516 farmers were exposure collaboration with select research institutes. as on 31 March 2010.99 crore.805 covering 1. The quantum of assistance was increased to Rs. During the year. 78 projects with financial support of Rs.225 lakh and five on-location cluster workshops were conducted.50 lakh units and generating employment opportunities for 44. Under the scheme taken of on ‘Capacity 261 Building visits for by Adoption NABARD. grant support of Rs. 3 extended to 106 districts by March 2007 and 43 of phased successful reached of was implementation. During 2009-10. them districts Rs.92 lakh and Rs.675.04. 155 innovative projects were cumulative number to 252.701 units were set up generating employment for 1.50 crore for and 151 diverse of and innovative were proposals transfer technologies sanctioned a grant assistance of Rs.10. 45. 24. During 2009-10. during the year.6. GLC flow in 42 covered crore under and . During the year.298. services.104 lakh have been completed.3 lakh and coverage extended to include permanent structure/s as per local requirements. 22.91 lakh.69 crore was disbursed during the year for 252 projects taking the cumulative disbursements to Rs. taking Rs. the During 2009-10. introduced in 1999 in DRIP districts was extended to all districts. 23. were supported with grant assistance of Rs.133. The corpus of Farmers’ Technology Transfer Fund was also enhanced during the year from Rs. An amount of sanctioned under the Rural Innovation Fund. Since inception. village bazaar boards.70 crore was sanctioned taking the cumulative commitment to Rs. 15 participatory clusters. of which 25 projects with financial assistance of Rs. various refinance Project on phases availed was Co-operative issues and in SCARDBs.46 crore as on 31 March 2010. 119 rural marts in 22 States were sanctioned grant assistance of Rs. 263 marketing events/ exhibitions. 16.648 villages in 587 districts. respectively. 55 Rural Non-Farm Sector 19. The ‘Scheme for Strengthening of Rural Haats’ sanctioned during the year.17. of in Technology’.11 crore.42 lakh persons.56 lakh. Development Cells were supported in 58 RRBs. three support 116 Women with Under productivity of lead crops/activities through adoption of sustainable agricultural practices” was launched in 900 villages at the national level with the aim of augmenting income of the farmers through enhanced production and productivity of lead crops/activities. 20.295.99 The District out Rural by Industries 2007-08.

1.38 crore for 2.47 and Rs.50 crore each as on 31 March 2010.93 crore was incurred for capacity building initiatives for all stakeholders in the SHG segment.15.225 villages have been covered under Financial Inclusion through FIF & FITF with a sanction amount of Rs.21 lakh SHGs maintained bank savings of Rs.83 crore. non-farm and service sector activities. The cumulative number of SCC was 10.27. 21.36.5. 2828 SHGs have opened zero-interest savings was released as grant support for SHG promotional accounts.107.009.418. Microfinance 27.915 MFIs had loan outstanding of Rs. March taking 2010.60.74.6.12.62 crore and 42.868 SHGs were promoted in select districts of Uttar Pradesh. while 16.20. respectively.09 crore. In addition. 61.93 crore in the previous year. Financial Inclusion 26.84 crore.76 lakh was given for the rating of five MFIs.679.78 crore was sanctioned to various agencies for promoting groups as 71. respectively. As on 31 March 2010. An expenditure of Rs.92.3.732.38 crore. NABARD and UNDP have entered into collaboration for financial inclusion in seven states with focus on SCs/STs/minorities.4.9. the The cumulative cumulative assistance sanctioned to Rs. 32.23 crore was sanctioned to 13 agencies. 31. but also the main contributor towards financial inclusion in the country. 1530 Micro-Enterprise Development Programmes (MEDPs) were conducted for 38.200 lakh RFA to India Post for onward lending to SHGs. of which 1.268 on 31 SHGs. Cards (SCC) with credit limits of Rs. During the year.518 participants as on 31 March 2010. Under the Rajiv Gandhi Mahila Vikas Pariyojana (RGMVP).18.87 crore for 33 agencies and RFA amounting to Rs.749 were credit linked as on 31 March 2010. NABARD has also collaborated with Indian Institute of Banking & Finance (IIBF). During the year.87 crore was sanctioned to 10 agencies taking the cumulative support to Rs.19.5. During the year. of which 12.02 crore to 42 agencies. 28.411.09 lakh groups availed of bank credit of Rs. capital support of Rs. The share of SHG loan to GLC increased to 4.25. The Microfinance programme in India has emerged as not only the largest in the world having covered about 8. The total contribution under Financial Inclusion Fund (FIF) and Financial Inclusion Technology Fund (FITF) stood at Rs. During the year.6 crore poor households as on 31 March 2009. Cumulatively. During 2009-10.195 SHGs have been credit 4 .22.05 crore were issued for facilitating hassle-free availability of credit for investment and working capital requirements of small/micro-entrepreneurs. an amount of Rs. 581 Micro Finance Institutions (MFIs) availed of Rs.843 MEDPs were conducted for 71.8 per cent in 2007-08. NABARD continued to extend support for SHG-Post Office Linkage Programme in Tamil Nadu.683 SHGs.73 crore and Rs. 1. During the year 2009-10.86 lakh involving credit limit of Rs.02 lakh Swarojgar Credit activities and Rs. grant assistance of Rs.313 SHG members on location-specific farm.40.21. grant support of Rs. As on 31 March 2009.42 crore to MFIs for capital support/Revolving Fund Assistance (RFA) as against Rs. 50.66 crore for 4.28. NABARD sanctioned additional Rs. Cumulatively.253. During 2009-10. 2. taking the cumulative credit sanctioned to Rs.49 crore 30. 676 Cluster Level Federations and 15 Block Level Federations were also formed.545.07 per cent in 2008-09 from 3. 29.24 lakh SHGs had loan outstanding of Rs.746 disbursement was Rs.33 crore of bank credit. Post Offices & Farmers’ Clubs in providing financial support for SCs/STs and Women.6.51 crore. As on 31 March 2010.

Kenya to garner potential rural development consultancies in the African continent. 33.278 distribution lakh and consisting Rs.98 lakh was utilised from the R&D Fund for activities like research projects/ studies (Rs.87 crore.03 lakh). 39. An APRACA Centre of Excellence (ACE) in Linkage Banking was set up in CMR. Bangalore and Indian Institute of Bank Management (IIBM).97 lakh). under the Summer Placement Scheme.94 crore to SEWA Bank during 2009-10.92 lakh were released to NIRB. Nabcons opened a liaison office in Nairobi. TE and HO. respectively. investments/other miscellaneous activities.5 lakh for on-lending to 50 SHGs in East Khasi Hills in Meghalaya was also sanctioned to India Post.4. the company earned an income of Rs.61. Financial support of Rs. with loans amounting to Rs.666 lakh last year.110 lakh Rs.24 lakh and Rs. Nabcons was approved as pass-through agency Ministry for Rural skill Development package.71 lakh were sanctioned respectively. training/summer placement (Rs. entailing an expenditure of Rs. During the year. as a Leading Centre of Knowledge in Linkage Banking.6.802. A survey conducted by NABARD-GTZ Rural Finance Institutions Programme (RFIP) revealed that 786 MFOs were in existence in 13 priority states.16 lakh). (MoRD). During the year 2009-10.53 lakh to National Institute of Rural Banking (NIRB). ‘The Microfinance Review’.10 lakh and Rs. An amount of Rs.25 lakh as on 31 March 2010.137.15.52 lakh. grant assistance of Rs.88.118.100. Nabcons a undertook assignments by GoI for APRACA of in Mongolia and Uzbekistan.1. Agricultural Co-operative Staff Training Institutes (ACSTIs) and Integrated Training Institutes (ITIs) for conducting 1019 programmes covering 12. During the year.20 lakh from the Co-operative Development Fund (CDF) was disbursed Research and Development Fund Activities 36.24. to the Junior L evel Training Centres (JLTCs). During the year. During the year. agri-business and social development were assigned to 57 students by 21 ROs. Guwahati.18 lakh.52 crore.787. 34. grant assistance of Rs.32 lakh was utilised from the R&D Fund during the year for capacity building of the staff of Rural Financial Institutes (RFIs).84 lakh). projects on agriculture and rural development. seminars (Rs.321. During 2009-10. 37.982. 5 . taking the cumulative release under the project to Rs.1.194. an amount of Rs. NABARD sanctioned grant assistance of Rs. with a high geographical concentration (75%) in two states (Andhra Pradesh and Tamil Nadu) and the remaining scattered over 11 states. The Centre for Microfinance Research (CMR) in BIRD brought out the first issue of its half-yearly journal. Rs.171 of lakh Rs. Under the NABARD-KfW SEWA Bank project KfW released a under implementation in Gujarat. allied sector.1.088 participants during 2009-10. the cumulative disbursement stood at Rs. assisting development and training programme under SGSY Nabcons contracted 83 assignments with a fee of Rs. Further. During 2009-10. and other activities (18.711 lakh during the year as against 122 assignments for Rs. nine research projects and 112 seminars involving grant assistance of Rs.997 from from lakh income from fund on assignments.2.70 lakh was released by NABARD to CMR taking the cumulative assistance to Rs. Other Development Initiatives NABARD Consultancy Services 35. Bangalore for conducting 21 programmes. RFA of Rs.linked by Post Offices. mutual 38. As on 31 March 2010.390.7.

15..22 crore 6 Weavers’ Groups (HWGs) were formed by banks in 12 .069 crore.155.6. 45. The SCBs reached a maximum outstanding credit of Rs. 4. NABARD continued to act as the nodal agency against Rs.4 crore for NPDP The . 46. which had executed MoU for implementing the GoI package for revival of Short Term Co-operative Credit Societies (STCCS) and amended their Co-operative Societies Acts. Relaxations were also granted to co-operative banks not complying with Section 11(1) of Banking Regulation Act.57.99 crore for credit requirements of tribals under the Development of Tribal Population (DTP).809.62 crore for National Pulses Development Programme (NPDP) and Rs. 42. West Bengal (88).542 crore.3. as against Rs. During 2009-10.1. Bihar (82) and other States (43)]. Karnataka (498).81 crore sanctioned to 76 RRBs in 2008-09. Puducherry.87 crore) and Rajasthan (Rs. for lending to the ultimate borrowers at 7 per cent. as The as against maximum Rs. Again.546.66 crore last year.592.284. 48.6.436.832. and Rural Development Bank (SCARDB) for Seasonal Agricultural Operations (SAO) was continued during the year. As an incentive to co-operative banks that covered the maximum number of new farmers during 2008-09 in the wake of implementation of ADWDR Scheme.1. Rs. Jharkhand (500).86 crore for DTP and Rs.5 per cent. 2008. in states. Karnataka.66 crore during 2009-10. The aggregate limit for ST-OSAO sanctioned to RRBs during 2009-10 was Rs. 2008-09. Assam (272). forming 99 per cent of the limit sanctioned during 2009-10. ST-SAO limits were sanctioned to 20 SCBs aggregating Rs.172 Handloom for the package announced by GoI for assisting co-operative sugar mills for loans availed of from co-operative banks. Madhya Pradesh (103).166.577.138. credit limit applications were exempt from being routed through RCS. ST refinance to State Co-operative Agriculture NABARD in 2009-10 was Rs.779.32 crore were sanctioned to five State Co-operative Bank (SCBs) (Andhra Pradesh. Rs.74. with a utilisation of 96 per cent.78 49. An amount of Rs.24 crore (59%).63 crore was during outstanding.13 crore were sanctioned to 80 RRBs under ST-SAO as against Rs. limits of Rs. During the last three years.85 crore for OPP .92 crore extended to Kerala (Rs.1.205. 1. 47. Out of Rs. 1949 (AACS).05 crore) SCARDBs at 4.143.781 Groups have been credit linked. 43. maximum outstanding was Rs. Tamil Nadu and West Bengal) for production/procurement/marketing Rs. Of these.21.265. The limits included Rs. activities.95. The credit limits included Rs. ST (weavers) credit limits Aggregate interest subvention of Rs.95 crore for the Oilseeds Production Programme (OPP).18. co-operative banks and RRBs for the year 2007-08. crore. registering a growth of 13 per cent over 2008-09.2.Business Operations 40.17.190. Production Credit 41. The total financial support extended by States [viz.80 crore last year. During 2009-10. 44. The maximum utilisation was Rs. Interest subvention for 2009-10 was estimated at Rs.448 crore sanctioned during 2008-09.600 crore. with a refinance of Rs. Andhra Pradesh (1220). additional credit limits were provided.17 crore has been disbursed for 2008-09.79 crore. Rs. Orissa (1366).318.131.177.54 crore received from GoI as interest subvention.56 crore was provided by GoI to NABARD. During 2009-10. aggregating Rs.109 crore as against Rs.180.

The release of refinance to SCARDBs as also Rs. net NPA less than 5 per cent as on 31 March 2008 and having ‘A’ Audit classification were exempted from Govt. 55. for release against interest subvention claims. hilly states.009. co-operative banks and RRBs in NER and Sikkim.136. The rates on interim finance to SCARDBs and ADFCs were 9. 2009-10 and 2010-11. guarantee. Maharashtra. of Government guarantee not forthcoming. refinance disbursement varied widely with the major share going to the South (50%) followed by North (20%). GoI placed Rs. The rate of interest on refinance to commercial banks was reduced by 50 basis points.52 crore. recording an increase of 14 per cent. SCBs that were in profit during 2007-08 with no accumulated losses. RRBs and scheduled commercial banks during 2009-10 varied between a minimum of 4 per cent and a maximum of 8. Across the Investment Credit 51. During the year. was released to the co-operative banks. A special reduction of 50 basis points was provided to commercial banks in NER.13 crore taking the cumulative number of projects sanctioned to 48 with cumulative TFO of Rs. Karnataka.08 crore as against Rs. The refinance disbursed (including ST-SAO to SCARDBs) during the year touched Rs.11.807.12. for enhancing the flow of bank credit.97 crore was sanctioned to 59 sugar mills operating in Goa. The initiatives taken during 2009-10 were: (i) NPA norms for ST(SAO) refinance to State Cooperative Banks and Regional Rural Banks were relaxed by 5 and 3 per cent. there were 38 on-going cofinance projects.5 per cent for different purposes.10.229.29 crore last year.113.3%) and Dairy Development (6%).86%) and Self-Help Groups (SHG) (26. Commercial banks had the major share at 50. ST(SAO) and ST(Others) to co-operative banks. An amount of Rs.75 and 6.535. Non Farm Sector (NFS) (28. 53. NABARD continued granting relaxation to commercial banks. 60 projects were sanctioned under cold storages/onion godowns with TFO of 7 .44 crore and Rs. Refinance to other SCB. respectively.4 per cent. regions. respectively.99 crore was sanctioned during the year.71 crore with NABARD.125. With effect from 01 March 2010. Central (12%) and others (18%). followed by Farm Mechanisation (14. 54. During the year. alternatives like pledge of government securities or fixed deposit receipts issued by scheduled banks were considered. (ii) cent per cent refinance support was extended to all agencies for all purposes. the interest rates charged were. An additional sum of Rs.35 crore. Orissa and Uttar Pradesh. 8 per cent for commercial banks. guarantee. An amount of Rs. In the event 56. Gujarat.42%) were the major sectors for which banks availed of refinance.5 per cent respectively. Under the Scheme for ‘Providing Financial Assistance to Sugar Undertakings–2007’ for payment of cane dues for 2006-07 and 2007-08 sugar seasons. Eastern States and a few other states and Union Territories for all 50. Eight new co-finance projects were sanctioned during the year with total financial outlay (TFO) of 52. However. NABARD’s cumulative sanction and disbursement were Rs. 7.pertaining to 76 co-operative sugar mills. guarantee.5 for ADFC/ NEDFi. including Section 11(1) of BR Act (AACS).5 for RRB/co-operative banks and 6. As on 31 March 2010. SCBs/DCCBs for farm and non-farm sector activities was against Govt.07 crore was estimated as claims from banks for 2008-09.62. noncompliant SCBs/DCCBs and to non-scheduled SCBs was only against Government. The rates of interest on refinance under eligible purposes.60.

042.838 units with TFO and bank loan of Rs. Of the total sanctioned accounted for 29 per cent.000 crore till RIDF XV (2009-10). The cumulative capacity created under cold storages and storage facilities for onion as on 31 March 2010 stood at 76.15.98 crore and subsidy of Rs. bridges 15 per cent and agri-related 13 per cent.90 crore and bank loan of Rs.89 crore was released.933.67 crore and subsidy of Rs.54 crore were sanctioned and subsidy of Rs. Rural Infrastructure Development 62.99 crore and bank loan of Rs.6. The scheme of Agri-Clinics and Agri-Business cent.851 projects had been sanctioned involving TFO of Rs. 3.58 crore.637. an amount of Rs.08 crore and subsidy of Rs.887. Under the Capital Investment Subsidy Scheme for Commercial Production of Organic Inputs. forming utilisation of 80 per cent.629.634.74 crore.500 crore was disbursed to the National Rural Roads Development Agency (NRRDA) under Bharat Nirman Programme (BNP).439. 963 rural godown projects were sanctioned with TFO of Rs.09 crore were sanctioned.387.58 crore. taking the total disbursements during the year to Rs. 17.556 rural godown projects were sanctioned. subsidy of Rs.74 lakh MT. A subsidy of Rs.20.900.1. of Agricultural Marketing as on 31 March 2010. The cumulative capacity created under rural godown scheme as on 31 March 2010 stood at 221. respectively.Rs.281.443.82 crore.500 crore. started a for in 1995-96. irrigation projects 27 per Rs.65.18. Disbursement during 2009-10. bank loan of Rs.4.85.54 crore taking the cumulative disbursements to Rs.718 amount (RIDF during which roads Rs. bank loan of Rs.66 crore during the year.1. involving TFO of Rs.015 projects were sanctioned involving loan amount of Rs.45 lakh MT. The scheme Infrastructure.38 crore had been phased.500 crore.1.81 crore.13 and crore. net 8 . as at end March 2010. bank loan of Rs.3. bank loan of Rs.44 crore. Centres (ACABC) was started in 2006-07.12.59 crore.03. taking the cumulative number of projects to 4.1. bank loan of Rs. respectively.82 crore and subsidy of Rs. During the year.54 crore.15.798.5. taking the total number of DDM offices to 395.1.77 crore and subsidy of Rs. Additionally. allocation of Rs. had an was roads with aggregate corpus of Rs.2.1.504. and Three infrastructure new District were prepared during the year. In addition.00. 60.28 crore.61 crore was disbursed for 76 projects involving TFO of Rs.2. Grading and Standardisation has been in operation since 2004.190. amount of rural to Rs. of respectively.578.18.3. Till 31 March 2010. 100 districts were tagged to specific DDM districts. Cumulatively.806 crore and I sanctioned to the XV). Cumulatively. The RIDF.283. During the year.196.129. social sector projects 16 per cent. 64.68. 39. As on 31 March 2010.87 crore.419. 57. year. 1. under the ongoing tranches amounted to Rs.597. sanctioned subsidy 63. The total allocation for RIDF. stood at Rs. thus. credit Potential Linked Plan (PLP) for 623 districts planning for exercise 2010-11.1.77. 573 projects with TFO of Rs. 280 projects with TFO of Rs.56 were crore and Rs.1. in of 2006-07 Bharat separate funding window rural Nirman Programme. 61. 59.02. 58.89 crore was released to 21 States and 5 UT.33 lakh had been released to 612 units as on 31 March 2010.92 crore.30. to serve as a guide in development Development Managers’ offices were opened. introduced component Additionally.18. till 2009-10. During the year 2009-10 (RIDF – XV).97 crore.49.

4.543. Assam. intervention. 68. On an average.07 crore was received from State Governments towards repayment of RIDF loans during 2009-10. and for the same.The cumulative disbursement. The programme yielded more than 50 per cent returns to the investment in all the states studied. Kerala.60.393 Programme (CDP) covering Sisal Fibre and Woodcraft clusters recommended ensuring highlighting the environmental benefits of sisal fibre products compared to cheaper plastic substitutes and encouraging individual initiatives to establish sisalbased cluster micro-enterprises. The total RIDF loan outstanding was end March 2010.395. The rate of interest payable by NABARD on these deposits continued to be at Bank rate (at present 6%). The average annual net gain in income worked out to Rs.663 per trainee. Gujarat. The study suggested that KCC penetration could be further improved in terms of extending loan such as crop loan. An in-house study on “Rural Godowns in Gujarat: An Evaluation Study” had been conducted during 2009-10. Madhya Pradesh.38 crore.82. Banks and SHGs emerged as the major sources of credit. Six DRIP studies conducted during the last two years revealed that the RNFS units in the study districts were profitable with a rate of return of above 15 per cent in most cases. NABARD carried out Rs. Two studies on Cluster fibre Development availability. Under the scheme of rural godowns. Pradesh.853 lakh person days. 70. the RIDF projects had created additional irrigation potential of 156.876 KCC holders from 178 bank branches from Co-operative banks. Uttar Padesh & West Bengal.. increased about The six study on woodcraft after the cluster revealed that the number of artisans in the times godowns with capacity of 238.74 crore. An amount of Rs. which yielded a return of 44 per cent of the fixed costs. Orissa. RRBs and CBs. 71. as on 31 March 2010.02 crore was released.17 lakh jobs and non-recurring employment of 57.37 metric tonnes were sanctioned all over the country. 20. the sample artisans produced 192 idols per annum getting an income of Rs.248.86.255. a subsidy of Rs. including Rs. The study further suggested that there is a need to adopt “mission mode” approach to make KCC into a farmers’ friendly efficient instrument for effective credit delivery system accompanied by appropriate institutional mechanism. Punjab. Maharashtra. Disbursements under RIDF I to IX have been closed.04 lakh km length of rural roads and 5. Haryana. 66. the cumulative deposits received under RIDF stood at Rs. With the receipt of Rs. Andhra Himachal Pradesh.53 lakh ha. viz.500 crore under BNP.725. Evaluation and Commodity Specific Studies 67. 3. Karnataka.670 projects through field visits.939. monitoring of 6. while disbursements continued under RIDF X to XV.16. The studies suggested enrichment of the course material with success stories. As on 31 March 2010. 69.18.95 crore as deposits from commercial banks in 2009-10.1.18.45 crore as at Seven studies conducted on Rural (REDP) Entrepreneurship Development Programme revealed that the overall success rate in setting up new enterprises worked out to 34 per cent only in terms of new enterprises and 58 per cent when wage employment too was considered. working capital for allied & NFS activities and consumption loan in the ratio of 4:2:1.153 per idol. touched Rs. 65. The study showed that major crops stored in these 9 . was conducted covering 1. Rajasthan. During the year. A study covering 14 states.84 lakh metre length of rural bridges and generated recurring employment of 81.

borrowings of SCARDBs.662. an aromatic herb.3 per cent while that of Primary Co-operative Agriculture and Rural Development Banks (PCARDB) increased marginally by 0.5 per cent while that of DCCBs increased marginally by 1. their loans outstanding decreased by 11 and 5 per cent. The studies revealed low productivity at 622 kg proceeds for milling one MT of pulses was Rs.18.26. respectively over the previous year.2. mustard. and 1.6 kg and 56.2 per cent. 75. The average yield of oil per acre varied between 37.25 per cent.337 crore. at 7 per cent of the operating cost.4 per cent. regional states.11. The net value addition per one MT of raw pulses was Rs.405 crore. Loans 76. it at the 53.1.7 metric tonnes was one of the lowest in the by country. while 365 incurred an aggregate loss of Rs. performance of all the godowns selected for the study was regular. 50 incurred losses to the extent of Rs. paddy and bajra. Total processing cost and sales tobacco. The godowns repayment 73.270. The average bank loan rural sanctioned commercial banks.godowns were cotton. lakh Patan and Kheda.. Loans issued by SCBs increased significantly by 58 per cent and that of DCCBs decreased by 3. Out of 697 PCARDBs. respectively.702. The utilisation of capacity created was 67.8 per cent in individual-owned godowns. Although the state of Gujarat tops the list with the maximum number of rural godowns. The aggregate accumulated losses of Structure (LTCCS). Eleven SCARDBs earned an aggregate profit of Rs.24.5 which lakh non-recurring recurring employment.4 viz.3 individual-owned per cent. was taken up in the state of Uttar Pradesh which accounts for 80 per cent of the crop area under mentha. increased by 24 and 16 per cent.2 per cent in society-owned godowns and 68. While the deposits of SCBs and DCCBs as on 31 March 2009. decreased marginally by 3.6 lakh. 72.1.14.5. The net income per acre varied between Rs.7 lakh of private investment in the selected generated districts 3. respectively over the previous year. Capacity Building of Client Institutions Institutional Development 74. In the Long-Term Co-operative Credit while 8 incurred an aggregate loss of Rs. the average capacity of godowns in the state at 217. castor.50 kg.765 and Rs. 326 earned an aggregate profit of Rs.1. respectively. While 320 out of 370 DCCBs earned overall profit of Rs.89 lakh and Rs. The scheme of rural godown had injected Rs.6 per cent of the available storage attained space.06. While loans issued by SCARDBs and PCARDBs increased by 17 and 16 per cent.099 and Rs.25.87.625. The input-output ratio was 1:1. banks and cooperative banks was Rs. cumin.2. the borrowings of SCBs decreased by 7 per cent and that of DCCBs increased by 6 per cent. 26 out of 31 SCBs were in outstanding of SCBs decreased marginally by 3.800 and the net income realised from processing plant per month worked out to Rs.150 crore. The gross value of production from the sale of menthol crystals/flakes worked out to Rs.400. Rs. as on 31 March 2009.360 crore.207.206 crore. While the society-owned godowns attained break-even level at 25.611 crore.395 crore and the remaining 5 were in loss (Rs.77. During 2008-09. respectively. per Five studies on pulses were conducted in five hectare.71 crore).698 and Rs. 10 . The per acre cost of cultivation of mentha varied between Rs. A study on Mentha. profit aggregating Rs.59 lakh. over the previous year.

15 crore for SCBs and DCCBs as on 31 March 2009.433.544. and highest in North-eastern (37. The average loan recovery of SCBs and DCCBs as on 30 June 2009 improved marginally to 92 and 72 per cent from 85 and 56 per cent.4%) regions. from Rs. showing a decline per cent. the number of loss-making Regional level NPAs of SCBs vis-à-vis the all- India average was the lowest in Northern (3. While PCARDB in Central. 80. At the DCCB level. Western. 79.206.3 and 39.3 and 18. declined to 40 and 40. NPA was estimated to be Rs. 11 . as on 31 March 2009. loan recovery of SCARDB and PCARDB declined to Rs.95 crore.47 crore.9 and 17. 84. In absolute terms. the percentage of gross PCARDBs increased profits to NPA to total loans and advances outstanding in respect of both SCBs and DCCBs decreased to 11. NPAs of DCCBs in Eastern. In the case of DCCBs.50 crore and Rs.937.842. during the previous year. as on 30 June 2009.5.17.40 crore to Rs.26. As on 31 March 2009. SCARDBs reduced their losess by 65 per cent from the previous year.4.392. aggregate profit of SCARDBs was Rs. loan recovery of SCBs improved from Rs.DCCBs.3. from 12. northern region increased their profits.0 and 43.2.39.81 crore and Rs.190.5.57326. respectively. over the previous year.73 crore. At the aggregate level. SCARDBs and PCARDBs declined in 2008-09 with a slight increase for SCBs.5 per cent.33.893.4. SCARDBs in the 83. As on 31 March 2009. and in 9 SCARDBs and in 265 PCARDBs in the LT Structure. 81. In the LT structure. Western and Eastern regions increased their profits. 82. as on 30 June 2009. During 2008-09. over the previous year.860. duly elected Boards were superseded in 8 SCBs and 91 DCCBs in the ST Structure. it increased from Rs. number of profit-earning Rs. 77. During 2008-09. the PCARDB in the Northern region incurred further losses. profits during 2008-09 increased across the regions. In absolute terms.03 crore.1 per cent as on 31 March 2009. In absolute terms. 21 SCBs and 9 SCARDBs had executed “DAP/MoU” (Phase IV) with State Governments and NABARD.54 crore to Rs. Eastern and Western regions moved from loss in 2007-08 to profits in 2008-09. Central and North-east regions were higher compared to those in the previous year. registering a decline of 7 and 4 per cent.44 crore and Rs.367. respectively. respectively. 78.763. The percentage of NPA to total loans and advances outstanding in the case of SCARDBs and PCARDBs 85. from 35.1 %). At the aggregate level. respectively.73 crore and Rs. The total NPAs of SCARDBs and PCARDBs were estimated at Rs. PCARDBs incurred losses of Rs. respectively. respectively. the overall profits of SCBs declined to 30. During the year 2008-09.3 per cent from 50 and 42 per cent. over the previous year. while those in Central. respectively. During the same period.255 crore. the number of profit-making DCCBs increased while the number of loss-making DCCBs reduced. of 23 and 14 increased to 37 per cent over the previous year. At the aggregate level. However. as on 31 March 2009. At the aggregate level.154 crore during 2008-09.9 per cent. profits of SCBs decreased in the Northern region (9%).3. The average loan recovery of SCARDBs and PCARDBs.929.77 crore.5 per cent as on 31 March 2008.10 crore.

RRBs had opened 153. The total number of RRBs as on 31 March Revitalisation Human 2010 was 82 (46 amalgamated and 36 stand alone). as on 31 December 2009. negative net worth as on 31 March 2007. Under the Financial Inclusion programme. Chaturvedi.127 Secretaries of PACS from 14 States. Ministry of Finance.3. 99.619 PACS functionaries and 3.74 crore and Rs. respectively.795. 87. Under the GoI package for STCCS. of which 13.626 PACS across 25 states.181. Managing sanctions Ten and disbursements under CDF were Rs. crore.81. The special audit of CCBs has been completed in twelve states and in the remaining States.219 elected Board Members of PACS from 11 States. by NABARD as GoI share for recapitalisation of 49.896 district level trainers. 95. with the formation of four new amalgamated RRBs in 2009-10.51 Business Aspirations 91.755. constituted under the 96. As on 31 March 2010. respectively. training on CAS/MIS has been provided to 61. the to 27 RRBs. was state governments sponsor banks concerned. Point of Sale (PoS) devices and mobile technology. to review the need for a separate package for the Revival of LTCCS submitted its report to the Government of India on 25 February 2010. as on 31 March 2009.444. who in turn. Against the target of opening 2. C.80 crore as their share. having and recapitalisation received from in 79. two ODI and two follow-up visits were conducted for co-operatives during the year.1. In addition. amendments proposed by the remaining 11 States have been vetted by NABARD.78 crore. had adopted lenders 88. Cooperative Societies (CSA). 93. in the ratio of 50:15:35.530 PACS out of 95. IAS. RRBs. The entire amount of Rs. Addl.22 crore has been released. of India. and cumulative respectively.91. The Task Force. During the year. Fifteen RRBs were identified from 14 States for R & D project on Financial Inclusion with ICT-based solutions.81 lakh ‘No Frills’ Deposit 12 . The special audits of STCCS was completed 92. trained 1. programmes.97 crore of support GoI. it is in progress. in different regions and client groups in the country. 14 States Acts have amended The their draft 24.000 branches in the next two years. sanctions and disbursements Secretary (FS). So far. As on 31 March 2010. An amount of Rs. 369 CEO of CCB and 1.671 Directors of CCB/SCB. RRBs had opened 474 branches during 2008-09.221 had been freed from debt to moneylenders. training has been imparted to 226 master trainers from 16 States. taking the total number of branches of all RRBs to 15. were Rs.86.531 villages. Govt.3.972.764 PACS in fourteen states. through use of smart cards. even as previous amendments in three of these States are awaiting Presidential assent. while the state governments have released Rs.7. training has been imparted to 72.76 crore and Rs. available information show that RRBs had opened about 263 branches in 2009-10 taking the total number of branches to around 15. till 31 March 2010. Chairmanship of Shri G.471 bank supervisors/ departmental auditors. 94. In order to free the farmers indebted to money through debt swap. 89. 90. under Co-operative Development Fund (CDF).

etc.2. 3 in Western and 10 in Southern region had registered a recovery performance above the national average.91 crore posted by 6 RRB in 2008-09.256. The Board of Supervision (BoS). constituted K. 97. The aggregate reserves of RRBs that had wiped off their accumulated losses in 2008-09 and attained sustainable viability.912. disposal of complaints against supervised banks. Reserve Bank of India. As on 31 March 2010. (GUISCA). Gujarat Rajya Handloom. as compared to Rs. All 15 RRBs in the Northern.8. It reviewed the functioning of co-operative banks and RRBs including insolvent/weak banks. violation of Credit Monitoring Arrangement (CMA)/ exposure norms. aggregate reserves of RRBs increased by 38. 101.Accounts out of a total number of 935. under the Chakrabarty. etc. ineffective funds management.66 lakh during the corresponding period. while loans and advances (outstanding) increased by 39. Borrowings also increased by 61.10. The Chairmanship Committee of Dr. statutory inspections of 343 banks (30 SCBs. 98. as on 30 June 2009. Handicraft and Audhyogic Sahakari Federation Ltd. migratory analysis of supervisory rating of SCBs. Deputy Governor.35. appraisal and post disbursement follow up of loans. deficiencies in sanction.7. submitted its Report to GoI on 30 April 2010. scheduling of amalgamated RRBs.51 crore. Six RRBs had a recovery percentage of above 90 while five others had a recovery percentage of less than 60 per cent.74 per cent while deposits and investments increased by 44. Supervision of Banks 102. inadequate net margins. The number of loan accounts stood at 170. inadequate risk management systems. 100. Over a period of three years (2008-10). frauds.9 per cent. adherence to CMA norms by co-operative banks. high NPAs. compliance of banks to statutory provisions.823. The aggregate gross NPAs of all RRBs declined from 4. lack of corporate governance.13 crore.550.9 per cent over the previous year. to examine the financials of RRBs with CRAR of less than 7 per cent and suggest measures to bring it to at least 9 per cent in a phased manner. DCCBs and RRBs. weak internal checks and control system.7 per cent as on 31 March 2010.4 per cent in 2009-10.1 per cent. constituted by the Board of Directors of NABARD in 1999. met four times during the year 2009-10.39 crore and the net worth increased to Rs. respectively. The accumulated losses of RRBs have decreased by 30. Financial projections for RRBs for the year 2009-10 indicate that they were likely to improve their performance with 78 out of 82 RRBs showing pre-tax profit to the extent of Rs. were conducted. During 2009-10. Some of the supervisory concerns that emerged provisions were and non-compliance KYC/AML with statutory improper standards. increased to Rs.9 per cent as on 30 June 2008.55 crore in 2008-09. 252 DCCBs and 61 RRBs) and voluntary inspections of 16 SCARDBs and one apex society. as at 31 March 2009.C. 99.4 per cent. frauds. estimated at 79. to 3. The remaining four RRB incurred losses of Rs.4 crore as compared to Rs.1 per cent.4 and 56.54 lakh deposit accounts opened as on 31 March 2009. The recovery performance of RRBs was 103. 88 banks (5 SCBs and 83 DCCBs) were not complying with the provisions of 13 . application of IRAC norms.1. compared to 77. 104. improper valuation of securities and irregularities in investment portfolio. viz.

1934 and 49 complied with Section 42(6)(a)(ii) of the Act. Sixty seven DCCBs and three SCBs were granted exemption from the provisions of Section 11(1) of the Act. 105. Section 19 of the Banking Regulation Act 1949 (AACS) concerning restriction on holding of shares. out of the 16 scheduled SCB. 108. 14 . The licensing norms for co-operative banks had 109. 29 had between 50 per cent & 70 per cent and 18 RRBs had PCR more than 70 per cent. working out CRAR by PACS and disclosing it in their balance sheets. Master circular on disclosure norms and revised guidelines on Long Form Audit Report (LFAR) were issued to the RRBs. prudential norms on asset classification. 5 SCBs and 83 DCCBs did not comply with Section 22(3)(a) of BR Act. 1949 (AACS).3. During the year. The number of scheduled SCBs remained unchanged at 16.02 crore (2.55 crore (22. need for timely completion of audit. The erosion in the value of assets of the 8 RRBs not complying with Section 42 (6)(a)(i) of the RBI Act stood at Rs. 106. Act 1949 (AACS) by co-operative 107. clarifications on compliance to Section 6 of B. 1934 by RRBs. the number of scheduled RRBs stood at 75 as on 31 March 2010. As a one-time measure.054. also. with Section 42(6)(a)(i) of RBI Act. while applications for grant of exemption in respect of 17 banks (1 SCB & 16 DCCBs) were under the consideration of RBI/GoI. Guidance note on Credit Risk Management (CRM) was issued to co-operative banks and RRBs. out of 82 RRBs. ibid. up to 31 March 2010. importance of been revised by RBI. 70 complied with Section 42(6)(a)(i) of the RBI Act. As on 31 March 2010. RBI had issued licenses to 8 SCBs and 98 DCCBs during the year. and three were not complying with Section 42(6)(a)(ii) of the Act. RBI.27 per cent). detailed guidelines/instructions/ circulars/clarifications were issued to the SCB/DCCB/ SCARDB/RCS on a wide-ranging number of issues: on prevention/monitoring of frauds.38 crore as on 31 March 2010 with erosion in their deposits to the extent of Rs.Section 11(1) of the B. 1934. judicious utilization of funds post revival package.111. 1949 (AACS). and 9 SCB and 214 DCCB did not comply with Section 22(3)(b) of the Act. ROs were issued guidelines in dealing with cases of non-compliance with the provisions of Section 42(6)(1)(i) of the RBI Act. As on 31 March 2009.60%) in addition to their entire share capital.R.780.785. With this. which had affected their deposits to the extent of Rs.5 lakh.12. RPCD delegated to its Regional units the powers to grant licenses to cooperative banks. it was found that 39 RRBs had Provision Coverage Ratio (PCR) below 50 per cent. Consequent upon the revised licensing norms. ibid by GoI. and ADWDR 2008 scheme implementation. Thirtynine amalgamated RRBs were included by the RBI in the Second schedule of the RBI Act. the role of Chairman/CEO in ‘Fraud Risk Management System’ in banks.09 crore. Operational Manual for co-operative banks was prepared based on inputs and feedback obtained from NAFSCOB on many policy issues. provisioning & income recognition in PACS. Similarly. expeditious balancing of books and reconciliation of inter-branch accounts. As on 31 March 2010. thus increasing the number of licensed banks to 195 (22 SCBs and 173 DCCBs) as on 31 March 2010. Act. The total erosion in the value of assets of these 88 noncompliant banks aggregated Rs. two were not complying banks and procedure for valuation of unquoted securities were provided. 1934 in regard to minimum capital requirements of Rs.R. after they were found complying with Section 42(6)(a)(i) &(ii) of the Act.

Organisation and Management
110. During the year, the Board of Directors of NABARD met five times. The Executive Committee and Audit Committee met six times and four times, respectively, while the Sanctioning Committee for loans under RIDF and Risk Management Committee of the Board met seven times and three times, respectively. As on 31 March 2010, the Board of NABARD comprised eight new directors under Section 6 (1) (d) and 6 (1) (e) of NABARD Act, 1981. deputed for 153 off the shelf programmes, workshops, seminars deputed addition, and conferences for organised by various training In 663 institutes of repute. abroad 45 programmes, exposure training Further, 120 officers were various overseas visits, seminars, etc. programmes covering

employees were conducted at NBTC, Lucknow and ZTC, Hyderabad. Pre-promotional training programmes were also conducted promotion to Grade for 47 Group ‘B’ staff for ‘A’ and one pre-retirement

programme was conducted for 5 Group ‘B’ and 111. Board of Directors decided to analytically Group ‘C’ staff. examine the present and future role of NABARD and reposition the institution, to enable it to effectively address initiative, emerging termed and future challenges. Reposition’, This was ‘Project 115. During the year, 51 employees availed of facilities under the incentive scheme for professional studies in part-time and distance learning courses. Study leave was granted to four officers under the staff scheme for higher studies in well-known universities/institutions in India as well as abroad. of India conducted 12th

started from March 2010 and will be for a period of 18 months. The Bank has engaged consultancy agency for the purpose.

112. Reserve

Bank

Other Matters
116. During the year, 108 officers in Gr. ‘A’ of RDBS were appointed. Further, 695 promotions were effected in various grades of the officers cadres of which 8, 34 and 92 were promoted to Gr. ‘F’, ‘E’ and ‘D’,

Financial Inspection of NABARD with reference to their financial position as on 31 March 2009 between 27 January to 26 February 2010.

Overseas visits by top management
113. The Chairman attended the 57th EXCOM of APRACA held in Chiang Mai, Thailand in March 2010. The Managing Director attended the Regional workshop of FAO in Manila, Philippines in October, 2009.

respectively. As at end March 2010, NABARD has total staff strength of 4,770 employees of which 1,247 belonged to SC/ST constituting 26 per cent.

117. Industrial relations in the Bank continued to be harmonious during the year. Periodic discussions were held with the management and All-India NABARD Officers’ Association/All- India NABARD Employees’

Training and Skill enhancement
114. During the year, 85 training programmes covering 1,675 officers were conducted at NBSC, Lucknow in functional, behavioural and technical areas. disaster Fifty four officers were deputed for tailor-made management, etc., designed to meet programmes delivered on post-harvest management,

Association.

118. Central Complaints Committee at Head Office and Committees at ROs are functioning for prevention of sexual harassment of women at the work place.

119.

Preventive vigilance inspection of 8 ROs/TE The bank observed

specialised training needs, while 424 officers were

was undertaken during the year.

15

Vigilance

Awareness

Week

from

2

November

to

6 November 2009. 120. During means of the year, the bank’s intranet was

Financial Performance & Management of Resources
124. During the year 2009-10, the total Working Funds increased by 15.3% from Rs.1,18,176 crore to Rs.1,36,656 crore. The increase was due to net inflow of RIDF Deposits (Rs.12,846 crore), STCRC Fund (Rs.5,000 crore), Commercial Papers (Rs.2,499 crore) and Term Money Borrowings (Rs.519 crore). The borrowings of NABARD (Rs.25,703 crore) constituted 18.48 per cent of its working funds as on 31 March 2010.

expanded to collect data/returns from RO/TEs by On-Line Returns Management System (ORMS) to generate MIS reports. The accounting

software was made bilingual and upgraded with additional features to include preparation of e-TDS and other monitoring reports. During the year video conferencing facility and enhanced Human Resource Management System software was operationalised in the bank.

125. The funds utilised for ST (SAO) loans and ST(OSAO) loans advanced to SCBs and RRBs together increased by Rs.7,177 crore (42.5 per cent)

121. Inspection of 16 ROs, one TE and 19 HO departments were undertaken during the year. Concurrent audit of HO departments, viz., Finance Department, Accounts Department, GAD, Premises Department, Operations, Co-financing Information Cell of ICD, Treasury etc., System Audit,

to Rs.24,073 crore as on 31 March 2010 from Rs.16,896 crore as at the end of previous year. RIDF loans increased to Rs.60,255 crore as on 31 March 2010 compared to Rs.45,616 crore at the end of previous year, recording a net outflow of Rs.14,639 crore during the year.

continued to be outsourced to external auditors. 126. The total income of the Bank was Rs.7,964.80 crore for the year 2009-10 ( Rs.7,050.68 crore during the 122. The Bank continued to promote the use of Hindi as an effective tool of mass communication for its business development. Official Language Implementation Committee is constituted in all the offices to monitor the implementation of Rajbhasha policy of GoI. On-site inspection of eight ROs and six HO departments were also conducted during the year with a view to ensuring strict compliance with Rajbhasha policy. previous year). After meeting the expenditure of Rs.5,692.34 crore as against Rs.5,063.15 crore in the previous year towards interest/financial provisions crore as charges, and against establishment/other amounted to expenses,

depreciation, the profit before tax for the year Rs.2,272.45 Rs.1,987.53 crore in 2008-09. After providing for provision/adjustment for taxes, the profit after tax during the current year amounted to Rs.1,558.26 crore as against Rs.1,390.13 crore for the previous year. Amounts of Rs.350 crore, Rs.400 crore, Rs.10 crore

123. During the year, Members of the Drafting and Evidence Sub-Committee of the Parliamentary Committee on Official Languages visited Raipur and Hyderabad offices of the Bank. in Hindi. During the year, ROs brought out 102 PLPs and 54 inspection reports

and Rs.679 crore were transferred to Special Reserve u/s 36(1) (viii) of IT Act 1961, NRC (LTO) Fund, NRC (Stabilisation) Fund and Reserve Fund, respectively. Further, an aggregate amount of Rs.190 crore was transferred to various Funds maintained by the Bank for development purposes.

16

I
Rural Economic Environment
The Indian economy is estimated have registered a growth rate of 7.4 per cent during 2009-10 as against 6.7 per cent witnessed during 2008-09. Due to the near drought conditions, the GDP in agriculture is estimated to show a meagre growth of 0.2 per cent during 2009-10. However, industry and services sectors registered comparatively better growth rates. This order of growth performance is expected to improve per capita income (at 2004-05 prices) from Rs.31,821 during 2008-09 to Rs.33,588 during 2009-10, an increase of 5.6 per cent during 2009-10, as against the previous year’s estimate of 5.0 per cent.

Global Economy
1.2 The growth in the global output witnessed 36.5 per cent of the global output of cereals, oil crops and milk and milk products, whereas, India’s share, on a two-year average basis, was 9.2 per cent, 8.4 per cent and 15.9 per cent, respectively (Table 1.2). deceleration from 3.8 per cent in 2007 to 3.0 per cent in 2008, but is estimated to have declined to (-) 0.6 per cent in 2009 due to recessionary conditions in advanced economies. Notwithstanding some positive signs of revival amidst ongoing policy support and improving financial market conditions, led by the Asian economies, especially China and India, the time horizon for global recovery remains uncertain in view of subdued consumption demand, increased unemployment levels and the anticipation of further contraction in demand. 1.3 In emerging and developing economies, the
Growth A. GDP (Real) a. World b. Advanced Economies i. United States ii. Euro Area iii. Japan iv. Newly Industrialised Asian Economies c. Emerging and Developing Economies i. Developing Asia ii. China iii. India iv. ASEAN - 5** Table 1.1: Overview of Global Economy (Annual per cent change) 2008 2009 2010*

3.0 0.5 0.4 0.6 (-)1.2 1.8 6.1 7.9 9.6 7.3 4.7

(-)0.6 (-)3.2 (-)2.4 (-)4.1 (-)5.2 (-)0.9 2.4 6.6 8.7 5.7 1.7

4.2 2.3 3.1 1.0 1.9 5.2 6.3 8.7 10.0 8.8 5.4

growth rate decelerated to 6.1 per cent in 2008 and further to 2.4 per cent in 2009 compared to 8.3 per cent in 2007. The global meltdown also impacted the economic growth of China (9.6 per cent) and India (7.3 per cent) in 2008 and it is estimated that the growth in China and India would have further declined to 8.7 per cent and 5.7 per cent, respectively in 2009. With the gradual picking up in global trade, the other indicators of economic activity such as capital flows, assets and commodity prices remain buoyant. The projected growth rates in China and India in 2010 are 10.0 per cent and 8.8 per cent, respectively (Table 1.1). 1.4 As per the estimates by Food and Agriculture

B. Consumer Prices a. Advanced Economies b. Emerging and Developing Economies C. Trade Volume (goods & services) a. Imports by Emerging and Developing Economies b. Exports by Emerging and Developing Economies D. Commodity Prices a. Oil Prices b. Non-Fuel Prices 36.4 7.5 (-)36.3 (-)18.7 29.5 13.9 8.5 4.0 (-)8.4 (-)8.2 9.7 8.3 3.4 9.2 0.1 5.2 1.5 6.2

Organisation (FAO), the world production of cereals decreased by 2.0 per cent; oil crops and milk and milk products increased by 8.2 per cent and 1.3 per cent, respectively in 2009 over 2008. Low income food deficit countries accounted for 41.8 per cent, 30.6 per cent and

* Projections; ** Includes Indonesia, Malaysia, Philippines, Thailand and Vietnam Source: World Economic Outlook, IMF, April 2010.

17

0 52.4 @Rice is measured in terms of paddy (unhusked).6 100.1 6.2 per cent during 2007-08 to 6.5 30.0 3.Table 1.7 129.2 6.4 54.6 6.1 2284.4 116.2 137.6 2.1 16.6 41.9 10.9 2009** 200.2 328.7 216. June 2010) and GDP at current prices.8 57.6 2.9 36.3 21.0 37.7 93.0 49.6 100.1 248 36. there has been a recovery during 2009-10.3 139.2 per cent in its GDP during 2009-10 due to delayed monsoon and the consequent declines estimated in the production of foodgrains and oilseeds.5 250. The increase in the growth rate could be attributed partly to the growth rates of over 8 per cent in industry and services sectors.2 32.6 Sectoral analysis of growth rates between 2005-06 b.6 2.6 18.2 2.3 27.9 1241.7 100.7 35.0 407.7 107.0 1.4 242.3: Economic Indicators Annual percent change 2007-08 2008-09 9.6 691.7 per cent during 2008-09.5 per cent in ^ : Provisional.2 335.7 1. 2. Indian Economy A. Min.5 170.4 per cent (Table 1.6 -- 9.9 10 **: Forecast.2 2238.4 3. Imports g. CMIE.2 43. 1.4 94.1 6.3 973.8 6.7 3.2 104. Central Statistical Organisation.0 45. GoI.7 147.0 3.4 24.4 126.2 (-)6.2 1. Oilseeds & Milk products in the World. At disaggregated level.0 1042.7 (-)0. *: Estimated.7 125. of Finance (DEA.8 1. 18 . Source: 1.5 35.2 113.8 36. Foodgrains Production d.4 943.2: Production of Cereals.8 49. ***: Dairy year commences from April Source: FAOSTAT @FAO Statistics Division 2009. GDP from Agriculture & Allied Activities c. 1.8 5.8 363.1 454.4 0.8 26.4 19.7 257.5 215.3 (-)0. However. forestry and fishing sector is likely to register a growth of 0. Exports Trade Balance* (as % of GDP) Gross Domestic Savings (as % of GDP) Gross Domestic Investment (as % of GDP) Fiscal Deficit** (as % of GDP) External Debt (as % of GDP) and 2008-09 revealed a mixed trend.6 26.2 8.3 47.2 131.8 40.2 1009.3).0 3.9 973.5 36.2 34.7 36.6 16.7 1.6 20.0 20.8 12.6 1.0 39.0 701. Milk and Milk Products 2008 109.5 2009-10^ 7.7 % share in World 8.0 29.7 2009* 112. a.5 60.9 35.0 365.1 (-)0.5 4.1 5.7 6.7 1228.1 15.3 per cent in industry and 8.1 26. the overall growth rate during 2009-10 comprised of growth rates of 0. Inflation as measured by WPI f.4 37.2 (-) 4. 2008 and 2009 (Million Tonnes) Country/Group Cereals Production@ 2008* India*** Asia Africa Central America South America North America Europe Ocenia World Developed Countries Developing Countries Low Income Food Deficit Countries Least Developed Countries 216.4 270 129.8 8.1 Oil crops Production 2008-09* 2009-10** 34.3 13. the contribution of agriculture.4 29.2 % share in World 15.5 16.2 4.9 41.4 10.0 440.2 164.1 57.6 461. June 2010.7 134. with an estimated growth rate of 7.2 36.3 % share in World 9.0 493.9 0.3 25.3 8.0 11. 9.2 948.Div).3 254.5 Economic Scenario Gross Domestic Product After a phase of deceleration in growth from Particulars a. ** : GDP at current prices (Revised estimate).6 155. * : based on the balance as per DGCI & S (CMIE.7 457.5 31.8 (-)8.6 0. Overall GDP Table 1. Industrial Production e.1 36.5 3. December 2009.2 per cent in agriculture and allied activities.

6) 9. Barring food articles.7 (100. electricity.0) 2007-08 (RE) 4. Despite the global financial crisis.533 Rs.0) 2006-07 3.769 crore and Rs.10 The inflation rate as measured by variations in the Wholesale Price Index (WPI) on a monthly basis remained volatile during 2009-10.6 per cent.65.126 crore. the food articles prices shot up from 8. to have accelerated from 35.5 per cent and 56. 2009-10 Rs.8 per cent during fiscal 2009-10.5 (56.0) 2008-09 (QE) 1.26.9 per cent during the same period.69. as a d. respectively.2 per cent.7 (28.9 per cent in 2007-08 to 9.4) 6.3 per cent in 2008-09 to 2.6) 3.3 (28.1) 12.9) 7.9 (28.4) 9.9 per cent in 2008-09 to 69.6 per cent. inflation in other commodity groups receded during 2009-10.2 (100.9 The Gross Domestic Savings (GDS).2) 9. 3.5 (100.55.4). At sectoral level.7 (17. 70. Inflation 1.4: Sectoral Growth Rates of GDP (2004-05 prices) Sector Agriculture & Allied Industry# Services Total GDP at factor cost 2005-06 5.1 (53.11 The economy showed progress in integrating with the world economy as evident from the improved trade to GDP ratio at 38. gas and water supply and construction Source: Central Statistical Organisation. but during the same period.5 (54.5.9 per cent in 2008-09 as compared to 22. 28. as a proportion to GDP.0 per cent .27. manufacturing.8) 9.5 per cent to 12.0 per cent to 14.2) 9.6 per cent.2 per cent during 2009-10.3 (27.6 per cent in 2009-10.1 per cent in 2007-08 to 12.9) 11.Table 1.5.4 (100.0) Figures in parentheses indicate percentage shares to total GDP #: Includes mining & quarrying. The overall share of consumption expenditure.5 per cent during 2000-01.5 (28. Within the private sector.9 per cent.4 per cent in 2009-10.7 (100.0) 2009-10 (RE) 0. the capital formation in public sector increased from 8. during 2009-10.1) proportion to total private consumption has been gradually miscellaneous goods and services has been increasing. Trade 1. 1. 1. On the overall. that in per capita private consumption expenditure decelerated from 5.8 The private expenditure on food items as a declining since 2004-05 while that of c.2 (54.4 per cent in 2008-09 and during the same period. respectively. declined from 36.5) 8.2 (18. the investment rate for the corporate sector declined from 16.7) 10. b. respectively during 2008-09. respectively during 2009-10 (Table 1. both private and public in GDP is estimated to decline marginally from . GoI services as compared to growth rates of 1.8 (56.4 per cent during 2007-08 to 32.9) 9. in 2008-09.9 per cent and 9.12. the contributions of agriculture.4 per cent during fiscal 2008-09 to 3.6 per cent to 24. Savings and Investments The Private (at Final Consumption prices) are Expenditure estimated crore at and (PFCE) and Government Final Consumption Expenditure (GFCE) in 2004-05 as against Rs. But it is estimated that the Gross Domestic Investment (GDI). The overall inflation rate decreased from 8. during 2008-09.7 per cent in 2008-09 and that of the household sector increased from 11.860 crore. While the growth in per capita income accelerated from 5.7 Consumption.0 per cent in 2008-09 to 5. both exports 19 proportion to GDP.9 per cent.6 per cent during 2008-09 to 37.6 (15. the private sector capital formation decreased from 27. (Box 1.7 (16. 1.2 (14.5 per cent during 2008-09 and this proportion is estimated to increase to 34.8 per cent.8) 10.0) 9. industry and services to the GDP are estimated at 14.

0 per cent. (iii) rising farm production costs on the supply side and (i) rapid economic growth. But the performance of agriculture sector in terms of its share in total exports was quite discouraging.1) 249. Of late. (v) allocating additional foodgrains to various States/UTs under Public Distribution System (PDS).02 (-7.8 per cent respectively.1 Food Inflation Market prices for major food articles such as grains and vegetable oils have risen in recent past. this is not the first time India is experiencing inflation. But during 2009-10.48 (42. food inflation and non-food inflation were 20.5) 162.5 3. While the Reserve Bank of India has been trying to absorb excess liquidity by various financial instruments such as Statutory Liquidity Ratio (SLR).9 10. (ii) rising per capita consumption. The volatility of the inflation rate as measured by variations in monthly WPI during 2009-10 has been depicted in the Diagram.3) 176.02 billion during the year 2009-10. June 2010 20 .3 3.0) 299. CMIE.33 (19. Exports and imports are expected to reach US$ 176. Cash Reserve Ratio (CRR) and Repo & Reverse Repo Rates.8) 185.Box 1.8) Share of agriculture* in total exports (%) 10. the Reserve Bank of India and the Government of India have been taking up various monetary and fiscal measures.06 (24.5 3. (ii) reducing import duties. the estimated food inflation and non-food inflation were 14. (iv) banning exports. (iii) removing levy obligation in imports.1 29. Kolkata 2. and imports in US dollar terms registered growth rates of 12.7 -- *: Agro products ^: Provisional Figures in the parentheses refer to percentage change over the previous year Source: 1.08 (23.5).1) Share of food & allied products in total imports (%) 4. (iii) diversion of crop output for bio-fuels production and (iv) dollar devaluation on the demand side.6 -Total Imports 111. (ii) escalating crude oil price.6 per cent and 3.0 2. the Government of India has been trying to increase supply of foodgrains by (i) allowing import. Important among them are (i) adverse weather conditions and lower growth in agricultural production.17 (-3.3 and 19. Many factors have contributed to the current run up to the high food prices.6) 149. All these factors have contributed to the demand-supply mis-match causing a rise in food prices. as the economy has shown strong signs of recovery. However.51 (30. both the Reserve Bank and the Government have sought to gradually exit from stimulus packages.4) 126.17 billion and US$ 278.0 11. To arrest food inflation.3 9. Table 1.1) 183.10 (12. but the current state of inflation is quite different.8 per cent respectively. respectively during 1991-92.98 (29.26 (22.15 (33.5: Trends in Exports and Imports (US$ billion) Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10^ Total Exports 83. DGCI &S.79 (35. For instance.8) 278.2 per cent and 18.7) 103. with the share of both exports and imports from agriculture sector decreasing (Table 1.

B. **: Cumulative position between 1 October and 31 December **: Full Reservoir Level in 81 major reservoirs (accounting for 63% of total reservoir capacity in the country) as at the end of the season @ : As on 1 October in the case of SW Monsoon and 31st December in the case of NE Monsoon Source: Department of Agriculture & Cooperation (National Crop Forecasting Centre). During the north-east monsoon.98 billion cubic metres. Madhya Pradesh.Divisions with Normal/Excess Deficient/Scanty/No Rain C.7) Table 1. Reservoir status (% of FRL)@ 5 30 6 120. a. Central and South Peninsular . 27 per cent. Bihar. the cumulative rainfall received for the country as a whole was 135. the country as a whole received 689.15 The impact of the delayed and sub-normal monsoon during kharif season was reflected in reduced area under crop cultivation. they were nevertheless above their previous season rainfall in Central India (51 per cent) and South Peninsular India (10 per cent). which was mainly in the states of Andhra Pradesh.2 per cent of the Full Paddy field b. 23 sub-divisions recorded excess/normal rainfall and the remaining 13 sub-divisions recorded deficient rainfall.1 2008 -2 32 4 113.6: Trends in the Rainfall and Water Storage Particulars South-West Monsoon* 2007 A. Scanty: 60% or less.87 billion cubic meters was 28.44 million hectares less than the area covered during the corresponding period of kharif 2008. The major decline in area was under rice (6.14 Total live water storage in 81 major reservoirs across the country. Reservoir Level of 151. December). The area sown under various crops during kharif 2009 was 95.3 2008 -31 6 30 77.07 million hectares.8 Normal: +_19%. Government of India 21 .7 2009 -36 13 23 90. No Rain: 100% *: Cumulative position between 1 June and 30 September. Out of the 36 sub-divisions.0 per cent higher than the previous year’s level of 38. Crop acreage 1.12 During September) 2009.5 mm.B. The rainfall received in all divisions North-West. 1. even so. by the end of March 2010 at 42.77 billion cubic metres. Deficient: -20 to -59%. North East. Uttar Pradesh and West Bengal.6). respectively.1 million hectares). While the cumulative rainfall received in North-West India and North-East India was 21 per cent and 19 per cent below their previous monsoon. Cumulative rainfall (% variation from normal) Number of Sub. which was 8 per cent above the LPA.4 North-East Monsoon** 2007 -32 9 27 92.3 mm rainfall which was 36 per cent less than the Long Period Average (LPA). Agriculture & Rural Economy Rainfall situation the South-West monsoon (June- 1. Jharkhand. which was 5. Excess: +20% or more.was below the LPA by 36 per cent. 23 recorded deficient rainfall and the remaining 13 recorded excess/normal rainfall during the South-West monsoon in 2009 (Table 1. Ministry of Agriculture.13 During the post-monsoon season (Octoberit was 10. 1. (Table 1. 20 per cent and 4 per cent.9 2009 8 23 13 75.

00 62.1 per cent higher than the previous year. The major changes estimated in cropping pattern during 2009-10 over 2008-09 were in rice [(-) 14. cotton (13.48 53. groundnut.27 8. jowar.24 27.31 Rabi (b) 2009-10 4.4 per cent from 225.51 2009 32.39 100.27 24. The overall sowings of rabi crops was satisfactory due to relatively more conducive weather conditions.60 69.70 17. respectively registering 8.19 18. sesamum and linseed Note: Kharif crops as on 23.Table 1.74 10.92 0.44 8.47 0.69 lakh quintals. pulses (5. area under rice.49 9.87 13.26 95.18 There are 15 State Seed Corporations and 2 National Level Corporations in the country.06 27.53 14.9 per cent growth over the previous year. While the crop coverage under rabi season was higher under wheat and gram.10.7: Area Sown under Major Crops (Million hectares) Crop Kharif (a) 2008 Rice Wheat Coarse Cereals Pulses Total Foodgrains Oilseeds* Cotton Sugarcane All crops 38.7 per cent) and oilseeds [(-) 4. crop coverage during 2009-10 shows a fall from 162. safflower.83 0.96 9. rapeseed and mustard and sunflower were lower than those in the previous year.70 52.00 20.26 157. 22 .6 per cent]. Seeds 1.17 When both kharif and rabi crop areas are taken together. Ministry of Agriculture.16 Rabi sowings began late in few regions due to delayed kharif harvesting.82 2009-10 37. Certified/quality seed distribution during 2008-09 at 190 lakh quintals was 6.09 lakh tonnes during 2008-09.48 9. breeder seed production and foundation seed production reached 1. During 2008-09.82 million hectares during 2008-09 to 157.19 The Seed village fertiliser consumption (nutrient terms) increased by 10. c.31 million hectares in the corresponding period of 2008-09. The area sown under all rabi crops is reported at 62.7 per cent and 17. Fertilizers 1. sunflower. Government of India 1.07 2008-09 4.0 lakh quintals and 9.63 4.67 28.49 4.59 27.82 0.00 20.2009 and Rabi crops as on 26.32 27.49 4.00 62.82 27. ii.54 Total (a+b) 2008-09 43.63 4.3 per cent].00 0.2010 Source: Department of Agriculture & Cooperation (National Crop Forecasting Centre).82 6.67 9.76 26.70 lakh tonnes during 2007-08 to 249.30 121.03.54 million hectares as compared to 62. the the Ministry scheme for of Agriculture ‘Development has and implemented Strengthening of Infrastructure Facilities for Production and Distribution of Quality Seeds’ since the year 2005-06. In order to develop and strengthen the existing infrastructure for production and distribution of certified/quality seeds to farmers.4 per cent).61 million hectares during 2009-10.24 27.59 6.54 23. Inputs use in agriculture i.14 63.07 9.62 116.61 *: Covers nine oilseeds including rapeseed & mustard.00 0. 1.39 162.

285 crore 23 iii. Availability of credit to farmers: For the year 2010-11. There have been several Central Sector schemes launched in recent years to create irrigation potential like Rainwater Harvesting Scheme for SC/ST farmers and . the Government of India initiated the Accelerated Irrigation Benefit Programme (AIBP) during the year 1996-97. Current pricing mechanism. 2009. the target has been raised to Rs.5:2. 1. Mobile banking in India: Recently. Jharkhand. As on March 2009. the average use has been 5.25. West Bengal and Eastern Uttar Pradesh). Financial Inclusion through grass-root co-operatives: In order to understand the operations of the cooperative societies and their potential to contribute to financial inclusion.21 For extending assistance for the incomplete irrigations schemes.783.400 crore for the Eastern region (Bihar. Artificial Groundwater Recharge through Dug wells. New fertiliser policy: With a view to promoting balanced fertilization through new fortified products and focus on extension services by the fertiliser industry. The Reserve Bank of India is examining the same. i.34. d. implemented in all States and Union Territories during 2004-05 to 2006-07.3. 268 projects have been covered under the AIBP scheme and 109 completed. has been proposed.000 crore from Rs. 2010-11 a.2 Policy Recommendations on Agriculture & Rural Development (i) Union Budget 2010-11: Highlights a.20 Total irrigation potential created under all types of irrigation structures has increased from 81.000 crore during 2009-10. NABARD and a few State Governments. Further. which affects adversely soil profile. Rs. 2010. leaving a gap of 15 per cent. projected grant requirement of AIBP is Rs. The subvention for timely repayment of crop loans has been raised from (ii) RBI’s Monetary Policy. unscientific use of chemical fertilizers and a bias against micronutrients have resulted in nutrient imbalance with excessive use of urea (Box 1.3. The policy is expected to increase agricultural productivity and consequently better returns for the farmers and reduce volatility in the demand for fertiliser subsidy in addition to containing the subsidy bill.300 crore for organizing 60. Rs.04 crore. For the year 2009-10. micro-nutrient use and crop productivity.24. To give momentum to the pace of financial inclusion. the cumulative Central Loan Assistance (CLA)/grant of an amount of Rs.1:1. an inter-ministerial group constituted by the Government of India has made important recommendations for financial inclusion through bank-led model using the infrastructure already set up by mobile service providers. c. the Government in 2007-08 had set up a Financial Inclusion Fund and a Financial Inclusion Technology Fund in NABARD.78 crore has been released under the scheme as on March 31. Chhatisgarh. one per cent during 2009-10 to two per cent during 2010-11 so that the effective rate of interest for such farmers will be five per cent per annum. i) Rs.77 million hectares by March 2007.000 ‘pulses and oilseed villages’ in rain-fed areas in the country.12. resulted in installation of 18. The new system will move towards direct transfer of subsidies to the farmers. b. it is proposed to constitute a Committee comprising representatives from Reserve Bank of India.. This is expected to benefit around 8807 hectare of land of SC/ST farmers.2). Irrigation 1.700 crore.100 crore for each of these funds has been proposed.10 million hectares in 1991-92 to 102. and (ii) Rs. As against the desirable proportion of 4:2:1 of NPK.75.Box 1. Orissa. Utilisation was to the extent of 85 per cent.e. The Rainwater Harvesting Scheme. Agricultural production and productivity: With a view to increasing agricultural production and productivity.016 water harvesting structures with a total subsidy utilization of Rs. b. Financial inclusion: To reach banking services to the un-banked areas. a Nutrient Based Subsidy Policy for the fertiliser sector has been approved by the government and will become effective from April 1.

919 crore (provisional) surpassing the target by 12.8 18.3.7 per cent and 9.9) (Box 1. Crop Loan (ST-Production Credit) II.963 crore.8 per cent over the five year period ending 2008-09.4 per cent of the total credit flow during 2009-10 (Table 1. Minor Irrigation ii. Sub sector-wise. #: Compound Annual Growth Rate.6 25. respectively sharing 74. However.1 2. for creation of an additional irrigation potential of 10.8: Agency-wise Ground level Credit Flow (Rs.5 (-)4. hi-tech agriculture witnessed the highest annual growth rate of 25.7 26. Co-operative banks and Regional Rural Banks disbursed Rs.8 (-)33.7 12.22 As against the target of Rs.3 15.2 17. 15. Others$ Total (I + II) ^ : Compound Annual Growth Rate * : Percentage change over previous year. Rs.0 per cent) in GLC flow during 2008-09 (Table 1. forestry/waste land development. the GLC flow for agriculture and allied activities registered a Compound Annual Growth Rate (CAGR) of 18. the growth rate in long term credit flow during 2008-09 at 24.1 per cent).3 10. bullock and bullock carts. bio-gas and credit flow through private sector commercial banks.50 lakh hectares.1 28. Credit 1. iv. Poultry Farming and Sheep/Goat/ Piggery $ : ‘Others’ include storage/market yards. # : Animal Husbandry includes Dairy Development.9 2008-09* 16. compared to an annual growth rate of 26.1 0.456 crore.7 61.74. RIDF. Plantation & Horticulture v.1 21.1 75. Hi-tech agriculture viii. Commercial banks. No.6 I.000 crore of credit flow to agriculture for 2009-10.2.34.Table 1.4 per cent over the five year period ending 2008-09. crore) Agency 2005-06 2006-07 2007-08 2008-09 2009-10 (@)Growth Rate (%) 2005-10# 2008-09* Co-operative Banks Regional Rural Banks Commercial Banks Others Total 39404 15223 125477 382 180486 42480 20435 166485 0 229400 48258 25312 181088 0 254658 45966 26765 228951 226 301908 57500 34456 274963 0 366919 8.8 12.4 18.7 17.5 per cent.6 (-)26.7 20.7 5.4 2.0 per cent during 2008-09.8 per cent was higher than the growth rate of 3. Farm Mechanisation iv.4 3.57.9: Sub-sector-wise Ground Level Credit Flow for Agriculture & Allied Activities (Rs.0 20. Animal Husbandry# vi.1 per cent) and Minor Irrigation (12. the banking system disbursed Rs. Within the banking system. The growth rate in short term credit flow fell to 16. Fisheries vii.4 18.0 24.3).7 21.66. Sector/Sub-Sector 2005-06 2006-07 2007-08 2008-09 Growth rate (%) 2005-09^ 105350 75136 8663 1749 9695 4481 7341 1019 9737 32451 180486 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 26.3 5.0 13.500 crore and Rs.3.25.1 per cent.5 @: Provisional. Source: NABARD *: Percentage change over previous year. Table 1.8). 24 . Term Loans (MT & LT Investment Credit) i. Land Development (13. followed by Animal Husbandry (15. 1.crore) Sr.9 per cent.9 per cent.6 2009-10* 25. Land Development iii.5 (-)6.23 During the period 2005-10.

92 14. Burdwan in West Bengal.19 11.39 208.52 11.9 per cent and sugarcane at 3.76 25.18 80.95 109.69 78.35 34. maize.95 31.50 79. When the exercise was conducted at the district level (Hardoi in Uttar Pradesh. ## Million bales of 180 kgs each Source: Agricultural Statistical Division.84 93.00 340.17 10.03 10.10 125.55 for wheat. Similar observations presented in Box 1.10 * Final estimate.79 69.46 million tonnes (final estimate) during the last year. When market density.e.88 348.85 25.13 14. masur.98 33.63 355. jute.00 43. Chitradurga in Karnataka and Nanded in Maharashtra). 1. and it was found out that one per cent increase in credit supply increased fertiliser consumption by 0.98 18. number of villages electrified.66 11. production of all crops. literacy rate and credit supply were regressed on crop yields.68 40.57 40.28 110. two-stage equations were used.20 2009-10** Estimate 89.10). cotton.Box 1.19 million tonnes as compared to 234.30 per cent and one per cent increase in fertiliser consumption increased crop yields in the range of 0.71 24. i.31 80.60 26.35 75.57 234.10 16.27 96. The elasticity coefficients of credit were 0.77 218.46 118.10: Production of Major Crops (Million tonnes) Year/Crops 2005-06 2006-07 2007-08 2008-09* Target Rice Wheat Coarse Cereals Pulses Foodgrains Kharif Rabi Oilseeds Cotton# Sugarcane Jute & Mesta## 91.29 22.14 per cent to 1.19 102. sunflower. similar relationships between credit supply and crop yields were observed.36 100.15 113. they play an important role Table 1.25 Although the total area covered by plantation crops is comparatively less. ** 3rd Advanced Estimate. Bengal gram..57 106.87 98.33 27. the country’s foodgrain production during 2009-10 has been pegged at 218.34 115.83 29. the reduction being larger at 17. Agricultural Production Foodgrains & Non-foodgrains be lower compared to the previous year. # Million bales of 170 kgs each.81 33.4 d. During the year.2 per cent in case of coarse cereals. Main crops considered for the analysis were paddy.28 285.28 for paddy and 0. i.83 274. Government of India. cotton and jute & mesta. is expected to ii. it was found that the role of credit in influencing crop yield was quite positive and significant.59 109.50 281. except wheat. Ministry of Agriculture.73 27. pulses. bajra.06 13. followed by rice at 9. Plantation Crops 1.20 217. rapeseed and mustard.03 14.3 Impact of Credit on Crop Yields A recent study on ‘Economic Analysis of Yield Gaps in Principal Crops in Various Regions in India’ supported by NABARD through its R & D Fund has evaluated the impact of credit on fertiliser consumption and that of fertiliser use on crop yields using State-wise data averaged for the years 2004-05 to 2006-07.13 per cent.14 116.00 11.41 22.6 per cent (Table 1.78 120.24 According to the 3rd Advance Estimates. wheat. (i) credit supply and fertiliser consumption and (ii) fertiliser consumption and crop yield.50 239.76 230.76 14.21 99.72 22. For studying relationship between credit and crop yields. onion and potato. Economic Survey 2010-11 25 .

in to prime mover in 1. the estimated export of natural rubber was 49. Under the scheme.92 lakh hectares was brought under horticulture crops and the maximum coverage was under perennial fruits particularly mango.38 crore compared to the previous year..11: Production.74 2.61 8.Table 1. 7.8 million tonnes during 2007-08.15 2. Consumption and Exports of Major Plantation Crops (lakh tonnes) Year Prodn.85 1.57 7. Coffee Board. India continued to record the highest productivity in the world with an average yield of 1. 7. 2.84 lakh tonnes in 2008-09. 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10^ 9. the overall growth during 2008-09 comprised of growth of 1. Despite not having regions geographically best suited to growing natural rubber.45 crore.04 NA Prodn. coffee is cultivated in an area of around 3.3 per cent in fishing as compared to a growth of 5.64 per kg as against 1.01 8.03 8.9 per cent in forestry iii. diversification agriculture agriculture.49 9.85 0. 2. 0.926 tonnes against an import of 77.62 2. Horticulture Crops horticulture significantly sector.1 per cent in agriculture.94 lakh hectares. followed by forestry and logging and fishing.95 lakh tones of Robusta.49 2.123. Government of India launched a Centrally Sponsored Scheme “National Horticulture Mission (NHM)” with a view to doubling horticulture 26 .73 8.71 7. The total import of tea into India during 2008-09 was valued at Rs. Agriculture is the largest component of the GDP originating in agriculture and allied activities. Further. i. the NHM is in operation in 367 districts spread over 18 States and 3 Union Territories. sector.867 kg/ha. The estimated coffee production for the year 2009-10 is 2.72 6. 1.95 Exports 0. At present.25 8.62 2.49 ^: Provisional. Tea Board and Rubber Board in view of their export potential and employment generation. During 2009-10.19 2. respectively during 2008-09 (Table 1.90 lakh tonnes.74 0. 7.13 provides the percentage distribution of GDP originating from sub-activities of agriculture and allied sector.e. In 2009-10. which was higher by Rs. During 2005-06. forestry and logging and fishing.32 Rubber Cons.55 8. production by 2011-12.7 million hectares and 220.18 1.2 million hectares during 2007-08.97 Tea Cons.60 0.20 8.09 9.50 8. e.06 1.5 per cent from 20.0 per cent in fishing. guava and sapota.6 per cent from 212.75 0.12 2.86 8.28 Agriculture and allied activities are further segregated into a few segments such as agriculture. 0.97 2. Tea production in the country during 2009-10 has been estimated at 8.95 lakh tonnes of Arabica and 1. NA: Not Available Source: Ministry of Commerce and Industry. At disaggregated level.0 per cent in agriculture.53 8.64 6. while the area under various horticulture crops increased by 2.35 7.5 million tonnes.12). Table 1.616 tonnes (Table 1. Agriculture and Allied Sector 1. GoI.74 crore with a unit price realization of Rs.53 Prodn.27 The promoting contributes and logging and 6.84 1.02 NA Exports 2. a total area of 4.2.73 lakh tonnes achieved in 2008-09.8 0.73 9.26 In India. aonla.73.274.97 lakh tonnes as against 9.46 0.11).57 0. citrus.88 2.90 Coffee Cons. 2.181.2 per cent in forestry and logging and 6. the export of tea from India during 2009-10 is estimated at 1.53 lakh tonnes valued at Rs.90 0.47 0.45 9.75 2. Area and production under horticulture crops reached a level of 20. production increased by 3.94 NA Exports 2.

Vision Document 2015 by ministry of Food Processing Industries has set the challenging target of trebling the size of processed food sector by 2015 through appropriate enabling policies.7 Fruits 49. ii. the total fish production in the country Table 1. they increased by 26.8.3 5.1 16.4 59. Livestock and Poultry 1.2 20.9 0.8 18.9 18.8 6.9 0.4 Production (Million tonnes) Vegetables 101.3 14.29 During 2008-09.4 per cent respectively during 2008-09 over the preceding year.9 13.2 2. GoI 27 .8 per cent.1 Flower 0.8 212.2 110.7 1.8 per cent of GDP and 5.9 million tonnes of marine fish and 4. The per capita availability of milk increased from 252 grams per day to 258 grams per day due to increase in milk production in the country by 3. the fishery sector contributed 0.4 101.1 115 129.7 0.6 65.2 0.1 0.2 per cent of GDP and 28.8 8.1 5.9 Total Horticulture 165.7 million tonnes of inland fish).5 13.5 167 181.30 Fishing. respectively.31 Food processing is of paramount importance to the country as it has the potential to transform subsistence agriculture consumption to remunerative and and environmentally sustainable occupation.7 6.1 5. Further. due to changing pattern consumer preferences followed by growth of organized agri-food retailing. As per the 17th Livestock Census. Export earning from the sector was also on the increase with the value of marine products export touching Rs.6 million tonnes (2. increased by 7.2 Total Horticulture 20.5 per cent during 2008-09 over 2007-08.6 5.7 0.4 20. During 2008-09.8 191.8 220.8 18.0 per cent and 43.32 Agriculture remarkable recovery during 2009-10 after a steady decline over the previous two years.6 17.7 g.7 19.1 0.7 7.2 0. during 2009-10 (Up to December 2009) over the year 2008-09. 2003. *: 3rd advance estimates Source: Agricultural Statistics at a glance.608 crore during 2008-09.8 50.0 44.0 per cent value of output from agriculture and allied activities. Fisheries 1. it is considered as a promising sector.0 Flower 0.8 1. f.8 0.6 69. the livestock and poultry population in the country were 485 million and 489 million respectively. Commodity Futures commodity futures staged a 1.1 7.5 ^: Provisional.2 17.4 15.0 per cent and reached 7.8 0. aquaculture and related activities are reported to have provided livelihood to over 14 million persons during 2007-08.5 48.Table 1. Agro and Food Processing Sector 1.1 2.0 1. The value of agricultural Central Statistical Organisation. the livestock sector contributed 3.3 133. While the volume and value of trade in commodity futures market decreased by 26.6 0.7 38. various issues i.13: Gross Domestic Product of Agriculture and Allied activities by sub-activities (Percentage distribution) Year 2004-05 2005-06 2006-07 2007-08 2008-09 Agriactivities Forestry & Fishing Agriculture and Logging Allied activities 15.3 per cent value of output from agriculture and allied activities.9 15.1 0.4 per cent and 33.1 Area (Million hectares) Vegetables 6.6 7.12: Area and Production of major horticulture crops (Area in million hectares and Production in million tonnes) Year Fruits 2003-04 2004-05 2005-06 2006-07 2007-08^ 2008-09* 5. During the period between 2007-08 and 2008-09.9 55.

597 crore (at 2004-05 prices) in 2008-09.77 1.34.25 1.9 2. # : Since inception of the Scheme. followed by 37.59 5.16 4.75 39. commodity futures market decreased from 23. and Karnataka.41 1.7) per cent) by co-operative banks and 13. 39. Orissa and Rajasthan (6 per cent each) (Box 1.982 crore.8 15.78.4 Share in total investment (Per cent) Investment in agriculture to GDP in agriculture 14. But this share edged up to 16. NABARD implemented the Scheme as the nodal agency for co-operative banks and RRB.38.51 8.64 * : Data for commercial banks available up to 30 September 2009 and cooperative banks and regional rural banks up to 28 February 2010.41 1.80 million cards (43. Year-wise Kisan Credit Cards Issued (million) Year Co-operative Banks 2.4 17. Hence.83 2.2 per cent during 2007-08 to 12. Agricultural Debt Waiver and Debt Relief Scheme 1.4 per cent) by regional rural banks (Table 1. Maharashtra (9 per cent). August 1998 . Gross Capital Formation (GCF) in agriculture and allied sectors increased from Rs.6 2.76 million cards (41.3 Source: Economic Survey 2009-10 commodities as a proportion to total trade in accounted for 18 percent of the total cards issued followed by Andhra Pradesh (17 per cent).61 37.5).6 75. In view of the recent drought in some states and the severe floods in some other parts of the country. Madhya Pradesh.3 Investment in agriculture to total GDP 2.80 Total i.34 During 2009-10. Kisan Credit Card Scheme 1.81 4.33 Capital formation is very crucial in determining the production capacity. revealed that Uttar Pradesh 28 2005-06 2006-07 2007-08 2008-09 2009-10* Cumulative# 8.14).1 15.97 million KCC were issued by banks with sanctioned credit limit of Rs. Of the total 90.5 78.crore) Year 2004-05 2005-06 2006-07 2007-08 2008-09 Public 16183 19909 22978 23039 24452 Private 62665 73211 71422 86967 114145 Total 78848 93120 94400 110006 138597 Private sector to Total 79. especially small and marginal farmers (also see Box 1. 1.30 2. the period of Table 1.01 8.08 million cards (14. there is a need to step up capital formation in agriculture to be able to reach the targeted growth of 4 per cent.3 per cent during 2009-10 (Up to December 2009)..2 21. i.47 8.60 2.64 million credit cards issued as at endFebruary 2010.97 90.15).1 82.09 1.7 2.61 13.0 per cent during 2008-09.15: Agency-wise. h.8 3.61 5.Table 1.08 4.35 State-wise analysis of KCC issued as at end-February 2010.34 1. 2008 to address the indebtedness of farmers and difficulties of the farming community. Capital Formation j.3 per cent in 2008-09 (Table 1.7 per cent in 2004-05 and improved to 3.e. 1. Tamil Nadu (7 per cent).14: Gross Capital Formation in Agriculture (At 2004-05 prices) Investment in agriculture and allied sectors (Rs.1. 5.7 79.848 crore in 2004-05 to Rs. The GCF in agriculture and allied activities as a proportion of total GDP stood at 2.4).9 per cent) were issued by commercial banks.36 The Union Budget 2008-09 had announced Agricultural Debt Waiver and Debt Relief (ADWDR) Scheme.76 Regional Commercial Rural Banks Banks 1.

2009 to June 30.109 lakh hectares. During the period from rabi 1999-2000 to rabi 2008-09.291 crore.4 Yield Effect of Kisan Credit Card (KCC) An in-house study on the Impact Evaluation of KCC Scheme has been conducted. respectively. the present model is too simple to answer the influence of credit on crop yield. 2.30 + 4. Yi = 20. he should have at least 10 healthy nut-bearing palms in the age group of 4 to 60 years in contiguous area/plots. This scheme is open to all farmers irrespective of their size of holding and is being implemented by 25 States and two Union Territories. 21. have been covered.681 crore.Box 1. the National Agricultural Insurance Scheme (NAIS) has been in operation since rabi 1999-2000. SCARDB and RRB stood at Rs.5 per cent were the major beneficiaries.59 lakh farmer borrowers of co-operative banks and RRBs are estimated to have benefited under the Scheme. For the study.485 crore against the claims of Rs. possession or other wise of KCC had been regressed on crop yield and the result corresponding to All India position as depicted below suggests that the mean yield level of the KCC holders and non-KCC holders is significantly different: repayment of the loan amount by farmers under debt relief was extended from December 31. It was observed that paddy was the major crop cultivated by the sample KCC holders. Agricultural Insurance 1. the mean yield difference is found significant in all regions.513 crore and Rs.77 lakh farmers have been covered under the pilot scheme and claims to the tune of about Rs. Orissa and Tamil Nadu.37 With a view to providing financial support to farmers in the event of crop failure. However. The increase in the crop yield was partly attributed to the credit access through KCC.76 —2 To test the significance between estimated mean yield of KCC holders and non-KCC holders.444 crore.347 lakh farmers. over an area of 29 .48.3 per cent over the non-KCC holders at 14 to 26 quintals. regional rural banks and commercial banks in 14 States has been adopted.388 crore have been paid against a premium of about Rs. Higher doses of application of various inputs have resulted in higher yield by the KCC holders as compared to the non-KCC holders. NABARD. The average productivity per hectare of paddy of the KCC holders was compared with non-KCC holders and it was found that the per hectare paddy yield of the KCC holders at 18 to 34 quintals was higher by 13. Karnataka. pests and diseases. a multi-stage stratified sampling design covering 1. of which small and marginal farmers. disbursed Rs. Between kharif 2007 and kharif 2009. About 192.250 crore..15. with an insured sum of Rs.38 The pilot Weather Based Crop Insurance Scheme (WBCIS) is under implementation since kharif 2007 to provide insurance to farmers against adverse weather conditions affecting crop production. When the exercise has been performed region-wise. In order to become eligible for the benefit under the scheme.3. 1. as a result of natural calamities. the Coconut Palm Insurance Scheme (CPIS) was launched on a pilot basis in selected areas of seven States.1.e. 2010. Scheme 2008. Maharashtra. Further. 1. Andhra Pradesh. a farmer should have been enrolled by the State Agriculture/Horticulture Department or Coconut Development Board or any other such agency under a rehabilitation/development/expansion scheme.876 KCC holders from 178 bank branches from cooperative banks.25.6. under the ADWDR. constituting 83. i. During 2009-10. Kerala. Goa.25.858 crore. especially in view of the cross-sectional data used in the analysis.44) R = 0. except Western region and Central region.69 Di (t -value) (7. Rs. The share of SCB. k.

50 million tonnes during 2008-09.2. For the year 2010-11 also. As per available statistics (4thCensus of MSME Sector. The major advantage of the sector is its employment potential at low capital cost. 1.40 Giving due consideration for margins to farmers on account of risk as well as surplus over cost of production. 8 million tonnes and 2 million tonnes.30 per cent over the level of 35. 2009. 2010 (kharif marketing season 2009-10 for rice and rabi marketing season 2009-10 for wheat) represents a decline of 1. The recent announcement of the MSP for kharif crops of 2010 season has hiked the MSP for various pulses in the range of 15 to 30 per cent. Small & Medium Enterprises The Micro.42 Food security has always been an area concern. moong and wheat during 2009-10 over the year 2008-09 were 11. The off-take of foodgrains (rice and wheat) under Targeted Public Distribution System (TPDS) and other 1.66 per cent compared to the corresponding level last year.l. While the MSP for arhar has been hiked by 30 per cent from Rs.04 million tonnes (rice 25. the Mission is being implemented in 312 select districts of 17 States in the country. The stock of foodgrains (rice and wheat) held by Food Corporation of India (FCI) as on April 1. Procurement and Stock of Foodgrains schemes at 48. 30 .8 per cent.43 Micro.000 per quintal. respectively by the end of the Eleventh Plan. 2010 at 42. Presently.03 million tonnes as on April 1.86 million tonnes during 2009-10 was 23.5 per cent and 1. create employment opportunities and strengthen the farm-level economy to restore confidence of farmers. 1. the MSME sector has consistently registered higher growth rate compared to the overall industrial sector.39 The increases in the Minimum Support Price (MSP) for common paddy. MSME sector accounts for about 45 per cent of the manufacturing output and around 40 per cent of the total exports of the country. Attaining sustainable food security become more complex as economies get globalised and climate change threatens to make agriculture more uneven. the Government has hiked the FRP of sugarcane by 7 per cent at Rs.129. m. wheat and pulses by 10 million tonnes. 2006-07). The main objectives of the NFSM are to increase production through area expansion and productivity enhancement. the MSPs have been maintained at the previous year’s levels and for other commodities they have been raised in the range of 2-9 per cent. the Government of India has fixed the Fair and Remunerative Price (FRP) of sugarcane at Rs.1 million enterprises.84 million tonnes was higher by 22.51 million tonnes and wheat 0. For rice and cotton. Support Prices. The pathway to food security is an evergreen revolution leading to the improvement of productivity of crops in perpetuity without associated ecological harm. which is over 51 per cent higher than the Statutory Minimum Price (SMP) for the year 2008-09.139.300 to Rs. spread over 26. 9. of value.70 per cent higher than that at 39. this sector employed an estimated 59. 1. The MSME sector contributes to about 8 per cent of country’s GDP It is estimated that in terms . With a view to enhancing the production of rice. 1.53 million tonnes) as on April 1.8 per cent respectively.12 per quintal.41 The overall procurement of rice and wheat at 26. Skill development has been accorded high priority in this sector. the MSPs for moong and urad have been raised by 15 per cent each. including the cost of transportation. the centrally sponsored National Food Security Mission (NFSM) has been launched from the rabi 2007-08 season.84 per quintal during 2009-10. In recent years.7 million persons. Small and Medium Enterprises (MSMEs) play a pivotal role in the overall industrial economy of the country.3.

The specific Terms of Reference (ToR) are: i. share croppers and oral lessees within the institutional credit fold to meet their credit requirements in order to reduce their dependence on informal sources. ii. NABARD vide its order dated 06 October 2009 to look into the issue of large number of farmers.Box 1. the Government of India (Ministry of Agriculture) set up a Task Force under the Chairmanship of Shri. To suggest measures for providing relief to farmers indebted to private money lenders iv. Umesh Chandra Sarangi. To examine and suggest measures for improving effectiveness of Kisan Credit Card (KCC) scheme including revised operational guidelines for distribution and sanction of KCC credit limits. and iii. 31 . tenant farmers. Chairman. not being covered under the loan waiver scheme. Subsequently. To suggest measures for covering all categories of farmers more particularly small and marginal farmers.5 Task Force to look into Issues of Private Moneylenders The Union Finance Minister in his Budget Speech for 2009-10 (paragraph 29) had highlighted the growing influence of moneylenders and had proposed setting up of a Task Force. The Task Force is to submit its report by 30 June 2010 v. Review of existing policy measures for addressing the issue of indebtedness arising out of loans from private money lenders and status of its implementation. Overview of the existing legislation in the states for regulating loans from private money lenders in the country. who had taken loans from private money lenders.

89. respectively. is expected to be covered. there was sufficient water for irrigation. Box 2.41 crore and Rs. taking the cumulative number of projects to 513 in districts in 14 states. 2.2. it reports on various developmental programmes of the Government of India and State Governments with which the Bank is associated.1. Rs. 2. was augmented during the year 2009-10. 2.3 Under the Prime Minister’s Relief package for 31 distressed districts in the four States of Andhra Pradesh. During the year 2009-10. taking the cumulative area and financial commitment to 8. during the year 2009-10 and the major findings are given in Box 2. taking the total to Rs. With these sanctions under ‘distress’ and ‘non distress’ districts. The aim of developing such watersheds is to significantly mitigate the distress of farmers in the area. During the year. Jamuai. 83. followed by black gram (32%) and green gram (24%). respectively. Bhabua. better water availability and soil moisture.30 crore. Kerala and Maharashtra (for developing 15. the total commitment as on 31 March 2010 was at Rs. efforts made in capacity building of its clientele.13 lakh ha.000 ha. and Rs.000 ha. taking the number of such projects to 210.1 Major findings of Mid-Course Evaluation of WDF Watershed Projects by CRIDA • Impact of afforestation on hillocks is evidenced by visible vegetation. of watershed annually over two years in each of these districts).14. aims to develop 80. • • Gross cropped area increased. programme implemented under the Special Plan for Bihar component of Rashtriya Sam Vikas Yojana (RSVY).196. due to control of soil erosion. Munger. were taken up for implementation during the year. with the result that more areas have been brought under mango orchards. In addition. as on 31 March 2010. Karnataka. as fallow land/waste land was brought under cultivation.2 Watershed Development The Watershed Development Fund (WDF).102 crore. Banka.493 crore.07 crore. The projects continued to be implemented in Capacity Building Phase (CBP) and Full Implementation Phase (FIP). of wasteland in Aurangabad. 59 watershed projects were sanctioned. an area 5.197. Gaya. 41 projects graduated to FIP. This Chapter details the various initiatives and programmes of the Bank. During 2009-10. The findings of a quick study conducted by the Bank in distressed districts of Maharashtra is provided in Box 2.II Development Initiatives NABARD continued to suppor t various innovative initiatives in addition to the Bank’s conventional on-going activities.958 crore.1. With a total commitment (loan and grant) of Rs.4 The par ticipator y watershed development established with Rs. A Mid Course Evaluation of Watershed Projects under WDF was conducted by the Central Research Institute for Dryland Agriculture (CRIDA). Significant gains in crop yields were observed due to better moisture regime in kharif crops like sorghum (33%).200 crore during 1999-2000. as reported by farmers. Nawada and Watershed Project 32 .77 crore and Rs.79 crore were disbursed as grants and loans taking the cumulative disbursements to Rs. research and development activities funded during the year. • Even during rabi season. The projects are entirely grant based in distressed districts and a combination of grant and loan is provided for nondistressed districts. Farm Sector A.1.71 lakh ha.000 ha.

6 Capacity Building for Adoption of Technology The ‘Scheme for Capacity Building for Adoption started in 2007. It has also helped in improving productivity and farm income by imparting better soil and water conservation techniques. no incidence of suicide due to agricultural indebtedness was reported. During the year. 2. Areas covered pertained to medicinal plants.60 crore. a total of 79 projects in an area of 83. clean drinking water. It is also supported under FTTF. Under the programme. • Distress migration was stopped in most of the villages and employment opportunities (demand for labour ) increased in project villages • Yield of soyabean.37 crore was disbursed and the cumulative disbursement.5 crore in one year after the commencement of watershed project. • Water table.593 ha have been sanctioned. good 33 of Technology’ (CAT) aims at capacity building through exposure visits and training to farmers for adopting new/ innovative methods of farming. where work under National Holistic Watershed Development Programme (NHWDP) is being implemented. Financial support for this purpose is extended from Farmers’ Technology Transfer Fund (FTTF). A sum of Rs. The area under horticulture had also increased. Women SHGs had been formed and started small units of enterprises like flour mills. which was fallow before commencement of project work. Majority of the farmers were using compost and the use of pesticides was decreasing. During the year. in all project villages. 261 exposure visits for 6. of which 30 projects are at CBP stage and 49 at FIP stage. gram and jowar had gone up by 20 to 30 per cent. • • • • • • Green fodder was available in plenty. small dairy units.8. reported that the people from nearby villages have expressed interest for undertaking similar work by requesting NABARD to extend such projects in their villages. 50 ha. vermicompost. tissue culture. Number of milch animals in many project villages had gone up.516 farmers were arranged in collaboration with select research institutes.500 additional villages. etc. the coverage of the programme is being extended to 1. the programme was implemented in 953 villages of 437 districts across 25 States. B. The VDP has mobilised the villagers and secured them f i n a n c i a l i n c l u s i o n . b e t t e r r o a d connectivity. back yard poultry.99 crore. • VWC members of Kingaonjattu cluster in Lonar Taluka of Buldana District informed that agricultural income of the village had gone up by Rs. • The land. Main findings are given below: • Of the 141 project villages covered in the study. In Phase II. poultry . Rohtas districts with an allocation of Rs. 2. resulting in increased milk production.5 Village Development Programme The Village Development Programme (VDP). better agricultural practices and knowledge of improved tools. goatery.2 Findings of a Quick Study in Distressed Districts A quick study was conducted by the bank in November 2009 in all the six distressed districts of Maharashtra. Members of Kegaon Pahaphal VWC in Pandharkawada Taluka of Yeotmal District. as on 31 March 2010. of additional land was brought under cultivation in each village. was brought under cultivation. sanitation and cleaner environment. mandap decorations. aimed at developing one village in each DDM district and five villages in each of the PPID blocks in an integrated and holistic manner. stood at Rs. C. good infrastructure in the form of school buildings and health centers. had gone up by 2 to 3 metres and availability of drinking water was ensured. cotton. On an average. As on 31 March 2010. 34 projects graduated to FIP stage.Box 2. Krishi Vigyan Kendras and State Agricultural University.13. Farmers having their own wells were growing vegetables in Rabi and summer seasons.

(iii) development of prototype machinery for filling feed pits for ver mi-compost production. which are traditional tribal occupations and capable of income generation. Projects focusing on minor forest produce like tasar silk. kinnow. Jharkhand. For upscaling the programme. financial assistance of Rs.7 Tribal Development The Tribal Development Fund (TDF) was created in 2004 with Rs.224.52 crore during the year.155. jackfruit. During the year.1. were sanctioned during the year. 17 proposals in 11 states were sanctioned with financial assistance of Rs.53. During 2009-10. projects in collaboration with Commodity Boards. The objective is to promote innovative and viable concepts/ Innovative methods of farming under CAT projects in agriculture and allied activities. extension support. balance outstanding in the Fund was Rs. As on 31 March 2010. E.37 lakh as grant and Rs.12. as also with corporate houses were taken up. development of marketable prototypes.135. gums and bee keeping. benefiting 63. etc. (vii) cost-effective shrimp farming.9 Farmers’ Technology Transfer Fund The ‘Farmers’ Technology Transfer Fund’ (FTTF) set up and operationalised from 1 April 2008. Karnataka. The cumulative disbursement was Rs. The projects provide sustainable livelihood for tribal families through orchard based farming along with social welfare measures to improve their living standards. of which 25 projects with financial assistance of Rs. drip irrigation. (iv) rain water harvesting structures and treadle pump for micro irrigation. Some of the activities supported were: (i) pilot plant for extraction of zero calorie white powder sweetener from stevia. Orissa and Uttar Pradesh.20 lakh as soft loan assistance). Meghalaya. marketing. with a corpus of Rs. patenting.150.25 crore was enhanced to Rs. support was extended to cover new crops like pineapple.50 crore from 1 April 2009.330 families in 191 projects across 22 states and two UTs.19 crore (Rs. from 1 April 2009. The Fund is to be used for promoting 34 . farming.37 lakh (Rs. and one each in Gujarat.8 Farm Innovation and Promotion Fund The Farm Innovation and Promotion Fund (FIPF) was set up in 2005. mandarins.5 crore. (ii) study and documentation of successful commercial dairy units. (vi) demonstrating hand held device. Of the completed projects. clove.62 crore covering 56. New Delhi and West Bengal. ornamental fish and aquarium maintenance. to intensify monitoring.104 lakh have been completed. with an initial corpus of Rs. Apart from supporting projects of traditional wadi fruit crops such as mango. viz. etc. 2. 78 projects were sanctioned financial support of Rs. Sikkim and Tamil Nadu and Union Territory of Andaman & Nicobar Islands. etc. GIS-GPS-based monitoring systems were introduced on a pilot basis in Madhya Pradesh. lac.. two each in Chhattisgarh.113 tribal families in various states. technology. Kerala. 2.amounted to Rs. During the year. D.09 crore as grant and Rs.107 crore. 2. five were in Maharashtra. The corpus under FIPF has since been enhanced to Rs. sericulture. The cumulative sanction F. (v) promoting System of Wheat intensification. were newly covered. off-season hybrid vegetable cultivation.50 crore. Coconut Development Board and Central Silk Board. Cumulatively.543.10 crore as loan) was sanctioned for 79 projects. three each in Tamil Nadu and Uttarakhand.50 crore to support integrated tribal development projects with wadi (a small orchard) as the core component.80 crore after disbursement of Rs.618 lakh. and (viii) increasing productivity of sugarcane through trench planting.236. cashew and aonla. mobile TV for online technology transfer (Tata Elxsi).

82%) regions.transfer of technology for enhancing production and productivity in agriculture and allied activities. touched Rs.12 NABARD continued to implement /coordinate the undermentioned area specific projects of the Government of India (GoI): 2.1.276) and other agencies (347). NGOs promoted maximum number of clubs (8. Over the years. Farmers’ Club Programme 2. (3) establishment of Farmers’ Science Museum. commercial banks (2. proliferating to 600-900 villages at the national level.10 A “Pilot project for augmenting productivity of lead crops/activities through adoption of sustainable agricultural practices” was launched during the year. (9) improvement of sericulture productivity and profitability through technological inter vention.939). (8) strengthening of Farmers’ Associations by for mation of producer groups. as on 31 March 2010. (2) nutrient management in rice. thus benefiting farmers at large. 2. (6) Promotion of indigenous honey bee deploying fixed bee hives with moveable frames. The project is to be implemented in 4-6 clusters of 5 villages each. Western (13. This was extended by provision of prepaid vouchers of Reuters Market Light (RML) to Farmers’ Clubs (FCs).488 lakh. Agency-wise. followed by the Southern (24. Eastern (18. Federations of Farmers’ Clubs. Some of the major proposals sanctioned were: (1) promotion of organic cotton cultivation.521). extension services. An instance of support extended under FTTF.04.590 clubs were launched taking the total number of clubs to 54. Cumulative disbursement. (10) livelihood support through vegetable cultivation and dehydration of vegetables. (5) promotion of transfer of technology in seed production and certification under Seed Village Programme.81%). 151 diverse and innovative proposals in 22 states for transfer of technologies were sanctioned a grant assistance of Rs.805 covering 1. I. technology and markets. Maharashtra and Rajasthan. collective purchasing and distribution of inputs.85%). Producer Groups/ Companies. and (12) scientific integrated pig-cum-fish farming. It is aimed at augmenting income of the farmers through enhanced production and productivity of lead crops/ activities so as to improve living standards of the rural farming community. Cattle Development Projects 35 . Pune in 13 districts of Bihar and 17 districts of Uttar i. crops and weather to farmers in the states of Karnataka. Pilot Project for augmenting productivity of lead crops/activities Government Projects 2. The region-wise distribution of clubs indicate that the Central region has the major share (29. the scope has been enlarged to facilitate transfer of technology.47%). Telecasting documentary on Doordarshan and distributing literature/newsletters & VCDs to the Farmers’ Clubs helped in technology transfer. capacity building of members to act as Business Facilitators (BFs)/Business Correspondents (BCs) of banks. co-operative banks (2. During the year. Joint Liability Groups (JLGs). through SMS facility of mobile phones.02 per cent.13 The projects have been implemented by BAIF. followed by RRBs (2. aggregation and marketing of produce. (11) farm productivity improvement through comprehensive technology transfer. propagation and popularisation of seed village concept. (7) project on management of fruit flies in mango and cucurbits using male annihilation technology and bait application technique. undertaking community works.11 The Vikas Volunteer Vahini launched by NABARD in 1982 was changed to “Farmers’ Club” (FC) programme in 2005. The FC programme aims to organise farmers to facilitate access to credit. During the year. G. 16. during the year. training and capacity building initiatives. leadership development and converting to business entities ultimately. formation of Self-Help Groups (SHGs).03%) and Northern (10. H.460 lakh.507). production and distribution of eco-friendly inputs. (4) promotion of sustainable organic crop farming through crop demonstration.648 villages in 587 districts. The volunteers of FCs have shared the garnered information with other farmers in a village. was an ICT initiative for providing information on market prices. while NER accounts for only 3.

projects utilising by-products. pollution control and value addition.021 rural youth from BPL families trained. The cumulative sanctions. GoI. Rs. 82. while in Rae Bareli.16 Three new schemes. the number of youth were 1. Rs. the financial achievements were 65. iv. stood at Rs. an amount of Rs.368 dairy units and Rs. Rs. as on 31 March 2010.19. Sultanpur. The emphasis will be on hygiene. Meghalaya and Uttar Pradesh.Pradesh since 2004-05.61 crore for 291 poultry units. The Fund has since been bifurcated into Dairy and Poultry Funds with separate allocations.90. respectively.2 per cent and 70.79% of the targets. however.785 pregnancies confirmed (under the Artificial Insemination component) in UP and Bihar.. as on 31 March 2010.9. to promote rearing and breeding on commercial basis. were launched in 2009-10. 16 and 13 District Dair y Far mers’ Associations have been formed. Under the LABS project in Slaughter Houses.04 crore for 76 poultry units. respectively. NABARD is the co-ordinating agency and facilitator for channelling funds.3. 2.12 crore and Rs.99 crore was received from the Ministry of Agriculture.2. Interest-free loans from NABARD will be available through 36 . 2. wherein creditlinked back-ended subsidy up to a maximum of Rs. Rs. (ii) Integrated Development of Small Ruminants and Rabbits.415 & 91. viz.16 crore for Poultry Venture Capital Fund.147 and 780. Special Project on Livelihood Based Development 2. cold storage and cold chains and certification of quality.15 Venture Capital Fund. out of 2. As on 31 March 2010. introduced in 2005-06.14 The Livelihood . for Dairy Venture Capital Fund and Rs.4 per cent as on 31 March 2010. ensuring its utilisation. During 2009-10. Dairy and Poultry Venture Capital Fund 2.90 crore for Rae Bareli. The duration of both the projects has been extended from Februar y 2009 to 30 June 2010 by GoI without any additional financial assistance.39 crore. The actual implementation. was continued in 2009-10. Rural ii. The project aims to cover 11.16 crore was sanctioned for 4.50.86 crore and Rs. respectively. While 100 Cattle Development Centres have been established in each state. Reddy Foundation (DRF) are the implementing agencies.91 crore for 15.10. viz.192 families registered (target : 80.Based Development special project sanctioned under SGSY by GoI is under implementation in Sultanpur and Rae Bareli districts of Uttar Pradesh since 2006-07.13. respectively.1.8. as on 31 March 2010. respectively. project supervision and monitoring. 1.000 families) and 2.09 crore. Integrated Development of Small Ruminants and Rabbits and Poultry Estates and Mother Units 2. will commence from 2010-11. taking the respective cumulative disbursements to Rs. During the year. Andhra Pradesh. taking the cumulative disbursements to Rs.48. respectively. and (iii) Scheme for Poultry Estates and Mother Units for Rural Backyard Poultry.17 The Scheme for Rural Slaughter Houses was to be implemented on a pilot basis in three states.61 crore allocated for each project.146. iii.7.14. While the physical achievements under MAAPA for Sultanpur and Rae Bareli districts were 86.18 The Scheme for Integrated Development of Small Ruminants and Rabbits is to improve the breed quality. (i) Establishment of Rural Slaughter Houses.500 BPL (Below Poverty Line) families under Multiactivity Approach for Poverty Alleviation (MAAPA) and 7.350 youth were employed.64 crore were released for Uttar Pradesh and Bihar. Out of Rs.682 and 1.500 financially very needy youth under Demand Driven Skill Development through Livelihood Advancement Business School (LABS) in each district at a project cost of Rs.10.57 crore and Rs.10.3. while BAIF and Dr.719 dairy units and Rs.12 crore were released for Sultanpur and Rae Bareli districts.97 crore for Sultanpur and Rs. NABARD is the project holder.14.132.69% and 82..99 crore and Rs. During 2009-10.89 crore each has been released by GoI till 31 March 2010.2 crore will be available for establishment/modernisation of rural slaughter-houses.

1). This component intends to promote rearing of low-input breeds which will survive in rural areas.72 lakh has been extended.300 farmers through water resource development. spinach. Two pilot projects are proposed under the scheme and preference will be given to states. 2.89 crore is under implementation through BAIF in Valsad and Dangs districts since 1994-95.848 in 258 villages. the recovery of which has been 100 per cent. wherein all common infrastructure facilities. hill brooms. Under Phase II. ridge gourd. A credit programme called ‘Vikas Arth’ is being implemented in the project area wherein credit of Rs.42. The 488 SHGs formed have taken up income generation activities such as nursery raising. radish. health and sanitation. processed 410 MT of cashew during the year. practising improved methods of irrigation such as drip.38.62. tailoring.19 The Scheme for Development of Poultry Estates aims at establishing poultry estates on the lines of industrial estates.732 acres of land belonging to these families and benefited 9. covering a wadi area of 12. The programme has also reduced distress migration.5 acre of wadi established and 253 wadi tukadis (group of 8-10 wadi holders) formed.the financing banks for setting up units for rearing/ breeding of sheep and goat and rearing of rabbits.Adivasi Development Programme in Maharashtra. Eleven tribal co-operatives which facilitate collection and processing of cashew.5 acres. aims to support 13. changed cropping pattern in favour of vegetables and pulses.41. The programme. training. The units will be eligible for interestfree loan of 50% of TFO. etc. About 23.22 Under the KfW-NABARD-IX. fenugreek. Five village-level cashew processing units have been set up. Externally – Aided Projects 2. taking up non-farm activities such as. tomato. etc. generated regular income and inculcated habit of savings through SHGs.864 participant families have taken up vegetable cultivation. along with arranging for inputs and marketing of the animals. to be routed through NABARD. as on 31 March 2010. J. Nasik. the successful wadi model of Gujarat is replicated in Nasik and Thane districts through Maharashtra Institute of Technology Transfer for Rural Areas (MITTRA). Up to 100 broiler/layer units will be set up in the Poultry Estates. Under the rural backyard poultry component of the scheme. which come forward to provide land and infrastructure for this purpose..700 families from these districts. mango and karonda. the various measures have resulted in tribal families taking up irrigated farming. diversifying into vegetable and flower cultivation. supply of inputs and marketing arrangements will be provided. leaf cup making.. which commenced in 2000 and ends in 2011. The total families supported by the project are 13.344. families (target: 10.000 tribal families for cultivation of cashew and mango.000 families) by establishing wadis of cashew and mango along with boundary plantations of fuel wood and fodder on 12. KfW has also sanctioned Phase II (2006-2014) of the programme involving grant assistance of 7 million (about Rs. on 3. The programme has helped to rehabilitate 13.17 crore as grant assistance during the year under the KfW – supported externally – aided projects. vermicompost. brinjal. 5. NGOs will act as facilitators for organising the borrowers.789.47 crore) to cover 4.21 The KfW-NABARD-V-Adivasi Development Programme in Gujarat having an outlay of Rs. On-going Projects 2. The focus is on development of wadi with other supportive interventions like development of water resources and agricultural activities. Apart from increasing farm income through fruit crops. a. interest-free loans of 50% of TFO of the project is available for Mother Units where day-old chicks of lowinput birds are reared for four weeks before distribution to the BPL borrowers.663 37 . etc.293. 2.923 acres of land. women development.20 NABARD received Rs.922 families had been identified and 5. masonry. viz. bitter gourd. coordinating with state Animal Husbandry Departments and banks. which are at various stages of implementation (Table 2.70 crore and disbursed an amount of Rs.

covering 113 watersheds of 1 lakh ha. Phase I (1990-2000) and Phase II (2001-2007) of the programme have been successfully completed.80 422.64 1241. # : Entire loan amount drawn.85 22.10 1432.03.12 454. lakh) Sr. upto 31.12 5397.74 3065.07 250. 109 projects have been sanctioned since January 2005. 17 Feb 2006 31 Dec 2012 9. ** : Complementary Measures being implemented.57 672. i. 7 Dec 2006 28 June 2002 30 Dec 2014 31 Dec 2009 11.38 14.61 94.09 330.00 # KfW-Umbrella Programme for Natural Resources Management (UPNRM) Loan Grant Grant for Accompanying Measures 16 Sept 2009 16 Sept 2009 16 Sept 2009 30 Dec 2014 30 Dec 2014 30 Dec 2014 FC Loan : 15.01 vii.63 1028..48 27.51 443.25 5710. 2. Effective From Closing Date External Assistance ( million) Disbursements made by NABARD During 2009-10 Cumm.52 5910.32 1260.66 297. Of these.36 28 March 2006 31 Dec 2014 7.09 411.23 The Indo-German Watershed Development Programme (IGWDP) introduced in Maharashtra.X.64 86.09 6965.13 672.64 86.Credit Line for RNFS Grant Loans 20 Oct 2006 20 Oct 2006 30 Dec 2008 30 Dec 2008 1. spread across 25 districts.00* 5842.20 ** 40.55 340. while nine projects were completed.94 2929.00 4.42 1283. 27 Aug 2005 30 Dec 2009 19.00 1121.60 15 July 2002 31 Dec 2011 8.00 ii.69 616. upto 31.00 FC Grant : 1.2010 1. 3 i ii iii KfW-NABARD.50 v.15 iv.28 213.1: Externally Aided on-going Projects (As on 31 March 2010) (Rs. Name of the Project No.03. Under Phase III (2005-12).00* (+ 1. service charge is not included under disbursement.5 Suppl. six are 38 . Grant) 6941.00 687. iii. i. 2. KfW-NABARD V-Adivasi Development Programme in Gujarat (Phase I) Adivasi Development Programme in Gujarat (Phase II) 23 Dec 1994 30 Dec 2010 13.4 FC Grant for Accompanying Measures : 3.28 694.57 * : From the year 2009-10. IX-Adivasi Development Programme in Maharashtra Indo-German Watershed Development Programme in Andhra Pradesh Indo-German Watershed Development Programme in Maharashtra (Phase III) Indo-German Watershed Development Programme in Gujarat Indo-German Watershed Development Programme in Rajasthan KfW-Sewa Bank Project 2 June 2000 30 Dec 2010 14.57 294.20 241.29 1255.11 82. is an integrated programme implemented by Village Watershed Committees (VWC) in association with NGOs for regeneration of natural resources.2010 Amount received by NABARD During 2009-10 Cumm.85 vi. ii.98 900.38 14.Table 2.

5 to 2 times. highlighting the long standing bilateral relationship between NABARD and German Development Cooperation (GDC) through German Bank for Reconstruction and Development [Kreditanstalt fur Wiederanfran (KfW) as well as German Agency for Technical Co-operation (GTZ-Deutsche Gesellschaft fur Technische Insammenarabeit) supported by German Federal Ministry for Economic Cooperation and Development (BMZ). • In Asarkheda. pasture land and fallow land in six watersheds reduced by 50 per cent. • Vegetative cover studied using satellite images indicates improvement. Box 2. kitchen sanitation.24 KfW. Mr. visited Darewadi-Shelkewadi watershed.48.Box 2. etc. • Total area under waste land. A Programme Management Unit (PMU) has been set up at Dahod to oversee the implementation from close quarters with the help of three consultants. Mandwa and Kacchigati watersheds.25 The IGWDP in Gujarat envisages rehabilitation of watersheds in four districts (Dahod. Support to natural resource management programmes 1992 ( 128.14 million followed by Phase II with 9.09 million) and support to co-operatives reforms 2004 ( 140 million). SHG federations have been constituted in two watersheds and provided support for onlending to women SHGs formed in the project villages (Box 2. area under Rabi increased by five fold.66 crore) under IGWDP in Andhra Pradesh for rehabilitation of watersheds in four districts (Adilabad. Horst Kohler. pulses and oil seeds increased two folds.69 million). • Yields of cereal crops increased by 70 .2 million) and Rajasthan ( 11 million). drudgery reduction. and in rest of the projects. • Rise in number of cross-breeding (CB) cows by 94 per cent and reduction in indigenous cows by 60 per cent.19 lakh mandays per watershed. Gujarat ( 9. community hall.69 million (about Rs. Medak and Warangal). Maharashtra which was facilitated by Watershed Organisation Trust (WOTR) in February 2010 where a presentation was made.52 crore). The President expressed satisfaction on the good work done in watershed development. • Two to three fold increase in average annual household income from agriculture.94 million. Germany committed a grant of 8. and continued with KfW loan of DM 70 million to NABARD Credit Project – I (1983). Sabarkantha and Vadodara) with a commitment of 39 Maharashtra (Phase-I) with a support of 6. support to SHG bank linkage programme 1996 ( 4. Later. .64 million and Phase -III with 19.3 Impact Evaluation Study of IGWDP Watersheds in Maharashtra by Action for Food Production (AFPRO) : Major Findings • Significant water recharge in almost all dried up wells. Thirty seven projects are being implemented and are in various stages of progress. support for rural non-farm sector 1996 ( 41. 2. Karimnagar. • Women development .4 German collaboration in Watershed Programmes The first Financial Co-operation between the erstwhile Agriculture Refinance Development Corporation (ARDC) and KfW was way back in 1979 with the sanctioning of the Tawa Command Area Development project in Madhya Pradesh.4). Under Natural Resource Management. KfW has approved an additional amount of 2 million (about Rs. Dist Ahmednagar.51. the programmes suppor ted are Watershed Development (1992). Watershed programme was first started in under feasibility report/interim phase (FR/IP) and 93 are under FIP.80 per cent. 9. Tribal Development Programme (1994) and Umbrella Programme on NRM (2008).3. 2. • Employment generation to the tune of 1. The number of wells increased from 17 to 26. Major findings of IGWDP evaluation are provided in Box 2. Thirty-five projects are being implemented with an assistance of Rs.Improvement in drinking water conditions.241 lakh and are in various stages of progress. Panchmahals.11 crore) towards Complementary Measures Programme for capacity building of stakeholders.2 million (approx. Rs.22 million). The President of Federal Republic of Germany.2 million). it increased by 1. it was extended to Andhra Pradesh ( 10.

An amount of Rs. Bihar. Rajasthan.based livelihood projects were sanctioned with assistance of Rs. During the year. The project aims at taking up eco-tourism with social goals through par tnership with State Forest Department.1.03 lakh was received from KfW as reimbursement. Gujarat.61.Initiatives 1. taking the cumulative disbursement to Rs. Maharashtra.488 lakh has been sanctioned to MASUTA Producers Company Ltd. Karnataka. It is a unique experiment attempting to link the best practices of biodiversity conservation and eco-tourism with local community. to be implemented by NGOs.1.89 crore. 8 million from GTZ and 3 million from NABARD). This has resulted in better income to the tribal women. India.36 crore was sanctioned for 30 projects in ten states (Andhra Pradesh. In addition. Karnataka Vivekananda Girijana Kalyana Kendra (VGKK). Karnataka. Himachal Pradesh. and (ii) grant based to loan based funding. The Loan and Financing Agreement with KfW was also signed during the year. These women are dependent on cocoons of tasar silk worm for their livelihood. SHGs.101 lakh as grant) were disbursed. exposure visit–cum-sensitisation programme and on-site capacity building workshops for NABARD officers and potential channel partners were conducted.5 UPNRM Projects .157 lakh for implementing eco-tourism project in BR Hills. State Tourism Department and other funding agencies.40 million ( 19. Dungarpur.433 lakh as loan and Rs.122 lakh as grant) as on 31 March 2010. Pratapgarh and Udaipur).122 lakh as loan and Rs. storage and handling facilities to the tribal women guaranteeing them employment and income throughout the year. Rs.555 lakh (Rs. of Tribal Women UPNRM loan-cum-grant assistance of Rs.2. 2. IGWDP. an NGO. 11 million (about Rs.. Germany had committed grant assistance of Corporation (GDC) for the programme was 30. Tamil Nadu and West Bengal) and in the UT of Andaman and Nicobar Islands. for its sustained performance and innovations that improved the livelihood of the rural poor. Umbrella Programme on Natural Resource Management 2. financial assistance of Rs. Orissa. youth organizations. Karnataka. Two initiatives under UPNRM projects are detailed in Box 2. 25 community managed sustainable NRM .687. Chamarajanagar district. was honoured with Contribution to Community 2009 Award by Project Management Institute. The aim of the project is to serve as a model in forest management and integrating wildlife enthusiasts. Chittorgarh. was sanctioned an amount of Rs. Thirty two projects are in various stages of progress. NABARD has also provided funds for ‘Arjun’ tree plantation and rearing of tasar worms under Tribal Development Fund and watershed development in the area to facilitate convergence for improved and sustainable livelihoods to rural poor. Eco-tourism and Biodiversity Conservation in Biligiriranga (BR) Hills. state governments and mFIs were taken up. Cumulatively. It is a shift from (i) project based to programme based funding.60 crore) under the IGWDP in Rajasthan for watershed development in five districts (Banswara. During the year. (MASUTA) to facilitate 2. b. corporates. marketing efforts through workshops. producers’ companies.4 million from KfW. etc.5. Jharkhand. as on 31 March 2010.1.600 tribal women tasar silk yarn producers in Bihar and Jharkhand. conservationists and tribal communities for their mutual benefit and to demonstrate that everyone can contribute to the process of sustainable natural resource management. The total fund envisaged by Ger man Development Box 2.73. During the year. Tasar Silk Yarn Producers of Bihar and Jharkhand MASUTA Producers Company Ltd.27 The Umbrella Programme on Natural Resource Management (UPNRM) is a loan-cum-grant based programme being implemented since 2007-08 under Indo-German collaboration. The implementation agreement on technical co-operation with GTZ was already executed for 3 million during 2008-09 with an additional 5 million component for Public Private Partnership of included during the year. private limited companies and co-operatives. 40 .26 KfW. publishing marketing flyers and one-to-one contact among NGOs. meetings. A PMU has been set up at Udaipur.223 lakh (Rs.1. MASUTA procures tasar cocoons and provides treatment.79.

An amount of Rs. It is also used for projects with potential to generate employment opportunities.3. 16 projects have been successfully completed and 48 projects were in advanced stages of implementation. is meant to support innovative and risk mitigating experiments in farm.29 The District Rural Industries Project (DRIP). From Sept 2009 till March 2010.6 RIF Success Story .67 crore as on 31. for setting up of central charging station with 50 Solar lanterns and back up battery support for cloudy days. to Rs. New Delhi. These districts will continue to get support from NABARD. They also wish to graduate to a Solar mobile charging unit. District Rural Industries Project Box 2. on successful implementation. 41 .Solar Lanterns for Weavers Among the difficulties faced by handloom weavers in cluster villages is the lack of lighting for the weavers during evening. As on 31 March 2010.6 for a success story). a nondescript village situated on the banks of river Chaandan in Jagdishpur block of Bhagalpur.2009). When in the initial stage it could not be imagined that one single project would bring in changes in so many dimensions. Bihar’s first community-based solar-lantern centralised charging station was installed at Bade Longiyan. In all. Tartila didi tells that male members of her family who undertake weaving would no longer have the fear of any harm to their eyesight.70 crore (including supplementary assistance to projects sanctioned earlier) was sanctioned taking the cumulative commitment. If only they had adequate and uninterrupted light. NABARD-SDC Rural Innovation Fund marketing of minor forest produce by tribals in the state of Andhra Pradesh was successfully completed. based on merit.675. because of the improved lighting. The training of the Ujjala SHG members has been undertaken by TERI immediately after installation.11. advised centralised charging station with 50 Solar lanterns. It was then thought that solar lantern would be a good and clean source of lighting. A project through Ujjala Nawaz SHG of village Bade Longiyan was conceived with a grant of Rs.20. and without health hazards of smoke associated with kerosene.11 crore. During 2009-10. started as a pilot in 1993-94 for creating sustainable employment opportunities enhanced credit flow to the rural non-farm sector (RNFS). their output would increase by 20 to 30 per cent.38. which will give adequate light for 4 to 5 hours at a cost of Rs.28 The Rural Innovation Fund (RIF).69 crore was disbursed during the year for 252 projects. Various workshops were arranged/conducted during the year for 2. 155 innovative projects were sanctioned. GLC flow in 42 districts under various phases reached Rs. During 2009-10. upto 31 March 2010. at a cost less than the cost of 1 litre of kerosene.99 crore. the Ujjala Nawaz SHG is now eager to act as a technical consultant to other SHGs for similar projects. taking the cumulative disbursements to Rs. taking the cumulative number to 252.99 crore and refinance availed of was Rs. was extended to 106 districts by March 2007 and 43 of them phased out by 2007-08.37 crore (up from Rs. levies user charges for each solar lantern. The Energy Resources Institute (TERI).Rural Non-Farm Sector A. the Ujjala SHG has made additional earnings of more than Rs. Maujama didi tells proudly that she is able to get clean light in her home. constituted from 1 October 2005. A diagnostic study on collection and 2. The Ujjala SHG implementing the project. whereas other 38 lanterns are used for augmenting the income of the SHG.17. 45.17.701 units were capacity building of staff and for dissemination of information to partner institutions (See Box 2.10. An amount of Rs.1 per day for SHG with 12 members. B. non-farm and micro-finance sectors. which is also in great demand in their village.65 lakh under Rural Innovation Fund of NABARD.11.000.4. After sanction in August 2009.

C.532 REDPs/SDPs with grant support of Rs. The broad sectors identified for development on priority basis were agriculture and allied activities. benefiting 0. taking the total number of such programmes to 25.5 lakh from Rs. Jharkhand.298.3 lakh and coverage extended to include permanent structure/s as per local requirements.5 lakh units and generating employment opportunities for 44.15 lakh per cluster over 3 years will be made available. participatory clusters including two rural tourism. introduced in 1999 in DRIP districts was extended to all districts. This includes support extended to RUDSETI/RUDSETI-like institutions for incur ring capital and recurring expenditure. Cumulatively. as on 31 March 2010. NABARD decided to develop additional 55 clusters (50 participatory clusters partnering with other agencies and 5 intensively on its own) in 2005-06. NGOs and to PRIs/ PACs.101. capacity building programmes were organised for the participants from banks. During 2009-10. within a period of 3-5 years.629. The cumulative refinance availed of amounted to Rs. government departments and NGOs/VAs. were sanctioned with a total grant support of Rs. food processing. GLC flow aggregated Rs. Orissa and Madhya Pradesh. 107 clusters across 84 districts in 22 States have been approved.53 lakh covering 3. NABARD revised its policy on assistance for setting up R-SETIs. rural tourism. As on 31 March 2010. while under the intensive mode. SHGs. 15 E.7. During 2009-10. The programme encompasses a comprehensive strategy aimed at holistic development of clusters. During 2009-10. D.658. five on-location cluster workshops were conducted.62 lakh rural youth. Strengthening of Rural Haats 2. Since inception. RSETIs 42 .048.1. facilitating establishment of 19. rural small and medium enterprises. 2. handicrafts and handlooms.225 lakh. grant not exceeding Rs.31 NABARD has been implementing the Cluster Development Programme in 56 clusters under the National Programme on Rural Industrialisation (NPRI) from 1999-2000. etc. Rural Haat supported by NABARD. As many as 22 clusters are being supported in the NER alone and a large number of clusters are being developed in backward states like Chhattisgarh. For smooth implementation and monitoring of the initiative. raising income levels and living standards of ar tisans through various planned inter ventions. Under the partnership mode. during the year.24.295. Rural Entrepreneurship Development and Skill Development Programmes Entrepreneurship (REDP) and Skill Development Development 2.48 lakh persons.32 Rural Programmes Programmes (SDP) were supported by NABARD since the early 1990s as proven tools for generating selfemployment opportunities in rural areas.72 lakh was sanctioned to 87 rural haats.set up generating employment for 1.1 crore per cluster for a maximum of 5 years would be provided. grant support up to a maximum of Rs.42 lakh persons.53 lakh has been sanctioned in 188 rural haats across 22 States. Grant Assistance was increased to Rs.11 crore. village bazaar boards. 14. Cluster Development 2. grant support of Rs.46 crore. Cumulative grant assistance of Rs.30 ‘Scheme for Strengthening of Rural Haats’.627 REDPs/SDPs with an amount of Rs.38 lakh were sanctioned.3.63 lakh persons have been supported. During 2009-10.

Financial support for sharing cost of training programmes. RBI and NABARD in the ratio of 40:40:20 in a phased manner over five years. GoI and NABARD made initial upfront contributions of Rs. 43 .35 During the year.48 lakh. to be contributed by the GoI. The guidelines for these two funds have been formulated and circulated among stakeholders. As on 31 March 2010. I.04 lakh during 2009-10. viz.33 As on 31 March 2010.40. 55 co-operative banks and three SCARDBs. NABARD supported 42 training 2.92 lakh and Rs.88 crore. 116 Women Development Cells (WDC) were supported in 58 RRBs. Cumulative grant support of Rs. respectively.39 lakh was disbursed till 31 March 2010.13 lakh. ./other agencies would still be extended on merit basis. were supported with grant assistance of programmes. 119 rural marts in 22 States were sanctioned grant assistance of Rs.set up under GoI/similar scheme. to address gender discrimination in credit and support services.65 lakh have been provided to 321 rural marts across 23 States. Reserve Bank of India has decided to contribute to the funds on reimbursement basis. GoI again contributed Rs. where such support is not forthcoming from Govt.60 lakh. The Committee envisaged that 50 per cent of the excluded rural households (55. conducted by reputed training institutions. for meeting the cost of technology adoption. depending upon utilisation of funds.500 crore. to enhance capacity of these institutions.37 The GoI had set up the Rangarajan Committee on Financial Inclusion (in June 2006) to look into the issues involved and suggest measures for bringing the excluded population into the ambit of financial system.12 crore were issued for facilitating hassle-free availability of credit for investment and working capital requirements of small/ micro-entrepreneurs. Towards this end. Each Fund consists of an overall corpus of Rs.4.50 crore each.6. Women Empowerment Programme 2. respectively to each of these funds.254. where lumpsum capital grant is available.240. were released as on 31 March 2010. The Bank continued to co-sponsor SARAS Mahalaxmi Fair wherein 127 artisans from 26 States participated in the 12-day long exhibition that helped the artisans to realise sales of over Rs. Under Marketing of Non-Farm Products of Rural Women (MAHIMA) and Assistance to Rural Women in Non-Farm Development (ARWIND) schemes. To enable rural artisans/craftsmen realise remunerative prices and to establish marketing linkages. A sum of Rs. Rs.146. for 2007-08.332. H.8 million) should have access to financial services by 2012. two funds recommended by the Committee. 63.198 Swarojgar Credit Cards (SCC) having credit limit of Rs. F. Swarojgar Credit Card Scheme 2.56 lakh. involving credit limit of Rs. Financial Inclusion 2. The cumulative total of SCC was 10.5 crore. 263 marketing events/ exhibitions. Marketing / Other Initiatives Training and Sensitisation Programmes 2. have been set up in NABARD. which benefited 1161 officials from client banks. and the rest by 2015. grant support of Rs.134. the total contribution under FIF and FITF stood at Rs.10 crore for 2009-10 to each of the funds. G. would not be eligible for capital grant assistance from NABARD.36 During the year. ‘Financial Inclusion Fund’ (FIF) for meeting the cost of developmental and promotional inter ventions of financial inclusion and ‘Financial Inclusion Technology Fund’ (FITF).34 During 2009-10.17.10 and Rs.

viz. have been sanctioned for financial inclusion. Nearly 85 BC have been appointed by the banks for the purpose as reported by RBI Working Group on BC Model. Khammam (Andhra Pradesh). A road map has been formulated for achieving financial inclusion by synergising the efforts of all stakeholders. Fund Utilisation : Support to Projects 2. RRBs were advised to consider appointing Farmers’ Clubs as BF. As on 31 March 2010. A model for such projects has been worked out and workshops for RRB Chairmen have been conducted for adoption of such intervention. v Workshops and seminars on financial inclusion were organised at reputed training institutes for the benefit of NABARD officials. met three times during the year. This is expected to have a two-pronged effect. at each of their rural and semi urban branches. Jharkhand and Uttarakhand to CBs/ RRBs/Cooperatives on the lines of support extended in NER and Sikkim. The following policy initiatives were taken during the year: i Scheduled commercial banks and RRBs were advised by IBA and NABARD to achieve a target of adding 250 rural household accounts every year. Latehar and West Singhbum (Jharkhand). Rayagada and Sambalpur (Orissa). which are considered disturbed but don’t figure in the list of critically excluded 256 districts identified by the Committee on Financial Inclusion. leading to far reaching and lasting impact on agriculture and rural development in the country.. ii Business Correspondents/Business Facilitator model along with technology is intended to extend the outreach of banks.8.A. who successfully complete the cer tification programme on Business Correspondents/Business Facilitators from the Indian Institute of Banking Finance (IIBF) and get engaged as BC/BF will be met from the FIF. Ten districts. In order to strengthen the model. NABARD and UNDP have entered into . addressing the need of Financial Inclusion and strengthening FC – a grassroot level local organisation. The BC/BF model is also being implemented for the Government-supported programmes like National Rural Employment Guarantee Programmes and Social Security Pension.89 lakh as on 31 March 2006 as per RBI sources. Gajapati. bankers and officials from other organisations involved in financial inclusion.47 crore and Rs. NABARD-UNDP Collaboration for Financial Inclusion 2. 2. Jammu and Kashmir. are to be given priority as applicable to the 256 districts. (2009). Malkangiri. viz. Deogarh. C.83 crore. Policy initiatives and events during the year gap support in one or two districts per RRB. Himachal Pradesh. Chhattisgarh.7 and 2.255 villages have been covered under financial inclusion through FIF and FITF.40 In addition to financial inclusion initiated under FIF/FITF. the FITF would extend viability 44 B. training cost of candidates. iii In order to facilitate RRBs for undertaking Cardbased ICT project. an amount of Rs. it has been decided to extend financial support from FIF & FITF at 100 per cent of project outlay for eligible activities in Andaman and Nicobar Islands. respectively. The major projects supported under these funds are furnished. in Box 2. respectively.50 crore each of FIF and FITF. constituted by GoI for each Fund to tender policy advice and consider proposals. A Sub-Committee of Advisory Board for FITF. which looks into the ICT-based interventions for extending the financial services met four times.21. Bokaro.19. The total number of ‘no frills’ accounts opened by PSU and private sector banks was around 330 lakh as on 31 March 2009 vis-à-vis 4.38 The Advisory Boards.39 Out of the corpus of Rs. East Singhbum. iv As backward and underfinanced areas need special attention. 50..

This collaboration is part of the Country Programme Action Plan (CPAP) signed between Government of India (GOI) and UNDP.000 candidates over a period of 2 years. 45 .e. Correspondents (BCs) and Business Facilitators (BFs) to Indian Institute of Banking & Finance (IIBF) to cover 20. covering financial literacy and actual provision of financial services by • Support to Thrissur DCCB for setting up of Information Dissemination-cum-Human Resource Development Centre.47. e. Bihar. FCs and retired bank personnel. i.5 lakh has been sanctioned and Rs. A total of 100 members of the FC will be trained in Morigaon district. • Suppor t for Cer tificate Course for Business • Project for Financial Resource Centre at RRB to cater to the capacity building and research needs for upscaling financial inclusion in four districts. Under the NABARD–UNDP collaboration.1. It involves four training programmes for members of 11 FCs identified by the bank. A sensitisation workshop for the Officers-in-charge of the seven focus state ROs of NABARD was conducted and projects have been initiated. Madhya Pradesh. Murshidabad. The overall objective of the collaboration is to provide better access to financial products and services to reduce risks and enhance livelihoods for the poor in at least two states.7 Projects Sanctioned under FIF during 2009 . Capacity Building Programme for LDMs of banks conducted by BIRD. • Support to Kozhikode DCCB for setting up of Credit Counselling and Livelihood Promotion Centre. Orissa.. • Using post office as Business Correspondent of RRB to utilise branches of postal depar tment for business expansion in Uttarakhand. Households not covered by the banking sector to be included under no-frill accounts and SHGs. Chhattisgarh. Jharkhand. Lucknow. .04 lakh disbursed in these seven states. promotion of financial literacy and far mer education through mass media to promote financial inclusion in South Malabar district of Kerala for setting up eight Farmers’ Service Centres/VKCs in eight districts. Nadia. Micro-credit programme in Nagaland with Village Development Boards (VDBs) as inter mediaries for augmenting the corpus of 107 VDBs in Longleng and Kiphire districts of Nagaland. A fund for the collaboration..2010 • Pilot project to establish Farmers’ Service Centres/Village Knowledge Centres (VKCs). especially women and men from SC and ST groups. ‘UNDP – NABARD Financial Inclusion Fund’ has been established in NABARD with UNDP support. Ara m b ag h . Financial literacy by RRB in Assam in Nalbari district. collaboration for financial inclusion in seven focus states. Project for financial inclusion through FC acting as BF of RRB in Assam. viz. • viz. • Total financial inclusion project by DCCB through one-day camp followed by base level survey. Ch a n d i ta l a . collection of deposits and disbursements of loans and collection of repayments.e. i. • • • opening savings bank account /KCC/GCC accounts in five z on es .Box 2. Ta rakes wa r.335 equivalent of Rs. Rajasthan and Uttar Pradesh. • Viability gap funding for the Biometric card project through BC/BF model in NER for Smart card based accounts.. viz. UNDP will provide the project budget for Annual Work Plan 2009 to the tune of US$ 2. mobile credit counselling centres.17. • Capacity building programme for RRB and post office for using Post office as BC of RRB through five training programmes for staff of post offices/banks in Uttarakhand. North and South 24 Parganas of West Bengal... Post office to offer two services. i. • Financial inclusion through BC/BF model in Vidarbha for comprehensive FI through Financial Literacy training – Conduct of 10 Training of trainers covering 300 resource persons drawn from SHG leaders. 2009-10 and 2010-11. Rs. minorities and the displaced.40 crore.98. Sreerampore and Chinsurah of Hooghly district resulting in opening of at least 150 account per camp.

West Siang and Upper Subansiri of Arunachal Pradesh for opening 30.000 accounts.00. Banking Solution through usage of COIN software developed by National Informatics Centre (NIC) in Sikkim by a Co-operative Bank. engaging 104 BCs in two districts.25.20. Card-based ICT solution by RRB for opening of 1. Card-based ICT solution by RRB in Bahraich and Shrawasti districts in Uttar Pradesh to cover 1.20.512 households through seventy-four branches.000 new accounts.000 rural households by implementing ICT solution for Financial Inclusion in 569 villages of Kanpur Dehat district of Uttar Pradesh by RRB.000 card-based accounts. viz. • • Pilot Project for extending financial services to 5000 new customers through BC and enabling contactless smart card and biometric finger print scanning technology in Chamba district of Himachal Pradesh by RRB. 46 .50. Card-based ICT solution by RRB.Box 2. Kankrej and Bhabhar blocks of Banaskantha district and Silvassa block of UT of Dadra & Nagar Haveli). Aizawal and Kolasib in Mizoram. six branches and 10 Multi Purpose Credit Societies (MPCS) in the first phase and five MPCS in the immediate second phase.. To foster social and economic development of the rural people by extending banking services in remote rural areas through 43 bank branches in West Singhbhum and Gumla districts in Jharkhand to open 1.000 beneficiaries in Latehar district by RRB in Jharkhand. engaging 100 BCs in the two hilly tribal districts of Karbi Anglong and North Cachar Hills in Assam to open minimum 1. To provide financial transaction facility in villages by establishing Point of Transaction with infrastructure and technical support to cover 60. • • To provide banking services through one lakh new accounts using BC model and bio-metric enabled mobile services by a commercial bank for transaction at Village Customer Service Points in 194 villages in five blocks of three districts (Mandvi and Nakhtrana blocks of Kutch district.06. engaging 30 BCs in three districts.00. • Implementation of pilot project through BC model using card-based ICT solutions by RRB in Gulbarga and Bidar districts in Karnataka to cover 4. • • Introduction of Gramin Bank smart card in Nainital and Almora districts covering 5000 customers by RRB on pilot basis in the service area of two of their branches.04.50. viz. Card-based ICT solution by RRB for opening 40.000 accounts. To provide financial services to the unbanked population in Gopalganj district of Bihar through card-based ICT solution by RRB to cover 1. • Card-based ICT solution by RRB. Sonitpur & Sibsagar districts in Assam to open minimum 1.90.. Papum Pare.000 cardbased accounts through 50 branches.000 beneficiaries. viz. • • • • • Implementation of pilot project through BC model using card-based ICT solution by RRB in Bellary and Chitradurga districts in Karnataka covering 7.000 accounts in two districts..420 beneficiaries.8 Projects Sanctioned Under FITF during 2009 – 2010 • Pilot project for extending banking services in ten bank branches (one Customer Service Points per branch) in Pali district of Rajasthan through BCs and enabling technology by RRB and providing financial services to 1. West Tripura and Dhalai of Tripura. • Financial Inclusion Project for implementing Core • • Card-based ICT solution by RRB. • Installation of four ATMs in Andaman and Nicobar Islands by a co-operative bank where the services of banks have not penetrated thereby providing banking facilities at their doorsteps to local populace. viz. • Project to provide financial services to 1.000 card-based accounts in two years.000 new accounts in four blocks of two districts. Implementation of pilot project through BC model by RRB using card-based ICT solutions in Hamirpur district of Uttar Pradesh to cover 64.000 new accounts.

an amount of Rs.8 per cent in 2007-08 to 4.649) 36.09.62 (1. SHG–Bank Linkage Programme launched by NABARD way back in 1992 synthesising formal financial system and informal sector.39 (809.76.794 (12.679.857.93 crore in the previous year.60.070) Amount 8. Table 2. The overall progress of the microfinance programme is given in Table 2. as several MFIs availed loans from more than one bank. a large number of Self-Help Promoting Institutions (SHPIs).33 5009.51 (2.03. thus. documentation.64.999.861. The programme is also the main contributor towards financial inclusion in the country. It has removed the interest rate cap for the final beneficiaries under the mF investment.545. It is considered as the largest microfinance programme in terms of outreach in the world and many other countries are keen to replicate this model.21 lakh savings-linked SHGs and more than 42.015.849. livelihood propagation. Particulars No. of which Rs. The RBI also recognised this as part of priority sector lending and normal banking business.26 (1. During 2009-10. 47 . respectively.Microfinance 2.2: Progress of the Micro-Finance Programme (As on 31 March 2009) (Rs.87) 3.25. there were more than 61.941 (9. training and capacity building of stake holders.41 Microfinance has made tremendous strides in India. It has become a household name.978) 50. has become a movement throughout the country.09. At present.27.563.16. converging all development programmes. capital and soft loan assistance to MFIs. studies.21.90 (4.80.46.785. As on 31 March 2009.73 crore and Rs.51) Self-Help Groups 2009 Number 16.05.816. crore) Si.338 (9.49 crore was grant support for promotional activities and Rs.147 (15.84 (5. The share of SHG loan to Ground Level Credit (GLC) increased from 3.74) 16.91 crore was released.15 2748.73) 5. in view of the variety of benefits reaped by the poor from microfinance services.887) 61.2. Self-Help Groups (SHGs) have become the common vehicle of development process. as against Rs.22) 22. SHG Meeting in progress.581) Amount 12.586 (2.15.6 crore poor households have been covered under the programme.84 2009 Number 581 1915 Amount 3732.253.42 crore was for Capital Support/Revolving Fund Assistance (RFA) to MFIs.24.18. about 8.653) 42.770 (2.20.24 lakh credit-linked SHGs and. A. 2008 Number 1 Loans disbursed during the year 2 Loans Outstanding 3 Savings Accounts with Banks 12.09 – – – – Figures in parentheses indicate the share of SHGs covered under SGSY * : Actual Number of MFIs provided with bank loans would be lower. Micro-finance Development and Equity Fund (MFDEF) 2.39) Micro-Finance Institutions (MFIs)* 2008 Number 518 1109 Amount 1970. all the banking agencies and Microfinance Institutions (MFIs) are pursuing this programme for upliftment of the poor. etc.42 The Micro-finance Development and Equity Fund (MFDEF) is being utilised for promotion of various microfinance activities such as formation and linkage of SHGs through SHPIs.07 per cent in 2008-09.

102 117 2624 Amount 626. grant assistance of Rs.037. NABARD has been supporting them through grant and soft loan assistance.10 No of SHGs 5230 3395 53393 Cumulative Sanctions No. During the year. taking the cumulative D.95 189.81 No.18 crore in the previous year. RRBs. trainers.23 3469. registered in various legal forms are supplementing the efforts of the formal banking network in providing credit Table 2. (ii) Capital Support and Revolving Fund Assistance to mFIs 2. Capacity Building of Partner Agencies 2.17 9250 71268 68 2911 684. Support to Partner Agencies support to the unreached clients for inclusive growth. CARE and Planet Finance).entrepreneurs throughout the year. During the year.36. lakh) Agency Sanctions during the year No.74 lakh was released and 2. bankers.70 2878. During 2009-10.6. IAS officers and micro. the scheme for providing grant assistance to MFIs for their rating was revised (Box 2.683 SHGs credit linked to banks.268 groups. entailing an expenditure of Rs. ICRA.3 lakh.9.B. 2. New SHPIs were identified even while supporting the existing ones. Panchayat Raj Institution (PRI) representatives.87 crore was sanctioned to 10 agencies. Rs.10 crore. Recognising their role as a tool for financial inclusion.23 40. capital support of Rs.17 lakh was sanctioned to various agencies for promoting 71. NABARD officials.69 61. The assistance is available for the first rating of MFIs with loan outstanding higher than Rs. of SHGs 59105 47985 345173 Cumulative Progress Amount released 252. NABARD conducted many awareness creation and sensitisation programmes and arranged exposure visits for SHG members.50 lakh and less than Rs. rating suppor t amounted to Rs. Support to Micro-Finance Institutions 2.746 groups (Table 2. NGOs.76 lakhs for five agencies. (i) Support to Banks and MFIs 2.9).46 10766. During the year. As on 31 March 2010.878. M-CRIL. professional fees charged by the rating agency are reimbursed to the bank/MFI concerned. taking the cumulative assistance sanctioned to Rs.93 crore as against Rs.3).91 4037.4.45 Micro-Finance Institutions (MFIs). Under the scheme. DCCBs.74 SHGs formed 44618 54271 244367 14858 9991 368105 SHGs linked 29075 36155 157831 7986 5636 236683 48 .36 429.43 NABARD continued to extend grant support to NGOs.96 63.44 To fine-tune the strategies for up-scaling support to the microfinance sector. could be easily accessed from banks.07 lakh for 4.47 Capital Support is given to MFIs to leverage capital.3: Grant Assistance Extended to various Partners inSHG-Bank Linkage Programme (As on 31 March 2010) (Rs.44 9025.92. so that commercial and other funds required for providing financial services at affordable cost to the poor and achieving sustainability in credit operations over a period of 3 to 5 years.11. Co-operative Banks RRB NGO Farmers’ Clubs IRVs Total 2 319 154.07 40483 492746 7 4 306 Amount 63.766.14 2620.10. FCs and Individual Rural Volunteers (IRVs) for promoting and nurturing quality SHGs.2. subject to a maximum of Rs.46 NABARD continued to provide grant assistance to commercial banks and RRBs for getting the MFIs rated by accredited rating agencies (CRISIL. C.6.

676 Cluster Level Federations and 15 Block Level Federations have been formed. subject to a ceiling of Rs. With an implementation period of eight years (2007 to 2014). 4. taking the cumulative credit sanctioned to Rs.10 crore would be eligible for support under the scheme. In addition.3 lakh. on an ongoing basis 2. the scheme for Capital/ RFA support to MFIs was thoroughly revised to give more support to startup MFIs and at a cheaper cost. for on-lending to the unreached poor.33 crore has been sanctioned for Phase I and Phase II. 100% reimbursement of ‘professional fee’ of the Credit Rating Agency (CRA) for rating of MFIs only. The scheme has been made operational on an ongoing basis. NABARD has initiated work on the project at Head Office. on selective basis.868 SHGs have been promoted under RGMVP of which 12. As on 31 March 2010. envisages a project outlay of US $ 32. the project covers 15 blocks in Phase I and 29 blocks in Phase II. credit linkage and federating of SHGs in select districts of UP in association with participating banks . The Programme Loan Agreement (PLA) has been executed with NABARD designated as the Lead Programme Agency.87 crore for 33 agencies.73 million and is funded by International Fund for Agriculture Development (IFAD) through an assistance of US $ 30 million.92 crore and Rs. 3.49 A programme for ‘Rural Women Empowerment and Livelihood in Mid Gangetic Plains’ called “Priyadarshini” envisaging holistic empowerment of 1.27. Revolving Fund Assistance (RFA) is provided to mFIs. (ii) Priyadarshini Project 2. It covers four districts (Sultanpur. The MFI that had been provided with Capital/Equity/RFA by NABARD under MFDEF will be eligible for assistance for the second rating on a 50:50 sharing basis. who are SHG members coming out of pover ty and willing to share their experiences with rural women of Uttar Pradesh.74. MFIs with minimum loan outstanding of Rs. 49 .9 Grant Assistance for MFI Ratings a) Scheme of Grant Assistance for Rating of MFIs 1. Special Initiatives in Backward Region (RGMVP) . Demonstration effect is given through external Community Resource Persons (CRPs) from Andhra Pradesh.02 crore for 42 agencies. During the year. RFA amounting to Rs. Regional Office and district levels.48 NABARD continued to support the RGMVP.50 lakh and maximum loan outstanding of Rs. subject to improved performance of the MFI. for the first rating of MFI only. as mandated in the PLA. and implementing NGOs. with the balance contribution to be met by the Government of India. Shravasti and Rae Bareily) of Uttar Pradesh and two districts (Madhubani and Sitamarhi) of Bihar. Bahraich.Special SHG Initiative in Various Districts of Uttar Pradesh (i) Rajiv Gandhi Mahila Vikas Pariyojana 2. 2.5. 21. During the year. Banks can avail of 100% reimbursement of expenses towards cost of rating of MFIs up to Rs. credit linked.Box 2. Grant assistance scheme continued beyond November 2009 and is operational as a regular scheme. The idea behind such selective assistance is to experiment with various mF models for innovating the alternative credit deliver y systems and for drawing lessons for sustainability and replicability. respectively. b) Rating/Grading support to MFIs seeking Capital Support and/or RFA under MFDEF from NABARD 1. for forming SHGs.08. formation of 7. was launched with effect from 4 December 2009. so as to make them sustainable over a period of time.000 poor women and adolescent girls through support to Rs. 3. for promotion. a special initiative of Rajiv Gandhi Charitable Trust (RGCT).23 crore was sanctioned to 13 agencies. An amount of Rs. The eight-year programme.749 have been .3 lakh by way of grant.200 SHGs. Regional Offices of NABARD have been delegated powers to sanction and release grant assistance under the scheme. E.11.

State Specific Support in North East Region (NER) 2. (v) Micro-Enterprise Development Programme 2. handloom weavers. craftsmen. (i) Scaling-up of Micro-Finance Programme: Special Initiatives Support to Activity – Based Groups (ABG) credit linkage of SHGs has been enhanced with special focus on hilly/tough districts and resource poor regions. Cumulatively. bank loan/s would cover investment and working capital needs of the groups. non-farm and service sector activities like bee-keeping. 2. screen printing. While grant support would cover group formation. To upscale promotion of JLGs. as on 31 March 2010.e.313 SHG members on locationspecific farm. nurturing and linking and stabilising 50 G.50 NABARD continued to support the scheme for small-scale activity-based groups wherein capacity building. extension services. Further grant support was also sanctioned to the Essomi Foundation . to improve production and realising better price for produce... tenant farmers for farm and non-farm activities separately. could draw refinance for the loans provided to activity-based groups like SHGs. NABARD may provide loans directly to registered groups or through agencies promoting the groups. fishermen.. for staff of the banks. exposure visits. i.54 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 matured SHG members. beauty parlour. 1530 MEDPs were conducted for 38. organic farming. mandap decoration.50. The focus is on forming and nurturing groups engaged in similar economic activities. tailoring.000 for hardware components (one PC unit + LaserJet/dot matrix printer + UPS). In select cases. jute crafts. establishing market linkages. etc. revised guidelines were issued to banks. horticulture and floriculture. NABARD will also extend support for training. to establish a few initial projects where none exists. for the first three years. similar to the BF model. (ii) Financing of Joint Liability Groups 2.Revision of Existing Guidelines 2.55 NABARD continued to suppor t the project sanctioned to Government of Arunachal Pradesh for implementing ‘Micro-Finance Vision 2011’. motor coil rewinding. NGOs promoting a minimum of 250 SHGs would now be eligible for a maximum grant assistance of Rs. etc. group dynamics. with focus on small and marginal farmers. etc. The scheme has both grant and loan components. good repayment culture and prospects of credit enhancement to quality clients. (iv) Scheme for Providing Technology Support to NGOs for Strengthening MIS of SHG 2. an additional handholding support for one year.843 MEDPs had been conducted covering 71. etc. credit and market-related support will be extended.. agarbattimaking. lantana basket weaving. over and above three years has also been allowed. farmers. NABARD will provide yearly promotional grants to banks for forming. During the year.F.52 The promotional grant assistance given to various agencies for forming.518 participants. To ensure that SHGs develop self-expertise in managing themselves. oral lessees. Banks might use the services of suitable JLG-promoting agencies for the interventions. subject to certain conditionalities.53 The scheme of suppor ting NGOs for computerisation of MIS of the SHG-Bank linkage programme has been revised. crochet and chikanwork. (iii) Grant Assistance to Self-Help Promoting Institutions (SHPIs) for Promotion and Credit Linkage of SHGs . plate making from areca-nut. experiencesharing. training.51 Studies conducted in several states by NABARD revealed that JLG financing was a good business proposition on account of the simplified documentation. soyabean and mushroom cultivation. nurturing and financing JLGs. 2.

Incidentally.500 existing SHGs. NABARD sanctioned additional Rs.5 lakh for on-lending to 50 SHGs in East Khasi Hills was sanctioned to India Post and Rs. staff. A total of 11.177 members successfully started micro-enterprises. Accordingly. I. as on 31 March 2010. through adequate financial services.56 To assess the suitability of various innovative initiatives and also enhance the sustainability of MF activities. The state-specific experiences are being evaluated to arrive at strategies for wider replication. age of MFOs. 7. the inventory of MFOs included area of operation. With a view to succeeding in their endeavours in the readily available . of which 1.5. of which 96 per cent underwent orientation and training in their chosen enterprise. based on 3M (Micro credit.Trust for setting-up a Resource Centre at Itanagar. NABARD continued to extend support for various pilot projects. It was implemented in nine districts in nine states. b.45 lakh has been released to the Trust for setting up of Micro-Finance Suppor t Centre.0. Towards this end.59 NABARD – GTZ Rural Finance Institutions Programme (RFIP) undertook the task of creating a detailed information base of the NGOs working as microfinance organisations (MFOs) in 13 priority states.57 The results of SHG-Post Office Linkage Programme in Tamil Nadu has been very encouraging.60 The Financial Inclusion Policy recognises remittances as one of the key components. Other Developments (i) NABARD GTZ Studies a. farm related activities. 2. Its objectives were: (i) to get clear position of MFOs. etc. formation and credit linkage of 35. The study confirmed the magnitude and significance of remittance issue and identified important points for the way forward. NABARD in association with GTZ conducted a scoping study on remittance needs. RFA of Rs. NABARD continued to provide technical support to the State project on SHGs being implemented by Government of Tripura for credit linking of 11. Pilot Pr o j e c t s 2. At present.58 The pilot project launched in 2005-06 for promotion of micro-enterprises. most of these micro remittances are sent via informal channels. The inventory survey revealed that 786 MFOs were in operation.321. has come to an end.195 SHGs have been credit linked by post offices.714 SHG members were identified. (ii) to know the profile and nature of activities of MFOs and (iii) to understand the capacity development needs of the MFOs. MFOs: 2. Remittances: 2. H. with high geographical concentration (75%) in two states only (Andhra Pradesh 62% and Tamil Nadu 13%) and the remaining were scattered over 11 States. The project utilises vast network of post offices in rural areas in disbursement of credit to the rural poor. client outreach.000 new SHGs to promote livelihood activities among three lakh SHG members. Micro planning) approach. legal status. The project is also being implemented in Meghalaya. local markets. it was found that states with high concentration of MFOs were also having high concentration of SHGs and substantial SHG-Bank credit linkage. Cumulatively. It is very important for Indian migrant workers and the financial sector that micro remittances get included in the formal systems of the financial sector. types of services provided. Out of these. on agency basis. An amount of Rs.50 lakh released so far. the focus of most entrepreneurs was on traditional. with loans amounting to Rs.200 lakh RFA to India Post for onward lending to SHGs. loan per client. Micro market. An estimated 100 million migrant workers in India regularly need to remit money to their homes.25 lakh.828 SHGs have opened zero interest savings accounts. NABARD entered 51 (ii) Pilot Project for Promotion of Micro-Enterprises 2. (i) SHG-Post Office Programme 2.

etc.94 crore to SEWA bank during 2009-10. Nabcons has been approved as a pass-through agency by Ministr y of Rural Development. Nabcons opened a liaison office in Nairobi. are its clients.1. it was decided to take the project to the full implementation phase. NRM. APRACA. Government of India. to garner potential rural development consultancies in the African continent in the areas of mF. the company ear ned an income of Rs. Nabcons has started capacity building programmes for co-operative banks in treasury and investment management. SHG members.63 NABARD Consultancy Ser vices Pvt.61 The NABARD-KfW SEWA Bank project under implementation in Gujarat aims at providing access of rural and urban women to micro credit. Further.168 lakh from income on investments. Remittances and Payments System will be an additional component of RFIP. deliverables and important institutional arrangements for the envisaged component. awareness programmes on commodity trading for FMC and Winery Project in TN. even while continuing with the third phase of MPLAD monitoring. Progress 2.65 During the year 2009-10.278 lakh consisting of Rs.110 lakh from Mutual Fund Distribution and Rs. the team also visited Maharashtra RO. A. Rs. subject to the positive outcome of a joint appraisal that was launched in January 2010 to appraise and identify the concept. established itself as a professional consultancy service provider in agriculture. taking the cumulative release to Rs. on the basis of which. 52 .87 crore The pilot phase of the programme has ended and a mid-term review was undertaken by KfW. (Nabcons). development programmes.3 lakh was other (miscellaneous) income. a grant assistance of Rs. state governments.into agreement on joint technical cooperation within the framework of the on-going RFIP. NGOs and banks.62 A team of the coordinating Ministry for Economic (ii) KfW-SEWA Bank project: 2. Ltd. Nabcons signed Memoranda of Understanding (MoU) with a number of banks and International Consultancy Organisations for promotion of business.711 lakh as against 122 assignments for Rs. KfW has released Affairs of the Republic of Indonesia visited NABARD from 28 to 30 December 2009 to understand the role and functions of NABARD in Microfinance. Apart from NABARD HO.6.64 Nabcons has procured assignments for third-party monitoring of infrastructure projects from Arunachal Pradesh and Jammu and Kashmir Governments. (iii) Study Visit of an Indonesian Delegation 2. like DPR on embryo transfer technology.1.666 lakh last year and completed 62 assignments involving consultancy fee of Rs. NABARD and SEWA Bank. commercial banks.997 lakh from assignments. During the year 2009-10. a subsidiary of NABARD. small entrepreneurs. Rs. UPDASP. Nabcons undertook assignments for APRACA relating to micro finance policy and regulatory framework in Mongolia and Uzbekistan and for preparation of technical guide on bank linkage.2. Kenya on 2 October 2009. Nabcons made inroads into new areas development of coffee plantations.1. One such programme was conducted for Raigad DCCB and six for Maharashtra State Cooperative Bank. NABARD Consultancy Services 2. GoI for assisting skill development and training programme under SGSY package. The German Government has committed 5 million to this new component. during the year. Nabcons contracted 83 assignments with a fee of Rs. Nabcons is at present executing one assignment on impact study on 2. allied activities and rural development. Important Developments B.1. Efforts are on to obtain similar assignments from other state governments. etc.099 lakh.

Lucknow). The study recommended and stressed on adequate supply of organic inputs. training and upgrading skills of personnel of client institutions and disseminating research findings. role of farmers’ association in organic certification. In all the states. The Fund is to provide financial support to select agencies for promoting applied research projects/studies. lower interest rates. yield.61. Bio resources.98 lakh was utilised from the fund for supporting activities like research projects/ studies (Rs. six projects/studies sanctioned earlier were completed during the year.88.84 lakh). Some of the suggestions from farmers in the study area included minimal documentation. fisheries. The study revealed inter-agency and inter-district variations with regard to the year of achievement of doubling of agricultural credit. Pune examined some of the issues in organic cotton farming like inputs use pattern. adequate and timely dissemination of organic market information of the domestic and export markets. Tamil Nadu (TNAU. Utilisation of the Fund 2. biotechnology.16 lakh).95 lakh). Jabalpur). B.70 The study on ‘Prospects of Advancing Organic farmers. A. Coimbatore) and Uttar Pradesh (Banker’s Institute of Rural Development. and other activities (Rs. Pune).118. grant assistance of Rs. seminars (Rs. plant pathology.18. Farming for Cotton Crop’ by Gokhale Institute of Politics and Economics. As on 31 March 2010. Agro food processing.10 lakh were sanctioned. management strategies. vis-à-vis inorganic cotton farming. The study suggested the need to orient agriculture credit policy towards marginal and small C. nine research projects involving a grant assistance of Rs.52 crore. Research Projects/Studies 2. Jaipur). commodities futures. Rajasthan (Institute of Development Studies. symposia and workshops covering subjects/ areas relatedto agriculture and rural development including the dynamics of banking sector reforms. creating awareness on the benefits of organic farming. the commercial banks fared better than the RRBs and Co-operatives. training/summer placement (Rs.69 Studies on the implementation of ‘Doubling of Agriculture Credit’ for the period 2004-05 to 2006-07 were conducted in Madhya Pradesh (Xavier Institute of Development Action and Studies. agri marketing. there was no precise definition and provision for recording data of new farmers/ new accounts.71 lakh was sanctioned to various universities.68 During 2009-10. etc. etc. Seminars. flexibility in repayments. with rebates in case of crop failure and creation of awareness about KCC. tenant farmers. Rs.50 crore since 2004-05. etc. cost. Agripreneurship and Rural Development. net returns.71 During the year. use of Coal Ash in Agriculture and Forestry. A comparative analysis of organic and inorganic cotton farming revealed the advantages of organic cotton farming in terms of lower cost.802.67 During the year. in Yavatmal (Vidarbha) and Dhule (Khandesh) districts of Maharashtra. imparting training to farmers regarding organic practices. conferences. The grant support extended to the organisers enabled them to document the proceedings and publish background papers.food security.03 lakh). 2. research institutes and other agencies for organising 112 seminars. The corpus of the Fund has been kept at Rs. Further. the cumulative disbursement stood at Rs.137. horticultural research.66 The Research and Development (R&D) Fund was set up in NABARD in 1982-83 as mandated by NABARD Act 1981. higher profits and employment and reduced yield risks.. In the current Management Information System maintained by the Rural Financial Institutions (RFI). Conferences and Workshops 2. Maharashtra (Gokhale Institute of Politics and Economics. poultr y production.982.100. thus 53 . 2.RESEARCH AND DEVELOPMENT ACTIVITIES 2. sharecroppers and oral lessees for accessing credit from formal institutions and to evolve a uniform reporting system for ‘new farmers’.

allied sector.77 A Technology park set up in BIRD premises with the support of technology vendors.75 NABARD continued to provide financial and other support to training institutions like Bankers Institute of Rural Development (BIRD).507 participants (Table 2.15. Out of 261 training programmes conducted by BIRD. During the year. National Institute of Rural Banking (NIRB).5). that could be introduced for the benefit of its constituents. B. entailing expenditure of Rs. Mangalore included one exposure programme on microfinance for senior level officials of SANSA Development Bank. Occasional Papers 2. Regional Training Centres (RTCs) at Mangalore and Bolpur. from the R & D fund during the year for capacity building of the staff of RFIs.25. Bolpur Total 192 103 73 368 Programmes Conducted 2008-09 2009-10 257 91 86 434 261 93 113 467 2007-08 4311 2399 1778 8488 Personnel Trained 2008-09 6616 2065 2268 10949 2009-10 6139 2474 2894 11507 54 . 2.65 lakh was utilised Training of Personnel A. F. two Occasional Papers on ‘Economics of Cashew in India’ and ‘Economics of Pulses Production & Processing of India’ were published. an amount of Rs. RTC-Bolpur. Mangalore RTC. During the year. D. Sri Lanka. E. 467 training programmes were conducted by the TEs covering 11.facilitating wider dissemination of the recommendations/ action points and initiate suitable policy interventions by agencies concerned. 27 programmes were conducted in collaboration with NBSC. The students are assigned tasks/projects of relevance to the Bank to generate new product and service ideas.74 The Summer Placement Scheme is implemented since 2005-06 to enable students selected from reputed agriculture and management institutes. agri-business and social development were assigned to 57 students by 21 ROs.. Guwahati.5: Training of RFI Personnel (Nos. The programmes conducted by RTC. Manpower Development and Management Institute (MDMI)Shillong and Indian Institute of Bank Management (IIBM).72 NABARD continued its endeavour of publishing Occasional Papers to generate and disseminate information on policy issues related to agricultural and rural development.76 Three training establishments (TEs) have been set up by NABARD. establishments (TEs) and HO. Lucknow RTC. During 2009-10. RTC-Mangalore and C. projects on agriculture and rural development. Developments in 2009-10 2.) Institute 2007-08 BIRD. for display of Table 2. to be associated with various projects/studies taken up by NABARD in agriculture and rural sectors. Training and Sensitisation Programmes BIRD-Lucknow to provide advanced training to the RFI personnel and to supplement the efforts of other training institutions through technical support.73 Apart from extending grant assistance for various R&D activities. viz. Lucknow for 547 par ticipants from client institutions. Summer Placement Scheme 2. Lucknow. Training of Personnel of RFI 2.52 lakh. Bangalore. Training Activities 2.

088 participants during 2009-10 as against Rs.194.78 NABARD had established the Centre for Microfinance Research (CMR) in 2008 at BIRD and four sub-centres at Guwahati. Further. twelve ACSTIs and three ITIs set up by SCARDBs and SCBs. JLTCs. B a n g a l o re f o r c o n d u c t i n g 1 7 t r a i n i n g programmes under which 196 par ticipants were covered. The scheme has been revised and extended for a period of three years from 1 April 2010 to 31 March 2013. 2.80 An APRACA Centre of Excellence (ACE) in Linkage Banking was set up in CMR. ‘The Microfinance Review’. Guwahati towards 15 per cent share in revenue expenditure. grant assistance of Rs. Agricultural Co-operative Staff Training Institutes (ACSTIs) of SCBs and Integrated Training Institutes (ITIs) out of the Co-operative Development Fund (CDF). ACSTIs and ITIs out of the CDF for conducting 1019 programmes covering 12. respectively. During the year 2009-10.330. continued to focus its efforts to make the training system of the co-operative credit structure more professional.7. during the year. 55 . An amount of Rs. During the year. During the year. A total amount of Rs. During 2009-10.20 lakh was disbursed to the JLTCs.92 lakh from its R&D Fund to the Indian Institute of Bank Management (IIBM). 2. NABARD sanctioned grant assistance of Rs. The CMR also identified 20 projects for research and brought out the first issue of its half-yearly journal.53 lakh to National Institute of Rural B a n k i n g ( N I R B ) . to enable them to improve their training system.81 During the year. the bank provided technical and financial support to seven JLTC.24 lakh was released t o N I R B .390. It will act as a Leading Centre of knowledge in Linkage Banking. The ACSTIs.82 NABARD has been extending funding support under SOFTCOB to Junior Level Training Centres (JLTCs) of SCARDBs.70 lakh was released by NABARD to CMR taking the cumulative assistance to Rs.74 lakh disbursed for conducting 303 programmes covering 6. Patna.18 lakh. Lucknow during the year 2008-09 in collaboration with GTZ. 2. NABARD during the year. Chennai and Jaipur to conduct research in various themes of micro finance covering all regions of the country. C-PEC completed the preliminary work of inventory of training institutions in the co-operative sector.146 participants during 2008-09.24. inclusion was inaugurated by the Chairman. TNA study of the short-term co-operative credit structure (STCCS) and conducted workshops for zonal stakeholders. B a n g a l o re f o r c o n d u c t i n g 2 1 programmes.4.equipment and technology relating to financial 2. a national seminar on ‘Microfinance – Issues and Challenges’ was organised by CMR. NABARD released Rs. It is expected that C-PEC will begin rolling out certified Training of Trainers (TOTs) Programme and accreditation of training institutes from 2010-11. All the co-operative credit institutions and the training establishments have been addressed by C-PEC for seeking accreditation and to participate in the initiatives for infusing a professional attitude in the co-operative workforce.79 T h e C e n t re f o r Pr o f e s s i o n a l E x c e l l e n c e i n Co-operatives (C-PEC) set up at BIRD. and ITIs will be eligible for additional assistance under the revised scheme as support from NABARD for linking their activities with CPEC. 2.

Agriculture Development Finance Companies (ADFCs) to supplement their financial resources for enhancing credit flow to agriculture and rural sectors. which ranged between 40 and 50 per cent of their RLP.069 crore. a. 2008. commercial banks. with net NPA up to 10 per cent. SCBs were made eligible for the incentive.4 SCBs in Andaman and Nicobar Islands. 3. it was decided that credit limit applications need not be routed through RCS. 3. 3. 2008. 1949 (AACS)..5 As an incentive to co-operative banks that 3. between 10 to 15 per cent and above 15 per cent. as required under the GoI package for revival of STCCS. and (c) co-financing viable projects with commercial banks. considered for relaxation in NPA norms and provided enhanced quantum of refinance between 45 per cent and 55 per cent. In states with two-tier structure. Short-Term Refinance State Co-operative Banks (SCBs) Support for Operations Seasonal Agricultural resulting in increased refinance made available to them. Chhattisgarh. 3. Act.3 The refinance assistance to co-operative banks for Shor t-Ter m Seasonal Agricultural Operations (ST-SAO) was linked to net NPA level of the banks. Sikkim and Uttarakhand were covered maximum number of new farmers during 2008-09 on account of implementation of ADWDR Scheme. if at least 25 per cent of the total crop loan had been disbursed to new beneficiaries under ADWDR Scheme.6 The short-term refinance assistance to Himachal Pradesh. Orissa and West Bengal were made eligible for additional refinance up to 5 per cent over and above the applicable quantum of refinance.2 The total financial support extended by registering a growth of 13 per cent over 2008-09 (Chart 3. 56 co-operative banks and RRBs indicating credit limits and . viz. regional rural banks. scheduled primary urban co-operative banks (PUCBs). it was decided to provide additional credit limit of 5 per cent of their RLP for the year 2009-10 to two DCCB in each state having a three-tier structure. NABARD during 2009-10 stood at Rs. Bihar. Jammu and Kashmir. The limits were further enhanced by 5 per cent of RLP after the mid-term review in December 2009. In the case of states that executed MoU and amended their Cooperative Societies Act. North Eastern Region (NER). Relaxations were also granted to co-operative banks not complying with section 11(1) of B. respectively. (b) providing loans to state governments for rural infrastructure projects under the Rural Infrastructure Development Fund (RIDF).III Business Operations The business operations of NABARD mainly comprise (a) providing refinance support to co-operative banks. continued to be at 30 per cent. R.1). SCBs in eastern region. The stipulation of minimum coverage of SF/ MF. In addition.57. This chapter details the business operations and achievements of the Bank during the year. 35 per cent and 30 per cent of Realistic Lending Programme (RLP). Consolidated limits were sanctioned to SCBs on behalf of eligible DCCBs to the extent of 40 per cent. i. Production Credit A.

hitherto followed.31) Handloom weaving Figures in the parentheses refer to percentage share. 57 . western (Gujarat and Maharashtra) and central (Madhya Pradesh. 3.40) 17212(87. The assessment nor ms.10 Refinance assistance for weavers credit limit (short-term) to co-operative banks for working capital requirements of Primary/Apex/Regional Weavers was linked to net NPA level. The credit limits included Rs. 17 and 16 per cent.436.21 crore. as on 31 March 2008.17.199.1: Short term refinance (Production credit) for the last five years (Rs.5. of the aggregate credit limits sanctioned. The share of refinance availed by the co-operative banks in the NER continued to be low despite relaxations. The refinance assistance for weavers credit limit (short-term) to commercial banks for working capital requirements of cooperative societies for production and marketing of handloom products.448 crore sanctioned during 2008-09. The utilisation included an amount of Rs. Kerala. Uttarakhand and Uttar Pradesh) regions accounted for 20.25 crore.8 While SCBs in northern (Haryana.15. Karnataka. SCBs reached a maximum outstanding of Rs.95 crore for the Oilseeds Production Programme (OPP). A consolidated ST (Others) limit was sanctioned to SCBs on behalf of eligible DCCBs.18. ST-SAO limits were sanctioned ii. Support to Weavers 3. SCBs in southern (Andhra Pradesh.9 Support for Short-term (Others) Short-term (Others) included ST-agriculture/allied activities/marketing of crops/ pisciculture/industrial co-operative societies (other than weavers)/labour contract and forest labour co-operative societies (including collection of minor forest produce)/rural artisans (including weaver members of PACS/LAMPS/ FSS)/procurement and distribution of agricultural inputs.70) 24715(96.1. to 20 SCBs aggregating Rs. 2008. Puducherry and Tamil Nadu). Relaxations in NPA norms extended to Eastern and North Eastern regions in the case of ST-SAO were made applicable for ST-Others. SCBs with net NPA not exceeding 10 per cent.809. Himachal Pradesh. Rs.99 crore for credit requirements of tribals under the Development of Tribal Population (DTP). Orissa and West Bengal) accounted for 12 per cent. were considered eligible for refinance. respectively.1. Table 3. against which the utilisation was Rs.592.66 crore during 2009-10 with a utilisation rate of 96 per cent. ST.7 During 2009-10. iii.155. Chhattisgarh. Nagaland and Sikkim SCBs were sanctioned credit limits aggregating Rs. Consolidated limits were sanctioned to SCBs on behalf of eligible DCCBs. 3.62 crore for National Pulses Development Programme (NPDP) and Rs. Meghalaya.15) 14168(88.maximum outstanding for the last five years are given in Table 3. Punjab and Rajasthan) region accounted for 35 per cent. Eastern region (Bihar.Labour Contract Co-operatives engaged in civil work in rural areas were also made eligible for refinance under ST (Others) during the year. Relaxations in NPA norms as extended to Eastern and North Eastern regions in the case of ST-SAO were made applicable for weavers also. crore) Year 2005-06 2006-07 2007-08 2008-09 2009-10 Limit sanctioned 12080 16089 18291 19627 25661 Maximum outstanding 10769(89.5. 3. for different purposes were continued.109 crore as against Rs.06) 16352(89.43 crore towards disbursements made as incentive to co-operative banks that covered maximum number of new farmers during 2008-09 on account of the implementation of ADWDR Scheme.

546. Jammu & Kashmir. Tamil Nadu and West Bengal) for production/ procurement/marketing activities.05 crore) SCARDBs at 4.87 crore) and Rajasthan (Rs. as against Rs. Uttar Pradesh with the limit of Rs.166.740 crore) and Karnataka (Rs. Scheduled commercial banks having net NPA of less than 3 per cent as on 31 March 2008.6. and making profit in 2007-08.779. which varied between 25 and 35 per cent. which was utilised fully. b. 3.78 crore as against Rs.143.e. 3.177. Puducherry.14 The RRBs in Eastern Region (Bihar.366). 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.85 crore for Oilseeds Production Programme (OPP).180. The maximum outstanding was Rs. Refinance of Rs.15 During 2009-10. without accumulated losses. 4.95. 25 and 20 per cent of RLP during the mid-term review. 30. 3. Jharkhand. c. West Bengal).4. Kerala (Rs.897 crore).21. followed by Andhra Pradesh (Rs..74.23 crore. limits of Rs.781 HWG have been credit linked. Jharkhand (500).27.individual weavers.32 crore were sanctioned to five SCBs (Andhra Pradesh. West Bengal (88).265. . viz. The RRBs in the Himachal Pradesh. Five RRBs in North Eastern Region were sanctioned credit limit of Rs.832.3. State Co-operative Agriculture and Rural Development Banks 3. Rajasthan (Rs.12 The scheme of extending short-term (ST) refinance to State Co-operative Agriculture and Rural Development Banks (SCARDBs) for SAO was continued during the year.66 crore in the previous year. i.6. North Eastern Region and Uttarakhand were granted relaxation in NPA norms and enhanced quantum of refinance varying between 30 per cent and 40 per cent. Bihar (82) and other States (43).823 crore). to facilitate greater credit flow. While RRBs with net NPA up to 5 per cent were eligible for refinance to the extent of 25 per cent of their RLPs. RRBs. RRBs having net NPA between 5 and 10 per cent were eligible for refinance to the extent of 20 per cent of RLP. Assam (272).13 crore were sanctioned to 80 RRBs under ST-SAO as against Rs.79 crore forming 99 per cent of the limit sanctioned during 2009-10. net NPA of which exceeded 10 per cent.92 crore was extended to Kerala Tea Garden 58 . Regional Rural Banks 3. were made eligible for additional refinance up to 5 per cent over and above the applicable quantum of refinance.00 crore for National Pulses Development Programme (NPDP). Orissa (1. were eligible for refinance up to 15 per cent of RLP. handloom weaver groups and master weavers was also linked to net NPA level. The maximum outstanding was Rs. Rs.81 crore sanctioned to 76 RRBs in 2008-09.220).1. Chhattisgarh. 1.577. ST (weavers) credit limits aggregating Rs.5 per cent interest rate for lending to the ultimate borrowers at 7 per cent. Orissa. Of these. During 2009-10. RRBs were advised to increase lending to tenant farmers and oral lessees through the JLG Scheme or otherwise. Karnataka (498).545 crore).63 crore during 2008-09. Madhya Pradesh (103). Karnataka.11 During the last three years.86 crore for Development of Tribal Population (DTP) and Rs. Weavers’ Groups (HWG) were formed by banks in 12 states. This was further enhanced by 5 per cent.079 crore accounted for the largest share of credit limits sanctioned.13 Refinance to RRBs was also linked to net NPA levels. were considered eligible. Andhra Pradesh (1.172 Handloom (Rs. The limit included Rs.

An amount of Rs. co-operative banks and RRBs for deploying their own funds for crop loan upto Rs.24 crore (59 per cent). respectively.OSAO) ST . The aggregate limit for ST-OSAO sanctioned during 2009-10 was Rs.1.125. Interest subvention of 2 per cent per annum was available to public sector banks.5 59 . Orissa and Uttar Pradesh. Interest Rates on Refinance Assistance 3.3 lakh per farmer.60.0/4.18 NABARD continued to act as the nodal agency for the package announced by GoI for loan assistance to co-operative sugar mills from co-operative banks.0 per cent and 4.Financing of Primary Weavers’ Co-operative Societies ST-Other than SAO loans (ST. the interest paid on crop loans by such farmers was effectively 6 per cent. provided the ultimate borrower got such loans at 7 per cent interest rate per annum.56 crore was provided by GoI to NABARD. Interest subvention for 2009-10 was estimated at Rs.5 5. Out of Rs. Maharashtra. Table 3. GoI placed Rs.3. The maximum utilisation was Rs.17 Other Initiatives Interest Subvention to Farmers The continuance of the interest subvention scheme was announced in the Union Budget 2009-10.318. An amount of Rs. This was to reward the prompt payers even while helping the lending institutions by declogging the line of credit. 3. Package for Sugar Industry 3.138.2. Aggregate interest subvention of Rs.205.5 7. Under the Scheme for ‘Providing Financial Assistance to Sugar Undertakings – 2007’ for payment of cane dues for 2006-07 and 2007-08 sugar seasons. b.Working capital requirements of SHDC MT (Conversion) loan LT loans to State Governments Agency SCB/RRB SCB SCB SCB Scheduled Commercial Banks RRB SCB & Scheduled SCB/RRB State Governments Interest Rate 4. a. RRBs having net NPA upto 5 per cent were eligible for refinance. to those farmers who repaid crop loans promptly within one year of disbursement.80 crore in the previous year. financing persons belonging to the weaker sections engaged in trade/business/service activities including distribution of inputs for agriculture and allied activities.5 8.17 crore has been disbursed for 2008-09. Suitable interest subvention was given to NABARD for c. B. Gujarat. Purpose 1 2 3 4 5 6 7 8 9 SAO SAO against Pledge of securities ST (Others – other than weavers) ST (Weavers – Primary and Apex/ Regional Weavers’ Co-operative Societies. No.0 8.284. pisciculture.54 crore received from GoI as interest subvention.5 8. RRBs and scheduled commercial banks and long-term (LT) loans to state governments for contribution to share capital of co-operative credit institutions during 2009-10 are indicated in Table 3.) ST – Weavers .22 crore pertaining to 76 co-operative sugar mills was released to the co-operative banks. co-operative banks and RRBs for the year 2007-08.0 7.07 crore was estimated as claims from banks for these years from 2008-09 to 2010-11. village/cottage/tiny sector industries.5 per cent interest rates.600 crore.113.1.131.16 Consolidated limits were sanctioned to RRBs for ST .542 crore. Karnataka. providing concessional refinance to SCBs and RRBs at 4. An additional subvention of 1 per cent was announced during the year.0 7.97 crore was sanctioned to 59 sugar mills operating in Goa.5 8. approved purposes like production and marketing activities of artisans (including handloom weavers). against Rs. An additional sum of Rs.190.2: Rates of Interest on Refinance (Per cent) Sl. Rs.2.Other than SAO (ST-OSAO) to the extent of 60 per cent of their RLP for eligible purposes like marketing of crops.19 The rates of interest on ST/MT refinance to co-operative banks. Thus.71 crore with NABARD for release against interest subvention claims.

Eastern States (Bihar. The refinance support extended was 100 per cent for all purposes to all agencies. and having ‘A’ Audit classification were exempted from government guarantee. Refinance was also extended to Section 11(1) of B. Refinance Support 3. (ii) SCARDBs with recovery of less than 30 per cent. Sikkim. SCBs that were profit making during 2007-08 with no accumulated losses. Orissa and West Bengal). As a result. Concessions include 100 per cent refinance. Security Norms 3. Chhattisgarh. alternatives like pledge of government securities or fixed deposit receipts issued by scheduled banks were considered. A special reduction of 50 basis points was provided to commercial banks in NER (Assam.5 per cent. 3. The interest rates.009. (iii) commercial banks/PUCBs with net NPA of more than 3 per cent.10.R. Arunachal Pradesh. (iv) RRBs with deposit erosion of more than 30 per cent.5 for ADFC/NEDFi. recording an increase of 14 per cent. and (ii) the rate of interest on refinance to commercial banks was reduced by 0. Jharkahand.Investment Credit A. Mizoram. Nagaland and Tripura). Special Package for NER and Sikkim 3.08 crore as against Rs.535. including Section 11(1) of BR Act (AACS) non-compliant SCBs/DCCBs and to non-scheduled SCBs was against government guarantee only. Andaman & Nicobar Islands and Lakshadweep. Act (AACS) noncompliant SCB/DCCB in states that executed MoU for implementing the GoI revival package for revival of STCCS. with effect from 1 March 2010. for all eligible purposes. Refinance to other SCBs. concessional interest rates on refinance and relaxations in eligibility criteria in respect of recovery and gross/net NPA.23 The changing market conditions and their impact on the cost of funds for NABARD led to the interest rates being revised four times during 2009-10. (i) SCBs with gross NPA of more than 20 per cent.22 The release of refinance to SCARDBs as also to SCBs/DCCBs for farm and non-farm sector activities was against government guarantee. Hilly States (Himachal Pradesh. the client financial institutions in Bihar. as on 31 March 2008. D. Jammu & Kashmir and Uttarakhand).24 The refinance disbursed (including ST-SAO to SCARDB) during the year was Rs. SCARDBs and RRBs continued to be classified under A/B/C/D categories based on the level of gross/net NPA against loans and advances outstanding. net NPA of less than 5 per cent. However. NABARD continued to grant relaxation to commercial banks. recovery performance.21 With a view to enhancing the flow of credit to NER and Sikkim. co-operative banks and RRBs operating in the area. Interest Rates on Refinance 3. . 7. net worth and profitability.29 crore in the previous year. The rate on interim finance to SCARDB and ADFC was 9.12. Orissa and West Bengal have benefited. to enable SCB and RRB to avail of refinance for ST (SAO).5 for RRBs/ co-operative banks and 6. 60 E. SCBs. However.20 The policy of preferential treatment to states in North-Eastern and Hilly Regions was extended also to the states in Eastern Region during 2009-10. In the event of government guarantee not forthcoming. Meghalaya. stood at 8 per cent for commercial banks. Manipur. and (v) NBFCs with net NPA of more than 5 per cent were considered ineligible for availing refinance during the year. respectively. Refinance Policy and Eligibility Criteria C. The initiatives operationalised during 2009-10 were: (i) NPA norms were relaxed by 5 and 3 per cent. respectively.5 per cent. B. Jharkhand.75 and 6.

73 2.17 100.18 12. non-farm sector (NFS) (28. Himachal Pradesh. followed by north (20%).00 a) Agency-wise Disbursements of Refinance Nadu and Uttar Pradesh. 3.27 During the year 2009-10.56 9.14 43.51 5. followed by farm mechanisation (14.950. Punjab. though commercial banks availed of the highest refinance at 50.9%) and Self-Help Groups (SHG) (26.5). c) Sector-wise disbursements b) Spatial Distribution of Refinance 3.29 Share (%) 18. while those of SCARDBs decreased.313.2009-10 2221.535.26 Refinance disbursement across regions varied widely with the highest share being in the south (50%).2).4/Chart 3.99 3.86 7.44 per cent. their share showed a decline from the previous year (55.58 0. Orissa. Kerala.54 801.42 9. In absolute terms. all the agencies recorded increases in availment of refinance (Table 3.55 3. The shares of RRBs.44 20.46 0.879. poultry/ SGP/ AH-others.04 1. SCBs and PUCB/ADFCs increased.986.08 Share(%) 18.69 17.867. Ninety-six per cent of the refinance to SCARDBs was in Haryana.3: Agency-wise disbursement (Rs.58 826. storage/market yard.61 55.27 Share (%) 21. Haryana. Gujarat.68 25. An analysis of the data for the latest three years revealed that farm mechanisation.2008-09 1. while around eighty-eight per cent of the refinance to SCBs was in Andhra Pradesh. Uttar Pradesh and West Bengal.00 Disb.30 1251. Uttar Pradesh and West Bengal. Punjab. however. Karnataka.01 10.25 During 2009-10. dairy development. Karnataka.43 50.04 100.01 100. Kerala.50 10. Karnataka.Table 3.19 2457.3).00 Disb. Punjab.19 1. crore) Agency SCARDB SCB Commercial Banks RRB PUCB/ADFC Total Disb. central (12%) and others (18%) (Table 3.46 21. Rajasthan.3%) and dairy development (6%) (Table 3.3/Chart 3.4%) were the major purposes for which banks availed of refinance.046. Tamil 61 .83 0. NFS and SHG have 3.95 6057. Ninety per cent of the disbursement to RRBs was in Andhra Pradesh.7%).951.009. Rajasthan.2007-08 1.

Maharashtra.807.00 Disb.229.55 20.57 1.42 12.97 12. Karnataka.046.01 7.60 1111.44 crore and Rs.85 891. Tripura.53 crore.64 1. Kerala.07 1478. An amount of Rs. land development and fisheries showed declining trends. 3.99 1. Cumulative sanction and disbursement by NABARD were Rs. respectively.00 Disb.02 796.636.08 Share(%) 20.535.33. Goa. 3. Eastern: Bihar.2008-09 2.2009-10 2419. Tamil Nadu.73 1.81 100.2007-08 1.87 35.31 9.99 crore was sanctioned and Rs. Delhi and Chandigarh North-Eastern: Assam. Puducherry and Lakshwadeep Islands recorded substantial growth in refinance. Nagaland.65 10.49 7. Rajasthan.29 Share(%) 25.13 crore and total term loan sanctions amounting to Rs. Meghalaya. three RRBs.136. there were 38 on-going projects under co-financing.252.16 7. Jharkhand.11.957.52 crore.00 Northern: Haryana. crore) Region Northern North-Eastern Eastern Central Western Southern Total Disb. The cumulative number of projects sanctioned since 2003 G.134.810.56 40. Arunachal Pradesh. rose to 48 with cumulative total financial outlay (TFO) of Rs. NABARD is the nodal agency for various Capital Investment Subsidy Schemes (CISS) of 62 . Uttar Pradesh and Uttarakhand Western: Gujarat. F.009.298.78 178.526.40 712. eight projects were sanctioned with total financial outlay (TFO) of Rs.47 14. Himachal Pradesh.27 Share(%) 21. As on 31 March 2010.15 1. Punjab.Table 3. The disbursement in Sikkim has been included under this region.4: Region-wise Disbursement (Rs. Dadra and Nagar Haveli and Daman &Diu Southern: Andhra Pradesh.29 Capital Investment Subsidy Schemes Since 2000-01.102. while minor irrigation.79 5967.18 1.53 9.60 crore was disbursed during the year.90 12.26 3.87 139. Mizoram.96 100. one SCB and an NBFC for supporting agricultural projects under co-financing arrangement.02 1.28 Co-financing NABARD has executed MoU with 16 commercial banks.70 100. West Bengal and A&N Islands Central: Madhya Pradesh.62.35 crore. Manipur. J&K.74 4.26. Chhattisgarh. During the year.91 10.45 174. Orissa.26 49.

56 (0.38) 20.89 crore was released to 21 states and five UTs.73) 489. 573 projects with TFO of Rs.70 (2. standardisation and quality certification of produce.11) 1747.50 (1. a.41 (4. of Projects 60 963 2009-10 TFO for the year 129.27 (100. 63 . 1.51) 10.18) 949.95 (30. product deterioration and distress sales. Back-ended subsidy varies for each scheme.85 (5.86) 2.01 (1.92 Bank Loan 77. GoI.28 (1. The number of projects sanctioned under Cold Storages.45 (0.44 Cumulative as on 31.30 (0.34) 201.82 Subsidy 30.59 3798.99 (28.89 crore was released.50 (17.91) 54. During 2009-10. crore) Sl. b. of Projects 1851 17556 TFO 2900.35 (6.00) 2008-09 545.28 65. Figures in parentheses indicate percentage to total.14 (5.33) 12009..73 (4.37) 374. (i) construction of cold storages and onion godowns. (ii) construction of rural godowns. crore) Sector Minor Irrigation Land Development Farm Mechanisation Plantation & Horticulture Poultry Farming / Sheep.13 crore.77 196.87) 581.46) 725.74 221.32) 341.22 (1.67 2504.15 (0.14) 349. It is to be implemented in only such States where APMC Act is amended to allow private participation.190.82 (3.49. Promotion Scheme for Cold Storages. launched in 1999-2000.69) 28.46 (0.03.86) 458.5: Sector-wise disbursement (Rs.12 (1.15 (5.56 crore and Rs.79 (2. Facility No.68 (4. Onion Godowns and Rural Godowns (Rs.1. four Schemes were implemented.29 (2. (iii) development/ strengthening of agriculture marketing infrastructure. viz.03 (14. 3.45 * Capacity: Lakh Metric Tonnes . Rural Godowns No.54 (3. aims at establishing/strengthening infrastructure for marketing.58 Bank Loan 1634. Table 3.46) 462. grading.30 The scheme.08 Subsidy 443.03 (24. Cumulatively.31 The scheme in operation since 2004.62 (0.94 (0.29 (100.56 (26.40 (3.26) 3465.97 Cumulative Capacity* 76.81 281.65) 6.04) 6. Goat and Piggery /Animal Husbandry .83 (8. It was to act as a hedge against wide price fluctuations of horticultural produce.79 (25.91) 2706. Agricultural Marketing Infrastructure. aimed at promoting creation of cold storage and scientific storage facilities to prevent heavy post-harvest losses.65 (19.67 (2.28) 605.046.05) 9.70) 6. Onion Godowns and Rural Godowns Scheme are detailed in Table 3.58 (2.86) 2747.23) 1615.84) 77.Table 3.00) 2009-10 496. Onion Godowns and Rural Godowns 3.07) 136.838 units with TFO and bank loans of Rs.535.933.78) 216. with the NER/weaker sections getting a higher quantum under each of the schemes.54 crore were sanctioned and subsidy of Rs.53) 1714.06) 141.43) 999.51) 258.1.94 (9. wastage.56) 298.05) 187.6: Details of Projects under Cold Storages.22 (5.90 crore and bank loans of Rs.39) 25.6.66 (14.56) 151.08 (100. were sanctioned and subsidy of Rs.2010 No.00) grading and standardisation. and (iv) establishment of Agri-clinics and Agri-business Centres (ACABC) by agriculture graduates.27) 2620.Others Fisheries Dairy Development Forestry Storage & Market Yards SGSY NFS SC/ ST-Action Plan SHG Others Total 2007-08 403.02) 3173.52 (0.14) 303.58 578.637. respectively.02) 1514.87 (6.28) 377. Cold Storage & Onion Godowns 2.39 (0.419.283. Grading and Standardisation 3. During the year.

64 lakh units of private shallow tubewells/ dugwells with pumpsets over a period of three years.CISS for Commercial Production of Organic Inputs 3. 3. The GoI has since extended the Scheme for 2009-10.15. An amount of Rs. Till 31 March 2010.67 crore.98 crore and subsidy of Rs. etc.569. s u b s i d y o f Rs. The back-ended subsidy at 45 per cent of the project cost. assess the availability and adequacy of backward and forward linkages.34 The GoI launched the National Project of Organic Farming (NPOF) in 2005 to promote organic farming in the country and is providing subsidy under the capital investment subsidy scheme (CISS) for commercial production of organic inputs like biofertiliser. under Million Shallow Tubewell Programme. an amount of Rs.32 With a view to providing fee-based extension services to farmers and at the same time providing selfemployment avenues to unemployed agricultural graduates.1. is available to the beneficiaries under the scheme. The scheme is to be implemented in all districts of Bihar through commercial banks and RRBs. I.02 crore was released to four RRBs and 13 commercial banks as subsidy under the scheme.28 lakh ha.90 crore were sanctioned. Agri-Clinics and Agri-Business Centres of NABARD. Bihar Ground Water Irrigation Scheme The implementation of Bihar Ground Water 3. Subsidy of Rs.042.89 lakh. is the nodal department for implementation of the scheme with the active support H.61 crore was disbursed for 76 projects involving TFO of Rs.87 crore. to be released by NABARD through the financing banks. utilizing the balance amount of Rs. bank loan of Rs.33 lakh has been released. as on 31 March 2010. vermiculture hatchery and units for composting of fruit and vegetable wastes. As on 31 March 2010. was launched by GoI in 2006-07 to promote the establishment of agri-clinics and agri-business c e n t r e s ( A C A B C s ) . 612 units (Ver mi-hatchery units . GoI. National Project on Organic Farming NPOF . 3. D u r i n g t h e y e a r. e.99 crore and bank loan of Rs.33 Irrigation Scheme (BIGWIS). 30 ISS were conducted by ROs in association with financing banks and nodal Departments of state governments.1. of agricultural land in Bihar by installing 4. d.32.35 Investment and Scheme Specific Studies NABARD conducts Investment Specific Studies (ISS) to identify the problems at the field level in implementation of the schemes. promoted by the Planning Commission. and study repayment performance.36 The refinance disbursements supporting varied economic activities under various types of investments 64 .1.c. The Minor Water Resources Department. a central sector scheme with subsidy component. 280 projects with TFO of Rs. which was closed on 31 March 2007. Bio-fertilizer – 32 and Fruit & Vegetable waste compost unit .5.25 crore has been earmarked as subsidy for bankable projects. to estimate the benefits accruing from the investment.4. The studies covered investments in farm and rural non-farm sectors. Since inception. During 2009-10. Project under agricultural marketing infrastructure Physical Achievements 3. Government of Bihar.497.11) have been sanctioned by NABARD with subsidy of Rs.3.66 crore.20.231.40. banks and other participating agencies. The fund is being operated by both NABARD and NCDC. commenced from 2009-10 to provide irrigation to 9.

SHGs.860 1. During 2009-10. ‘000 ha. ‘000 animals ‘000 animals 000 animals lakh birds 1. Tubewells with pumpsets @ ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 ha. deep tubewells with pumpsets.351 1.882 22. 22.427 164 741 2. 8. pipeline.080 16.882 3.299 1. SC/ST Action Plan. 14.082 73. Other Boats iii.892 1.088 14. but not likely to have been completed.712 2.612 2. Pumpsets on existing wells v.000 tubewells with pumpsets and 33.594 2.020 38.318 413 8.083 1. Non-Farm Sector Miscellaneous$ @ : Includes borewells with pumpsets. 65 . 10.081 1.261 38.886 3.7.217 18.031 38.38 lakh and 2. *** : Includes soil conservation. sericulture. bullock carts. ** : Includes dugwells/ dugwells-cum-borewells. 12.765 75.047 15.671 ETPs : Entire Trans-Planting.702 1.during the year are depicted in Table 3.469 1. wasteland and farm development.323 3.096 1. saline/ alkaline soil.805 5.000 units financed during the year. Tractors ‘000 ‘000 ‘000 ‘000 ha.526 16.029 1. Dugwells with conventional lift iv.440 163 758 2. 5.436 1. appropriate adjustments have been made for units financed upto March 2009.467 1. * : Includes dug-cum-borewells with pumpsets. SRTO. an area of 31. sprinkler.799 5.693 1. Other farm equipments 4. other activities under AH.308 412 8.621 2. $ : Includes bullock pairs. storage/water harvesting tank. 3. 6.724 2.849 3. Others ** Land Development*** Farm Mechanisation i.387 1. channels/ lining/ under ground pipeline.094 73. Table 3.285 1. ACABCs. 2.268 15.703 1.324 3. Under the animal husbandry sector. 7.216 18.330 22.224 ii. ‘000 ‘000 22. lift irrigation. Kisan bikes. under land developement.725 2.094 1.000 ha. contract farming. 11.368 15.724 2.381 418 8. Tractor financing continued to be a major item of investment under farm mechanisation (FM) with 49. Dugwells with pumpsets * iii. It is possible that some of the units have turned out to be infructuous or remained incomplete beyond their normal gestation period. camel carts. Power tillers iii. Units Units Financed (upto 31 March) 2009 1. respectively. Mechanised Boats No. was developed. compost/ manure plants. lakh ETPs ‘000 tonnes No. shallow tubewells/million shallow tubewell programme. Investments No. Minor Irrigation i. pump house. drip.500 1.449 3. etc. camels.789 38.273 2.AEZs. 1. dairy farming and sheep/goat rearing showed an increase of 2.keeping. Plantation & Horticulture Forestry Storage Market Yards Dairy Development Sheep/ Goat Rearing Piggery Poultry Fishery i.758 1.658 18.997 ii. Under minor irrigation (MI) 28.469 1.777 75. etc.010 1.898 3.640 2. vermiculture. No.7: Units Financed and Completed Sr.391 160 733 2. Fresh Water Aquaculture 13. ha. Note: While estimating the completed units.35 crore birds being financed during 2009-10.019 5.711 3.319 2010 Units Completed (upto 31 March) 2009 2010 ii.559 16.919 3. deepening/ renovation of wells.025 5.549 15.476 168 766 2.274 2. The poultry sector showed good growth with 1. soil/water testing.636 3.371 417 8. bee. gobar gas plants.723 2.80 lakh animals. 9.000 pumpsets on existing wells were financed.657 18. Brackish Water Aquaculture iv.

2.42 NABARD was involved as a Technical Support Institution (TSI) in the preparation of Integrated Development Plans under the Backward Regions Grants Fund in 17 districts of five states.39 In order to provide meaningful link between development and credit planning to support agriculture and rural development. marks a watershed in the participatory planning process in the country.1. 100 districts were tagged to specific DDM districts to focus on developmental activities in these districts. Madhya Pradesh. Maharashtra. operational flexibility. District Level Offices 3. L. there was shortfall in GoI/State Government contribution towards floatation of SDDs. which truly reflects the development needs anticipated of the local community.37 On account of implementation of ADWDR Scheme 2008. However.43 Infrastructure plays a key role in stimulating economic growth by raising factor productivity and enhancing quality of life through provision of necessary amenities. in respect of five SCARDBs. b. K. Rescheduling/Postponement of Principal Amount Repayment as a guide in credit planning exercise and infrastructure development for 2010-11. Credit Planning Potential Linked Credit Plans d. etc. 1995-96. The sector-wise credit flow projections captured in the PLPs were utilised for arriving at the credit flow target for agriculture and priority sector. c. wider allIndia coverage.41 Three new District Development Managers’ offices were opened.14 crore by Chhattisgarh SCARDB was also postponed. social focus. 3. Tripura and Uttar Pradesh. On account of natural calamity. community’s involvement in planning. Kerala.. RIDF was created with an initial allocation of Rs.38 SCARDBs receive contribution from Central and State Debentures (SDD). State credit seminars were organised for discussion with various stake holders for bridging the infrastructure gaps and facilitating targeted credit flow. during the year. Rural Infrastructure Development Fund(RIDF) was created in NABARD as a follow-up to the announcement made in the Union Budget. repayment of principal amount of Rs. 66 . NABARD prepared Potential Linked Credit Plans (PLP) for 623 districts that served Rural Infrastructure Development 3.30 crore by Haryana SCARDB was rescheduled.J. repayment of Rs.000 crore with the objective of providing term loans at concessional rates to state governments for financing rural infrastructure projects. Orissa and Punjab. RIDF Scheme with its localised approach. taking the total number of DDM offices to 395. Himachal Pradesh. designing. viz.40 State Focus Papers presenting a comprehensive picture of potential available in various sectors in the rural areas along with critical infrastructure gaps to be filled and linkage support to be provided by line departments/banks were prepared by Regional Offices based on PLPs. The respective state governments/ SCARDBs were advised by NABARD to take necessary steps in this regard. a. managing and execution of works.. Reckoning the imperative need for creation of economic and social infrastructure on sustainable basis. State Focus Paper 3. 3. Jharkhand. In addition. Integrated District Plans 3. Andhra Pradesh.. Shortfall in Contribution to Floatation of Special Development Debentures Governments for Special Development 3. viz.

and annual allocations since 1995-96. The cumulative number of projects rose to 4.806 involving loan amount of Rs. the implementation phase for projects is spread over 3-5 years.03. RIDF XV . soil conservation. a separate window was introduced in 2006-07 for funding rural roads component of Bharat Nirman Programme. public health D. reclamation of water logged areas.1. Eligible Activities: 3. 6. 39. The loans are provided at 95 per cent of project cost for all states. infrastructure for rural education.629.1.000 crore. NABARD provides funds on ‘reimbursement basis’.18. The total allocation for RIDF. i. The tranche-wise position of sanctions is given in Chart 3.50 crore and above is five years. riverine fisheries. (ii) 3.48 Rural Connectivity includes rural roads & rural bridges and loans for these sectors are provided at 90 per cent of project cost for NER & Hill States and at 80 per cent for all other states.4. The loans for the above sectors are provided at 90 per cent of project cost for NE & Hill States and at 85 per cent for all other states. specially for girls and “Pay & Use” toilets in rural areas.5 percentage points.500 crore. rural creditdeposit (CD) ratio and past performance. With its successful implementation. including agriculture.18. grading/certifying mechanisms. accumulated since RIDF I till RIDF XV (2009-10).49 NABARD allocates the Fund among the States as ‘Nor mative Allocation’ based on geographical area. testing laboratories. animal husbandry. except for the initial 20 per cent of the project cost (30 per cent in NER and Sikkim) given as ‘mobilisation advance’. stood at Rs. godowns. rural infrastructure index. the RIDF has had an aggregate corpus of Rs. The maximum phasing in the case of major and medium irrigation projects and other stand-alone projects involving RIDF loan of Rs.45 The broad categories of projects covered under RIDF are: (i) Agriculture and allied sectors: 3. 3. construction of toilet blocks in existing schools. construction of anganwadi centres. as on 31 March 2010.50 During the year 2009-10 (RIDF-XV). i. desalination plants in coastal areas. 3. C. Funding (iii) Rural Connectivity: 3.02. forest development. to the extent of their respective shortfalls in lending to agriculture under the priority sector.82 crore. agriculture and horticulture farms. depends upon the pace at which it implements the projects. flood protection.e. Additionally.500 crore. infrastructure for IT in rural areas. seed.46 These include irrigation projects.44 The funds for RIDF were sourced in the form of deposits from scheduled commercial banks. however. 3. 67 . The quantum of actual drawal of funds by a state government. market yards.47 Social Sectors: Social sector includes drinking water.A. fishing harbour/jetties. Each drawal under the sanctioned projects is considered as a separate loan. and setting up of KVIC industrial estates/centres. plantation and horticulture.5 per cent to NABARD. till 2009-10.015 projects were sanctioned involving aggregate loan amount of Rs.15. hydel projects (upto 10 MW). with allocation of Rs. marketing infrastructure.00. village knowledge centres. thus. watershed. cold storages.Terms and Conditions population. Generally. The rate of interest payable by NABARD on deposits from commercial banks under RIDF-XV is the Bank Rate (at present 6 per cent) while the State Governments have to pay Bank Rate plus 0. B. RIDF Operations Sanctions institutions. A state government’s borrowings under RIDF is also governed by Article 293(3) of the Constitution under which GoI determines its borrowing powers from the market and financial institutions during a year.718 crore.1.

54 crore.6.08 0. state governments had a total pool of projects of Rs.19 6. social sector projects 16 per cent.39 4581.53 As per phasing of the projects.74 crore.887. Rs.16 100 . rural roads accounted for 29 per cent.83 11534.03. crore) Sector No.18.27 103718 68 .17 13610. Additionally.85 12.3. The position of year-wise disbursements under RIDF excluding NRRDA under Bharat Nirman is given in Chart 3.15 11.87 100.52 15.8).82 215718 13450 73046 73142 750 26700 402806 33341.68.9. Cumulative sanctions and disbursements are given in Table 3.78 33747.91 149. bridges 15 per cent and agri-related 12 per cent (Table 3.5.1.52 Disbursements during 2009-10 under the ongoing tranches amounted to Rs. Cumulative sanctions according to sectors are indicated in Chart 3.00 Irrigation Rural Bridge Rural Roads Social Sector Power Agri – Related Sector Total 16697 1110 4907 14816 12 1473 39015 4145.13 18.12 1.00 No projects RIDF I to XV (Cumulative) Share in total amount(%) 53.387. an amount of Rs.34 18.718 crore as on 31 March 2010.96 11.55 3.439.6.91 9.76 15629.54 crore.59 1855.54 13.76 1980.77 100. State wise utilisation 3. under various tranches (RIDF I to XV).03 3.25 29.8: Sector wise Projects and Amounts Sanctioned (As on 31 March 2010) (Rs.90 2513.18. Disbursements iii.500 crore under Bharat Nirman). (excluding Rs.16 0. The cumulative disbursement as on 31 March 2010 stood at Rs.27 2383.63 100 . ii.51 Of the total amount sanctioned during the year.19 9503. of projects RIDF XV(2009-10) Share in total amount(%) 42.500 crore was disbursed to the National Rural Roads Development Agency (NRRDA).32 16.12.00 Amount Share in total amount(%) 26.12 32. irrigation projects 27 per cent.00 Amount Share in total amount(%) 32.80 2. The state-wise analysis of ratio of 3.97 0.58 37. taking the total disbursements during the year to Table 3.

19 9503. based on periodical returns and (b) field visits by its officers from HO/ RO and the consultants.55 Disbursement under tranches RIDF I to IX have been closed. The ongoing dialogue with state governments after such monitoring studies and the feedback from field visits help in removing identified bottlenecks in implementation and in sorting out issues related to smooth flow of funds. v. The primary responsibility.12. is given in Table 3.22 7979. was Rs. respectively.670 projects through 69 .47 crore and Rs. Comparatively slow pace of actual utilisation of loans under RIDF in some states was mainly due to procedural delays in administrative and technical approvals by state governments in land acquisitions.399. iv.28 5753.2.03. NABARD carried out monitoring of 6. The state governments are progressively rationalising these procedures. It has proved to be an effective tool for monitoring and steering the progress of RIDF and ensuring timely completion of projects. NABARD undertakes monitoring of RIDF projects by exception. Tranche-wise 3. chaired by the Chief Secretary/Finance Secretary of the State.718.94 74.30 1301.869 crore.94 10317.33 77.725.96 crore as deposits from commercial banks in 2009-10.56 7724.5.240.53 31419.34 77.439. the cumulative deposits received under RIDF stood at Rs.669.41 68.62 crore.74 % of disbursement* 76.3. An amount of Rs. statutory clearances and tendering process. Deposits/Repayments 3.00 Phased Sanctions 28629.54 The amount of loan sanctioned and disbursed to states in the NER aggregated Rs. The details of disbursements under the ongoing tranches RIDF X to XV are given in Table 3.96 disbursements to the sanctions.83 45281.59.38 Amount Disbursed 21986. rests with state governments.56 With the receipt of Rs.Table 3.597. During the year.553 crore was received from state governments towards repayment of RIDF loans during 2009-10. The total RIDF loan outstanding. The details of year/Tranche wise disbursements against deposits received are given in Table 3. E. however. Amount Sanctioned 33341.80 84. meets every quarter to review the progress of RIDF projects. as on 31 March 2010.82. through (a) desk reviews.750. 3. mid-course design changes or cost escalations. A High Powered Committee on RIDF.27 1.38 crore.10.9: Cumulative Sanctions and Disbursements under various Sectors (I – XV) (As on 31 March 2010) (Rs.35 1.95 13610.46 85. 3.11.07 37256.16.57 Monitoring of RIDF Projects Monitoring of RIDF projects is an important responsibility of NABARD to ensure timely completion of the projects and high quality of the assets created.76 1980. crore) Sector Irrigation Rural Roads & Bridges Social Sector Power Agriculture Related Total * with respect to amount phased.48 79. as per approved phasing.

83 3502.27 2014.000 14.62 46.24 70 .18 7627.000 Sanctioned 7. Sanctions 11749.38 2621.58 98477. X XI XII XIII XIV XV Total Allocation 8.52 6259.70 77.12 2096.411.79 255.44 1702.82 2433.95 2082.94 1815.63 1058.40 5585.45 2750.19 85597.39 8747.05 Disbursed 6.75 24.326.32 3925.85 1076.47 103718. Table 3.98 21. major observations/ issues were taken up with the Finance Departments of state governments and the implementing Departments for improving the pace and quality of project execution.26 83.31 78.12 457.07 1282.60 5546.82 69.93 59.81 1569.49 82095.629.15 91.51 73.18 2950.671.98 65689.671.99 91.42 5555.03 4927.98 107.53 160.65 80. crore) Tranche No.21 61.24 79.33 2617.652.60 271.60 6.40 200.12 8210.10 7567.83 3251.94 261.705.14 6331.29 6280.935.59 79.13 100.10: Utilisation Percentage of RIDF (I TO XV) Funds (As on 31 March 2010) (Rs.04 Disbursement (%) 84.11 83.02 15.35 38. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 State Andhra Pradesh Bihar Chhattisgarh Goa Gujarat Harayana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Orissa Puducherry Punjab Rajasthan Tamil Nadu Uttar Pradesh Uttarakhand West Bengal Total NE States & Sikkim 22 Arunachal Pradesh 23 Assam 24 Manipur 25 Meghalaya 26 Mizoram 27 Nagaland 28 Sikkim 29 Tripura Total for NE Region & Sikkim Grand Total * with respect to amount phased.13 86.42 1195.88 261.19 599.45 1910.No.34 1784.72 133.446.708.38 69.33 89.600.45 105.64 14.55 1500.50 6633.75 1714.46 78.96 field visits.000 66.474.82 74.75 3834.64 8.35 6.96 7194.53 734.89 1499.10 2691.86 278.11: Tranche-wise sanctions and disbursements .02 3825.26 57.10 140.69 4734.33 77.74 Utilisation (%)* 80.29 328.54 79.19 396.02 4626.489.00 Phasing 10089.000 8.000 14.604.32 54.51 3.96 51.280.59 4197.86 74.13 23.66 7531.83 5240.67 Phased 7.68 6424.26 3.64 79.71 8.30 215.19 64.33 10.15 12.59 4870.43 2914.76 627.69 83.18 4643.68 1988.38 Drawn 8090.02 76.000 12.30 499. crore) Sl.81 3491.102.43 7.72 445.12 6282.65 1846.10 6222.68 101.90 81.Ongoing tranches – RIDF X to XV (As on 31 March 2010) (Rs.71 8.80 7.000 10.320.89 1163.15 12705.62 68439.58 5311.281.73 154.00 90.58 101.33 10.15 2502.Table 3.44 2480.42 2777.33 198.03 88.411.320.22 3156.71 67.61 3849.76 916.16 114.20 75. Based on the feedback.26 53.01 169.

80 7280.38 Disbursements 1760.12: Year/Tranche-wise Disbursements and Deposits received under RIDF (As on 31 March 2010) (Rs.recurring and non-recurring (Table 3.95 7834. Rural Haats.14 ). Bargarh district (Orissa) recorded the highest growth in the number of new enterprises at 57 per cent.50 2482. awareness programmes.43 (0. District Rural Industries Project (DRIP) 3.43 4000.37 6966.13 & Table 3. 17 per cent in Medak district a.08 4873. besides creating critical infrastructure.95) * 82725.08 1009.00 3054. crore) Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Total Deposits 350. coordination efforts as also other RNFS promotional interventions like REDP. The findings of the studies are summarised in the following paragraphs. increased credit-off take and created additional employment opportunities .00 3474.15 3626.42) * 12157.87 2397. facilitated expansion of the production base in rural areas.35 6500.00) * 7369.85 5953.F.00 6652.04 1337.32 6222. delving into the interventions such as training of officers of primary Table 3.23 7774.18 4228.96 4070.38 Disbursements 387.64 (4500.15 6421.53 3051.46 (4438.54 4073.09 2158.87 3176. Evaluation Studies of Rural NonFarm Sector (RNFS) Programmes: Check Dam under RIDF 3. evaluating its rural non-farm sector (RNFS) promotional programmes.59 5148.63 2653.64 (7500.01 (3718. to understand the implementation of the project.60 Six studies were conducted on DRIP.34 1087.30 1007.50 4916.77 5188.95 2306. Cluster Development Programmes.61 3415.78 (6647.42 3922.09 4316.49 3817.00) * 8033..69 4353.59 During the last two years.37 4103.00 1042.85 3790.47 6092.58 The RIDF projects.58 (0.95 2453.74 Tranche I II III IV V VI VII VIII IX X XI XII * XIII * XIV * XV * Total Deposits 1586. lending institutions (PLIs).00) * 12387.35 6604. G.51 4000. ARWIND.03 1313.88 4080.74 * figures in parentheses indicate deposits under Bharat Nirman Programme 71 .00 7600.08 6420.02 1412.66 6442.48 6489.60 4000.00 86939.85 4052.56 2225. Impact of RIDF 3.64 3590.00 2308.50 3945.43) * 12677.00) * 86939. NABARD conducted 20 in-house studies.12 2277.54 (6500.00) * 10458.00 82725. while it was 39 per cent in Udaipur (Rajasthan). etc.72 3857.

Rural Drinking Water Supply 390. organised production and marketing.61 Two Studies were conducted on CDP covering Sisal Fibre cluster in Chamarajanagar district. The study on woodcraft cluster revealed that the number of artisans in the cluster increased about six times after the intervention. The training helped augment the family income by about 67 per cent. On an average. Ground level credit flow (GLC) also showed increase across the districts with Bargarh district recording an annual increase of 55 per cent followed by Medak district (35 per cent). The growth rates ranged between 17 and 18 per cent in Ambala (Haryana) and Udaipur (Rajasthan) districts. Rural Entrepreneurship Development Programme (REDP) 3. recommended creation of wider awareness about DRIP. coordinated the cluster activities.62 Seven studies conducted on REDP revealed that the overall success rate in setting up of new enterprises worked out to 34 per cent and 58 per cent when wage 72 .22315 lakh Units per year Additional benefits created 156. like shoe-making units and spice mills (Udaipur district). Cluster Development Programme (CDP) to establish sisal-based micro-enterprises.Table 3. therefore.94 lakh mandays 32. which yielded a return of 44 per cent on fixed costs.613 Jobs (Andhra Pradesh).25 lakh mandays 16. Primary & Secondary Schools C.637 Mts. The study recommended ensuring fibre availability. Health Centres B.35 lakh persons 24.83. the sample artisans produced 192 idols per annum realising an income of Rs. Particulars 1 2 3 4 5 Irrigation potential Rural Bridges Rural Roads Recurring Employment Non.45 MW Hydel Power Generation & Saving of T & D Losses . highlighting the environmental benefits of sisal fibre products compared to cheaper plastic substitutes and encouraging individual initiatives c. The study reports on Medak and Udaipur districts.49 lakh mandays 180.04 lakh students 907.210.1.77 lakh persons 92. The RNFS units in the study districts were profitable in general.337 Kms.13: Impact of RIDF . barring a few.53 lakh hectares 5.16. 3. Rural road under RIDF b. with a fairly good rate of return of above 15 per cent in most cases.022. The NGO acting as the Cluster Development Agency (CDA). 3. Karnataka and Woodcraft cluster in Villupuram district.643.No.153 per idol.Rural Infrastructure and Employment Generation S.recurring employment Irrigation Rural Roads & Rural Bridges Others 6 Power Sector (Hydel Power & System Improvement) 7 Social Sector A. 81.04. 150 artisans were trained to make value added premium products. Tamil Nadu. In the Sisal Fibre cluster.

990 9.829 745. The programme yielded more than 50 per cent return on the investment in all the states studied.97 1.179.24 248.974.050 5.859 121.078 140.84 136.898 1. are reported below: i.04 1.322.36 1.899.35 682.990 Potential Bridges (m) 42.191 641 965 2 389 6 3.814 44.356 791 200 204 1.81 524.Table 3.340 71.571.39 273.806.201 135.438.589 287.80 206.833 27.80 7.555 367.471 32.12 2.90 48.21 907.659 1.586 4.633 583. IRRI RR & RB (lakh Mandays) 4.000 1.77 1. (Rs.59 1.522.521.949 2.763 85. crore) 2. Commodity Specific Studies 3.712 2.380 304.17 2.53 810.91 29.74 374.27 579.906.513 604 272.068 13.885 225 1.98 325.41 737.325 419.11.98 1.163 11.450 561.862 1.643.14 751.41 33.219 528 125 3 8 1.922 22.747 555.976 3.59 2.528.01 649.392 1.589 5.668 258.158 Recurring Employment (Numbers) 1.42 2.061 264.015 4.579 42.210 9.53 34.37 346.263 167 24 1.647 8.18 371. Pulses 3.209 1.38 1.152.888 57.52 321.25 16.54 2.68 48.389.605 258 19.957 102.638.954 4.22.022.255 31. The average annual net incremental income worked out to Rs.49 employment too was considered.885 21.10 196.192.652 348 697 1.23 298.067 2.88 1.28 789.75 617.118 674.613 Non-recurring Emp.60 1.700 1.31 62.075 22.225.14: Statewise Benefits EstimatedUnder RIDF I to XV (As on 31 March 2010) State IRRI (ha) Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattishgarh Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttarakhand UT of Puducherry West Bengal Total 1.013.36 1.379 2.67 1.51 138.22 256.167 23.49 500.616 623.637 Roads (km) 29.991 40.605 316.058 824.229.17 477.63 A series of commodity specific studies on pulses. The highest incremental income was observed in Andhra Pradesh and West Bengal (Rs.473 42.400 230. being the prime source of protein in Indian diet and the poor man’s only source of protein.437 1.083 467 2.75 81.72 15.070 6.633.49 298.15 830.505 2.927 323.60 271.149 205 55.40 233.321.679 5.54 30. medicinal and aromatic plants were conducted.968 8.80 443. The studies suggested enrichment of the course material with success stories.39 117.476 1.355.23 702.010 749 2.91 2.75 169. Banks and SHGs emerged as major sources of credit.343 12.18.547 152.005 12.900 80.017.463 402.692 9.17 Others 33.72 1.378 5.979.27 310.215 664.33 41.03 2.47 947.194 4.908 90.355 36.94 5.10 45.78 126.031 77 1.847 23.92 649.652.663 per trainee.403 11.681 172.617.210.241.43 1.039 29.625 130.960 28.927 6.931.94 342.337 Value Prodn.25 43.363 5.106 146. The findings of the studies.29 694.05 757.600) and minimum in Orissa (Rs.171 37.173 61.492.04 151.447 180. H.33 143.619 706 5.164 2.292) due to differences in the level of operation of the units set up by the trainees. completed during the year 2009-10.17 24.476 13.041 8.521 17.678 749.473 13.934.61 34. have assumed topical importance in recent years due to rising 73 .677 45.188 1.516.03 3.68 359.560.82 578.21 11.973 2.64 Pulses.116.235 281.70 426.69 8.493 486.251 8.912 1.92 526.829 1.990 8.48 1.321 7.241 15.988 15.193.855 39.

The gross value of production from the sale of menthol crystals/flakes worked out to Rs. The studies emphasised expansion of area. cultivation on marginal lands.8.625 in the case of Jalaun/Jhansi districts as compared to Rs. inclusive of the imputed cost of family labour at the sample farmer level.882). India produces around 78 per cent of the world’s mint oil production followed by China (10 per cent).1.662. Badaun.50 kg per acre for both cuttings. Focus on improving the yield of pulses has been recommended. Uttar Pradesh. supplementing micro-nutrients.207 (Jhansi/ Jalaun). The yield of sucker planted mentha was slightly higher as compared to transplanted mentha in Moradabad district and the average yield worked out to 37. Orissa and Uttar Pradesh covering 285 farmers.14. The higher cost in the former was due to longer duration of crop as the farmers in Jalaun/Jhansi were undertaking two cuttings of the crop whereas in Moradabad it was grown as single cutting crop. The net income per acre from production of mentha worked out to Rs. Andhra Pradesh growers earned a net income per acre of Rs. The input-output ratio was 1:1. accounts for 80 per cent of the crop area under mentha (2. frequent attack of pests and diseases.18. absence of fertilizer use. while it was Rs.27 lakh ha) and the major mentha producing districts in the State. The studies brought out issues of stagnant area and low productivity at 622 kg per hectare (1908 kg/ha in Canada/ USA) to the fore. In respect of gram.099 (Moradabad) and Rs. respectively.7.136 in Karnataka and Rs.4.400. infirmities in the delivery of inputs especially fertilizer. while it was Rs. Medicinal and Aromatic Plants 3.prices. Mung in Karnataka gave a net income of Rs. The study report highlighted the rising cost of irrigation in Sambhal block (Moradabad district) due to depleting ground water levels. the capacity utilisation being 60-70 per cent.495) and UP (Rs.800 and the net income realised from processing plant per month worked out to Rs.6 kg of oil per acre. Tur farmers of Andhra Pradesh obtained highest net income of Rs.913 per acre followed by Karnataka (Rs. Dal processing units could break-even on milling 1648 MT of raw pulses.169 per acre followed by Orissa (Rs.824 in Andhra Pradesh. Financial rate of return of the processing units is 25 per cent.77. Haryana.5.698 and Rs. to enhance production of pulses. The net value addition per MT of raw pulses has been worked out as Rs. scarcity of distillation units during the harvesting season. Brazil (8 per cent) and United States (4 per cent).26. lack of market research and market-related information for the farmers. and mint oil in particular and unhealthy trading practises by traders in the mint oil market. Barabanki. Low yields were attributed to lack of high-yielding and short duration varieties. food flavouring. where the study was conducted during 2008-09. account for more than 90 per cent of total area under mentha. Five studies were conducted in the states of Andhra Pradesh. use of micro-irrigation. viz. the dilution in quality control measures in trading of essential oil.702 i.6.765 in Moradabad district. coupled with expansion in demand has resulted in higher dependence on imports and substantial rise in domestic prices.11. Total processing cost and sales proceeds for milling one MT of pulses was Rs.25. Per acre net income of urad in Karnataka was Rs. confectionery. cosmetics..24. Stagnant production of around 14 million tonnes.2. 7 per cent of the operating cost.163. among others. beverages and related industries. inadequate irrigation.87.075. aroma compound menthol is used in pharmaceuticals. The study suggests directing R & D efforts towards development of mechanical harvesters which can prove effective in obtaining optimum yield ii. is utilised for extracting mentha oil and its principal 74 . especially in rabi .706).1. Sitapur and Jalaun. The per acre cost of cultivation of mentha reported by sample beneficiaries was Rs.5.06.e. 39 processing units and 57 traders and a few commission agents. lack of extension services and poor infrastructure and slow transfer of technology.65 Mentha. development of multiple disease/ pest resistance varieties. in general.10. India is the largest producer as well as the largest importer of pulses. an aromatic herb of temperate region. The study also pointed out to the absence of any kind of regulation in the market.282 in Haryana. development of high-yielding and short-duration varieties. The yield per acre in the case of Jalaun/Jhansi districts was 56. Karnataka.16. Moradabad.

The study clearly indicated that the Management Information System (MIS) for monitoring the progress of the Scheme was fraught with shortcomings. Assam. 3.10.3 per cent as against the yield level by control farmers. manure. KCC lapsed after a period of three years. sanctioned the maximum number of rural godowns in Gujarat. irrigation. RRBs and CBs. The cost of cultivation per hectare was higher by 7. Punjab. Sample KCC holders across the states had cultivated paddy by availing of crop credit from different agencies. Uttar Padesh & West Bengal was conducted covering 1. cards were renewed after a period of three years.13.500 to Rs. Although Gujarat tops the list with the maximum number of rural godowns. followed by West Bengal and Maharashtra. respectively.e. the maximum number of godowns were in Gujarat. the average capacity of godowns in Gujarat was the lowest at 271.67 A study covering 14 states. (iii) in certain cases.. The average capacity of the godowns was maximum in Uttar Pradesh at 5748.13. Gujarat.500 to Rs. working capital for allied & NFS activitites and consumption loan in the ratio of 4:2:1. It was found that the overall productivity of paddy grown by KCC holders was higher by 13.68 The gross value of output for sample KCC holders per hectare was 13.25. Orissa.876 KCC holders from 178 bank branches from co-operatives. but such cards were shown to be freshly issued.100 to Rs. but such cards were still counted as active cards. The report identified four types of shortcomings in the MIS (i) family members having the same operational holding had been issued multiple cards. Maharashtra. (ii) the same person was issued multiple KCC by various banks.7 metric tonnes in the country.606 godowns under NABARD component. i. The average bank 75 . Haryana.9 metric tonnes) and Andhra Pradesh (3951..02 crore. The per hectare yield of KCC holders was 18 to 34 quintals as against the per hectare yield of 14 to 26 quintals of control farmers. It was Rs. (ii) Rural Godowns 3. Rajasthan. labour. The corresponding per hectare cost of cultivation of paddy was Rs. followed by the CBs. Of the 16.. viz. The increase in yield was partly attributed to the credit access through KCC. Government and co-operative sectors while co-operatives were supported for renovation of existing godowns.000.37 lakh metric tonnes were sanctioned under the scheme. pesticide. Kerala.11.31. involving a subsidy of Rs. etc. an all-India study of Kisan Credit Card (KCC) scheme in 14 states and a study of rural godown scheme in Gujarat were completed. bring about more transparency in the mint oil futures market. Karnataka. 20.from harvests. Madhya Pradesh. Andhra Pradesh.17.69 The study suggested that KCC penetration could I.7 metric tonnes).500 per hectare for KCC farmers. Himachal Pradesh. by KCC farmers were the contributing factors for higher yield. developing risk mitigation strategies. Other studies 3.6 per cent for KCC holders on be further improved in terms of extending loans such as crop loan. The co-operative banks.6 per cent higher for paddy cultivated by KCC farmers as compared to the control farmers.2 metric tonnes followed by Haryana (5731. The higher use of inputs such as fertilizer. 3.66 During 2009-10.543. (i) Study on KCC 3.500 and Rs. Average productivity per hectare of paddy taken up by KCC holders was compared with the average yield level of control farmers.70 By 31 March 2009. non-KCC holders. The impact of formal credit in the form of KCC loan on paddy productivity was attempted. apart from other measures.14.393 rural godowns with a capacity of 238. as against Rs. which may include insurance to safeguard farmers.500 to Rs. New projects were sanctioned to private. (iv) in certain cases.500 per hectare for control farmers. The study further suggested that there was need to adopt “mission mode” approach to make KCC into a farmers’ friendly efficient instrument for effective credit delivery system accompanied by appropriate institutional mechanism. account of higher doses of various inputs compared to the control farmers for paddy crop.

71 While the guidelines prescribe that the subsidy may be kept in the Subsidy Reserve Fund Account in the name of borrower.2.2 per cent and in individual godowns. castor. tobacco. subsidy should be adjusted after liquidation of bank loan. 3.2. some banks had been allowing the repayment of loan and pre-closure of accounts before the expiry of 5 years. paddy and bajra. private banks had fixed 7-year repayment with half yearly instalments. Co-operative society godowns reached the break-even point at 25.6 per cent of the available storage space.72 Capacity utilisation in co-operative society godowns was 67. Similarly.5 lakh recurring employment had been generated in sample districts. Due to the addition of the rural godowns. while the individual godowns reached it at 53. The repayment in respect of all godowns was regular.loan sanctioned by commercial banks. cumin. it was 68. some of the banks had kept the subsidy in fixed deposit in the name of the borrower.00 lakh. and public sector commercial banks had fixed the repayment period of 5 years with yearly instalment. 3.8 per cent. but it should not be done before 5 years from the date of disbursement of the first instalment of the term loan. But. Rs.3 per cent. an addition of 3. RRBs and co-operative banks was Rs.4 lakh non-recurring and 1. While co-operative banks. 76 .6. respectively. The major crops stored in godowns were cotton. mustard.89 lakh and Rs.59 lakh. as per the guidelines.

243 48. borrowings of State Co-operative Agriculture and Rural Development Banks (SCARDBs) and Primary Co-operative Agriculture and Rural Development Banks (PCARDBs) as on 31 March 2009.IV Capacity Building of Client Institutions The financial and managerial soundness of rural credit institutions are critical to a robust rural financial delivery system. 4. decreased marginally by 3. # : Data for SCB and DCCB in Bihar and DCCB in Jharkhand repeated from 2007-08. respectively. over the previous year. the borrowings of SCBs and DCCBs decreased by 7 per cent and 6 per cent. respectively.613 2008 94.984 25.25 per cent. Table 4. P : Data provisional.8 per cent. While there was only a marginal increase in membership of PACS over the previous year.4 In the Long-Term Co-operative Credit Structure 4.1: Growth of PACS (As on 31 March) (Rs.2) as on 31 March 2008 and (LTCCS). 4.906 26. crore) Particulars Number Membership (lakh) Borrowing Members (lakh) Owned Funds Deposits Borrowings Loans issued Source: NAFSCOB. Loans issued by SCBs increased significantly by 58 per cent and those of DCCBs decreased by 3. which play a very crucial role in financial intermediation in agriculture and rural development. Loans outstanding of SCBs and DCCBs decreased marginally by 3.258 479 11.crore) Particulars Number Share Capital Reserves Deposits Borrowings Loans Issued Loans Outstanding SCB 2008 2009 P# 31 1497 9898 57404 22513 59205 50208 31 1570 10104 71272 20970 93833 48471 DCCB 2008 2009 P# 370 6030 22575 110178 31724 93270 101458 370 6409 23255 127779 29858 90105 100198 2007 97.919 58.484 43. respectively.3 per cent and 0. Rural Co-operative Credit Institutions Performance 31 March 2009 indicate that while their deposits increased by 24 per cent and 16 per cent.3 An analysis of the financial positions of the SCBs and DCCBs (Table 4.66 crore constituting 58 per cent of total.315 794 10. The Regional Rural Banks (RRB) and co-operative banks.686 * : Data provisional. respectively. a.2 per cent.323 766 11.039 23.449 47.2 per cent over the previous year (Table 4. NABARD endeavours to strengthen the capacity of these institutions through various developmental and supervisory initiatives to effectively face such competition. respectively. respectively.848 57.1). Similarly borrowings of PACS also registered only a marginal increase of 2. the borrowing members decreased by 3. over the year. are under increasing pressure from competition from other agencies.950 1.626 1.5 per cent during the period. respectively. over the previous year. 77 .2: Growth of Short-Term Co-operative Banks (As on 31 March) (Rs.1 and 1. Institutional Development A.5 per cent and 1.4 per cent.714 49. Both deposits and loans issued (as on 31 March 2009) also showed marginal increase of only 3.2 The total membership of Primary Agricultural Credit Societies (PACS) during 2008-09 stood at 13. of which borrowing members were 7. over the previous year (Table 4.642 2009* 95.23 crore.224 1. their loans outstanding decreased by 11 and 5 per cent. While loans issued by SCARDB and PCARDB increased by 17 and 16 per cent. Table 4.3).

crore) Year SCB # 389 428 404 DCCB # 5667 6211 5299 SCARDB * 908 1263 1117 PCARDB 2770 3374 3604 PCARDB 2008 697 1025 3409 350 12406 1768 11770 2009 P 697 1514 3444 419 12375 2045 11229 20 2009 P 814 3158 710 15751 2585 16279 2007 2008 2009# Data for 2009 Provisional. ** : The data for SCB and DCCB in Bihar and DCCB in Jharkhand repeated from 2007-08. Pradesh.3: Growth of Long-Term Co-operative Banks (As on 31 March) (Rs. 78 . * : Manipur SCARDB is under orders of liquidation. Himachal Pradesh.4).1. SCARDBs and PCARDBs declined in 2008-09 with a slight increase in respect of SCBs (Table 4. Profits of SCBs in all regions improved. P : Data provisional. Jammu and Kashmir. Western region slipped into loss making. $ : Data for Manipur SCARDB is not available as the same is under orders of liquidation.) Loss Amount SCB 2007-08 31 26 286 5 49 2008-09 31 26 395 5 71 DCCB 2007-08 * 370 261 868 108 926 2008-09 * * 370 320 1611 50 337 SCARDB $ 2007-08 20 9 150 10 426 2008-09 @ 20 11 405 8 150 PCARDB# 2007-08 697 283 210 412 588 2008-09 697 326 206 365 360 * : 1 DCCB in Gujarat was neither in profit nor in loss for the year 2007-08. crore) Particulars Number Share Capital Reserves Deposits Borrowings Loans Issued Loans Outstanding SCARDB 2008 20 1254 2810 670 16293 2208 18392 @ Table 4. West Bengal. Rajasthan. Meghalaya. the overall profits of SCBs increased by 37 per cent over the previous year. Eleven SCARDBs earned an aggregate of profit of Rs. over the previous year. Punjab. While Nagaland and b. 11 SCBs (Chhattisgarh. Maharashtra and Goa) showed declining trend in earning profits over the previous year. Sikkim. Haryana. 50 DCCBs incurred losses to the extent of Rs.Table 4. 4.360 crore (Table 4.6 The aggregate accumulated losses of DCCBs. Manipur and Tamil Nadu) improved their profit. i. but decreased in Northern region (-9%).crore) Agency Year Total (No. while 365 incurred an aggregate loss of Rs. A&N. While 12 SCBs (Delhi. # : Data for the year 2008-09 of SCB and DCCB in Bihar and Jharkhand repeated from 2008.395 crore and the remaining 5 SCBs were in loss (Rs.5: Accumulated Losses (As on 31 March) (Rs. Andhra . 326 earned an aggregate profit of Rs.7 During 2008-09. Kerala SCB in southern region and Arunachal SCB in North Eastern region had incurred losses in the previous year and these SCBs turned around in 2009-10. # : The data for 04 PCARDB in Kerala and 2 in West Bengal for 2008-09 and 2 PCARDB in West Bengal for 2007-08 is not available. The Southern region improved remarkably in reporting profits. Karnataka.5 Working Results Profitability During 2008-09. Orissa. while eight incurred an aggregate loss of Rs. of which AP SCB had earned during the year 9.71 crore). MP UP.) Profit Amount In Loss (No. While 320 out of 370 DCCBs earned overall profit of Rs. Bihar SCB maintained a status quo. while the North Eastern region transformed itself into profit making (Table 4. Uttarakhand. resulting in an aggregate profit of Rs.206 crore. Chandigarh.4 times profit of the previous year. as on 31 March 2009. 26 out of 31 SCBs were in profit aggregating Rs. Out of 697 PCARDBs.324 crore.150 crore.4: Working Results of Co-operative Banks (Rs.6). @ : Manipur SCARDB is under orders of liquidation. Table 4.337 crore. Mizoram.611 crore. 4.5).) In Profit (No.405 crore. 4.

Table 4.6: Region-wise Working Results of SCB (As on 31 March) (Rs. crore) Region Profit/Loss (+) / (-) 2007-08 Central Northern Eastern Western Southern North-Eastern All-India 65.12 116.22 32.15 31.72 10.10 -18.89 236.42 2008-09 69.17 105.39 43.29 -33.99 125.77 14.50 324.13 2007-08 820.01 321.99 533.52 2352.32 1718.23 444.60 6190.67 NPA 2008-09 607.16 347.03 505.64 2268.67 1599.99 435.01 5763.50 NPA as % to loans outstanding 2007-08 12.50 2.87 10.78 19.75 11.85 41.26 12.33 2008-09 10.01 3.12 10.32 20.42 11.34 37.39 11.89 Recovery (%) (As on 30 June) 2007-08 2008-09 82.94 97.70 82.23 67.54 87.66 41.54 84.59 92.99 97.29 86.82 83.26 95.03 49.23 91.79

Data for the year 2009 is provisional. Data for SCB in Bihar repeated from the year 2007-08.

Gujarat SCBs, which were in profit in 2007-08, slipped to loss during 2008-09, SCBs in Assam, Tripura and Puducherry reduced their losses during 2008-09. 4.8 In the case of DCCB, during 2008-09 the number

decrease in profits by 19.4 per cent. Thus, there has been overall improvement in all regions. Similarly, percentage of NPA to loans outstanding reduced in all regions, except in Northern and Western regions, where the same had increased marginally (Table 4.7). 4.9 In the LT structure, the loss-making SCARDBs

of profit making DCCBs increased across all regions. The extent of profits and number of profit making DCCBs increased in Chhattisgarh, MP, UP, Uttarakhand, Haryana, Himachal Pradesh, Punjab, Rajasthan, West Bengal, Gujarat, Maharashtra, Andhra Pradesh and Karnataka while the DCCBs in Bihar, Jharkhand and Kerala remained static and DCCB in Tamil Nadu showed had reduced their losses by 65 per cent over the previous year. At aggregate level, SCARDB earned profit of Rs.255 crore and PCARDBs incurred a loss of Rs.154 crore during 2008-09. The number of profit-making PCARDBs declined from 412 in 2007-08 to 369 in 2009-10.

Table 4.7: Region-wise Working Results of DCCB (As on 31 March)
(Rs. crore) Region 2007-08* 2008-09# Total NPA NPA % to Loans Outstanding DCCB No. Central Northern Eastern Western Southern All-India * 104 73 64 49 80 370 Profit No. 77 57 45 29 53 261 Amt. 179.53 116.60 51.50 180.80 339.70 868.13 No. 27 16 19 19 27 108 Loss Amt. 188.37 57.95 105.61 337.78 236.60 926.31 DCCB Profit Loss Amt. 43.48 27.67 75.00 133.39 77.70 3481.67 1383.01 1465.06 6940.32 5483.56 3357.10 1806.62 1136.44 6501.97 5127.01 27.85 6.83 16.01 22.32 16.69 27.73 9.58 15.91 22.53 15.55 17.89 46.94 65.18 52.97 44.30 63.80 50.62 73.63 59.17 62.96 66.37 2008 2009 2008 2009 2008 Recovery % (As on 30 June) 2009

No. No. 104 73 64 49 80 90 69 48 41 72

Amt. No. 293.83 148.47 53.42 631.25 484.07 14 4 16 8 8 50

370 320 1611.03

337.04 18753.62 17929.15 18.48

55.61 72.17

: Data for 2009 provisional.

* : 1 DCCB in Gujarat was neither in profit nor in loss for the year 2007-08 and 2008-09. # : The data for DCCB in Bihar and Jharkhand repeated from 2007-08.

79

4.10 During the year 2008-09, SCARDBs in Central and Eastern region moved from loss in 2007-08 to profit. While the profits of SCARDB in Rajasthan, West Bengal and Gujarat increased, it decreased in the state of Haryana, Punjab and Tamil Nadu. The loss-making SCARDBs turned around in the states of Chhattisgarh, Uttar Pradesh, Himachal Pradesh and Puducherry during the year 2008-09. The SCARDBs in Assam incurred further losses, while those in Bihar, Orissa, Maharashtra, Jammu and Kashmir and Tripura reduced their losses. The SCARDBs in Karnataka and MP, which were in profit earlier, incurred huge losses during the year 2008-09. While PCARDBs in Central, Western and Eastern regions increased their profits, the PCARDBs in Northern region incurred further losses and those in eastern, central, western and southern regions reduced their losses during 2008-09 (Table 4.8). While the profits of profit making PCARDBs in Madhya Pradesh, Orissa and Rajasthan increased, the lossmaking PCARDBs in Chhattisgarh, Haryana and Karnataka added to their losses substantially. While those loss-making PCARDBs in Orissa, Punjab, Kerala, Maharashtra, Rajasthan and Tamil Nadu reduced their losses over the previous year, a lone PCARDB in Himachal Pradesh slipped into losses during the year.

funds at 5.17 per cent, resulting in a financial margin of 2.23 per cent (excluding miscellaneous income of 0.58 per cent). The average transaction cost and risk cost of SCBs during the year worked out to be 1.36 per cent and 0.88 per cent respectively. SCBs as a group earned a positive net margin of 0.57 per cent (including miscelleanous income) during 2008-09 compared to a net margin of 0.95 per cent during the previous year. 4.12 In the case of DCCBs, the overall return on

working funds was 7.85 per cent while the cost of funds was 5.09 per cent, yielding a financial margin of 2.76 per cent (excluding miscellaneous income of 1.68 per cent). The average transaction and risk cost as percentages to working funds were 2.15 and 1.33 per cent, respectively, during 2008-09. The DCCBs as a group earned gross and net margins of 2.29 per cent and 0.96 per cent (including miscelleanous income), respectively. 4.13 During the year 2008-09, out of 19 SCARDBs, 13 had positive net margins while the remaining six had negative net margins. Out of reporting PCARDB in 12 states, only four states had positive net margins.

iii. ii. Costs and Margins
4.14

Non-Performing Assets (Gross) and Recovery Performance
At the aggregate level, the percentage of gross

4.11 During 2008-09, SCBs as a group earned an overall return of 7.40 per cent on funds, with the cost of

NPA to total loans and advances outstanding in respect

Table 4.8: Region-wise Working Results of SCARDB (As on 31 March) (Rs. crore) Regions No. of Branches 2009 Central Eastern North Eastern Northern Southern Western All India Total 349 138 35 85 56 181 844 Profit/Loss 2008 -171.11 -26.20 -1.04 48.88 57.05 -183.51 -275.93 2009 207.89 0.32 -2.58 68.84 -41.41 -22.19 255.25 Impaired Assets 2008 2754.76 444.67 18.21 723.64 924.31 1569.08 6434.67 2009 1724.69 359.00 16.34 759.77 696.12 1381.81 4937.73 NPA % 2008 47.86 45.71 58.61 12.99 22.53 80.08 34.99 2009 39.21 39.17 51.96 13.86 18.97 77.57 30.33 Recovery % to demand 2008 69.48 33.70 70.98 58.47 47.55 9.97 49.94 2009 35.31 28.31 53.41 64.92 51.27 20.06 40.00

Manipur SCARDB is defunct.

80

of both SCBs and DCCBs decreased to 11.9 and 17.9 per cent, as on 31 March 2009, from 12.3 and 18.5 per cent as on 31 March 2008, respectively (Tables 4.6 and 4.7). In absolute terms, NPAs were estimated to be Rs.5,736.50 crore and Rs.17,929.15 crore for SCBs and DCCBs as on 31 March 2009, registering a decline of 7 and 4 per cent, respectively. The percentage of NPAs to total loans and advances outstanding in the case of SCARDBs and PCARDBs decreased to 30.3 and 39.1 per cent as on 31 March 2009, from 35.0 and 43.5 per cent, respectively, during the previous year. The total NPAs of SCARDBs and PCARDBs were estimated to be Rs.4,937.73 crore and Rs.4,392.95 crore, showing a decline of 23 and 14 per cent, respectively (Tables 4.9 and 4.10). 4.15 As on 31 March 2009 vis-à-vis the all-India average for SCB, NPA was the lowest in Northern region (3.12%), and was low in Eastern (10.32%) and Central (10.01%) regions, while it was the highest in Northeastern region (37.39%), followed by Western (20.42%), and Southern (11.34%) regions. SCBs in Arunachal Pradesh, Bihar, Assam, Manipur, Tripura, Nagaland, Jammu and Kashmir, Kerala and Maharashtra continued to have high levels of NPAs. In the case of DCCBs, as compared to the all-India average, NPAs of DCCBs was the highest in the central region(27.73%), while it was low for Northern (9.58%) southern (15.55%) and Eastern

Table 4.10: Composition of NPAs of Co-operative Banks (As on 31 March 2009)P (Rs.in crore) Assets Classification Sub-Standard Doubtful Loss Assets Total NPA Provisions made SCB 1678.39 3843.06 242.05 DCCB* SCARDB# PCARDB 8029.83 7221.29 2678.03 2937.45 1965.28 35.00 4937.73 1217.68 1536.02 2574.16 1793.13 25.67 4392.96 790.13 892.45

5763.50 17929.15 3308.85 11462.72

Provisions required 2882.87 10225.06

P : Data Provisional. # : Manipur SCARDB is under orders of liquidation. * : Data for SCB and DCCB in Bihar and Jharkhand repeated from 2007-08.

(15.91%) regions. While Haryana, Himachal Pradesh, Orissa and Punjab had low levels of NPAs, DCCBs in Andhra Pradesh, Chhattisgarh, Gujarat, Jammu and Kashmir, Jharkhand, Madhya Pradesh, Maharashtra, Kerala, Tamil Nadu and Uttar Pradesh registered high NPA levels. 4.16 As on 30 June 2009, the average loan recovery

of SCBs and DCCBs improved marginally to 92 and 72 per cent from 85 and 56 per cent, respectively, as on 30 June 2008 (Table 4.11). In absolute terms, loan recovery of SCBs improved by 28.20 per cent from Rs.26,433.54 crore to Rs.33,893.73 crore. At the DCCBs level, it increased by 22.4 per cent from

Table 4.9: Region-wise Working Results of PCARDB (As on 31 March) (Rs. crore)
2008 Profit No. Central Eastern Northern Southern Western All-India 17 8 95 162 1 283 Amt. 0.97 1.99 132.66 72.14 2.02 209.78 No. 33 60 50 241 28 412 Loss Amt. 120.11 38.28 56.87 102.69 269.79 587.73 Profit No. 23 39 98 162 4 326 Amt. 24.06 33.57 72.37 69.95 6.08 206.03 2009 * Loss No. 27 29 47 237 25 365 Amt. 69.02 22.44 76.23 60.65 131.88 360.20 2008 744.21 201.19 2163.82 1239.49 767.93 5116.64 2009 561.08 129.91 1849.88 1237.88 614.21 4392.95 Impaired Assets NPA % to Loans Outstanding 2008 53.39 26.97 40.20 37.08 84.90 43.47 2009 47.55 19.75 34.73 36.14 95.91 39.12 Recovery % to Demand 2008 56.81 75.19 41.19 46.84 4.10 42.15 2009 37.64 73.72 39.14 50.15 7.97 40.3

* : Data for 2009 provisional.

81

3. While SCBs in Orissa.Table 4.30 per cent from 49. West Bengal. Rs. as on 30 June 2009. declined to 40. # : Data for SCB and DCCB in the states Bihar and Jharkhand repeated from previous year. Data as on 30 June 2008 for one DCCB in Rajasthan and one DCCB in Punjab are not available. The SCBs in Puducherry and Assam recorded impressive recovery of 91 and 69 per cent compared to 73 and 55 per cent.12: Frequency Distribution of Co-operative Banks According to Loan Recovery (As on 30 June) (Number) Recovery (%) 2008 <40 >40 to < 60 >60 to < 80 >80 Total 3 6 11 11 31 SCB (No. Gujarat and Bihar maintained their recovery positions of the previous year. Uttar Pradesh. Rajasthan.11).39.57. PCARDBs in Haryana. Madhya Pradesh. Orissa.2. Meghalaya. Bihar. Data as on 30 June 2009 for SCB and DCCB in Bihar and Jharkhand repeated from previous year. Assam. Jammu and Kashmir. Mizoram.94 and 42. loan recovery of SCARDBs and PCARDBs declined to Rs. from Rs. Delhi. Andhra Pradesh.10 crore.860. Jammu and K ashmir. Punjab and Kerala.12 to 4. Manipur. PCARDBs in West Bengal improved their recovery performance considerably. While loan recovery of SCARDBs in Puducherry and Rajasthan improved considerably.) 2009 3 2 7 18 31 2008 131 86 74 55 346 DCCB (No. While PCARDBs in Chhattisgarh. while poor recovery performance was observed in PCARDBs in Maharashtra. however.544.326. Kerala. it was a marginal improvement in the case of Arunachal SCB. Himachal Pradesh.842. Maharashtra and Goa improved their recovery performance. Madhya Pradesh. Low recovery performance and declining trend were displayed by SCARDBs in Assam. Himachal Pradesh. Puducherry. Kerala and Tamil Nadu were on the path of decline.15 per cent. K arnataka.5.47 crore. over the previous year.) 2009 69 85 115 101 370 2008 9 2 6 2 19 SCARDB (No. respectively. 82 . recorded in the previous year.40 crore to Rs.17 The average loan recovery of SCARDBs and PCARDBs.77 crore. Har yana.367. Punjab. Table 4.18 The frequency distribution of loan recovery of banks in the co-operative structure are presented in Table 4. Punjab and Karnataka showed improvement in recovery. Data Provisional for the year 2009 * : Manipur SCARDB is under orders of liquidation. Tamil Nadu and Uttar Pradesh. Gujarat and Haryana. Manipur SCARDB is under orders of liquidation. showed a decline in recovery.190. The SCBs in Madhya Pradesh. Sikkim. UT of Chandigarh. The SCBs in Chhattisgarh. it was only marginal in the case of SCARDBs in Chhattisgarh.81 crore and Rs.14. respectively as on 30 June 2008 (Table 4.44 crore and Rs. 4.) 2008 382 173 98 43 696 2009 337 205 113 42 697 Data provisional for the year 2009. Rajasthan.3 4. Tamil Nadu SCB sustained the previous year recovery performance of 100 per cent and the same position was maintained during the year. A&N Islands.11: Percentage of Recovery of loans to Demand (As on 30 June) Agency SCB # DCCB # SCARDB* PCARDB 2007 86 71 44 52 2008 85 56 50 42 2009 92 72 40 40. In absolute terms. Nagaland.3. as on 30 June 2009. as on 30 June 2008. Kerala.00 and 40. Orissa. Tripura. Karnataka.) 2009 10 4 2 3 19 PCARDB (No. as on 30 June 2009. Uttarakhand.

Tamil Nadu (5) (115) Himachal Pradesh (1). Gujarat (2). Uttarakhand (5). Rajasthan (4). Uttarakhand.Mizoram. Bihar (10). West Bengal (3).19 NABARD. Maharashtra (13). Jharkhand (7).14: Frequency Distribution of States/UTs According to Levels of Loan Recovery of SCARDBs and PCARDBs (As on 30 June 2009) Recovery < 40 % SCARDBs Madhya Pradesh. Madhya Pradesh (5). West Bengal (14). Orissa (4). Chhattisgarh (6). Jammu and Kashmir >60 and <80% Chandigarh.West Bengal (2). West Bengal (5). Uttarakhand (4). Bihar (1). Uttar Pradesh (17). West Bengal (3). Punjab(17). Orissa. Kerala (10) and Tamil Nadu (8) (205) Punjab (20). Tripura Delhi. Karnataka (5). Supersession of Elected Boards of the covenants of MoU executed by the state governments under the GoI revival package for STCCS stipulates that the co-operative banks should be managed by duly elected Boards of Directors. Maharashtra (6). West Bengal. Andhra Pradesh (1). Uttar Pradesh (16). West Bengal (1). Andhra Pradesh (21). Andaman and Nicobar. Gujarat. Andhra Pradesh. One Table 4. Karnataka (41) and Tamil Nadu (170) (337) > 40 % and < 60% Haryana (3). Madhya Pradesh (13). Himachal Pradesh and Rajasthan(4) Haryana. Karnataka (2). Maharashtra (3). Orissa. Punjab. the 4.Chhattisgarh (1).Assam. Bihar (6). Karnataka (96). Orissa (5).West Bengal (6). Maharashtra (9).Table 4. Karnataka. Jammu and Kashmir (1). Karnataka (13). Gujarat (2). Jharkhand (1). West Bengal (7). Punjab (26) Rajasthan (12). 83 . Assam. Madhya Pradesh (1). Orissa (28). Tamil Nadu. >40 and <60% Chhattisgarh. Orissa (2). Karnataka. Uttar Pradesh (5). Chhattisgarh (3). Bihar. Chhattisgarh (5). as a matter of policy. Despite this. Kerala. Tamil Nadu (1). Bihar (5). continues to emphasise the need for co-operative banks to be managed by duly elected Boards of Management. Sikkim. Himachal Pradesh (1). Himachal Pradesh (1) Punjab (38). Chhattisgarh (3). Tamil Nadu (3) (85) Haryana (9). Haryana. Gujarat (7). Karnataka (2) and Kerala (6) (42) 697 > 60% and <80% > 80% Total 19* * Data in respect of Manipur SCARDB is not available. Karnataka (38). Orissa (2). Tamil Nadu. Bihar. Uttar Pradesh (12). Jammu & Kashmir. (102) Haryana (9). Orissa (4). Puducherry. (10) Chhattisgarh. Manipur and Megahlaya. Punjab (3). Madhya Pradesh (3). Rajasthan (22). Karnataka (1). Madhya Pradesh. Uttarakhand (1). West Bengal and Maharashtra 31 >80% Total 370 DCCB-wise data for Bihar and Jharkhand are repeated from previous year c. Himachal Pradesh. Rajasthan (15). Kerala and Tripura(4) Puducherry (1) PCARDBs Haryana (16). Gujarat (7). Nagaland. Rajasthan (10). Gujarat and Maharashtra. Punjab. Madhya Pradesh (14). Madhya Pradesh (24). Kerala (2). Uttar Pradesh. Maharashtra (29). Rajasthan. Jammu and Kashmir (2). Kerala (30) (113) Punjab (5). Tamil Nadu (14) (101) Arunachal Pradesh. Kerala (9). Madhya Pradesh (16). Rajasthan (2). Orissa (14).13: Frequency Distribution of States/ UTs According to Level of Loan Recovery of SCBs and DCCBs (As on 30 June 2009) Recovery (%) <40 SCB DCCB Haryana (1). Uttar Pradesh. Kerala (3). Goa. Orissa (4).

As on 31 March 2009. duly elected Boards were superseded in 9 SCBs and 127 DCCBs in the ST Structure. During 2009-10. Development Action Plans / Memorandum of Understanding 4. was launched in 2007-08 to facilitate changes in the organisational structure. Based on the recommendations of the Working Group.81. It was implemented in three phases. transfer and promotion policy to all SCBs and DCCBs for consideration and adoption by them. and in 9 SCARDBs and in 265 PCARDBs in the LT Structure (Table 4. recruitment. methodology and objective of ODIs are now more focused towards enabling financial inclusion and sustainable viability.) Boards under Supersession (No. The balance in the Fund as on 31 March 2010. The fourth phase of DAP/MoU for both ST and LT structures is for the period April 2007 to March 2012.74 crore and Rs. Organisation Development Initiatives (ODIs) 4. d.3. Rs.15: Elected Boards under Supersession (As on 31 March 2009) Particulars Total Institutions (No. for preparation of road map for implementation. BIRD and other Training Establishments of NABARD and select CCBs. The SCBs would constitute a separate State Level Steering Group in each State. 1994-95 to 1999-2000 (Phase I).23 e. The DAP are regularly monitored and reviewed during State Level Task Force (SLTF)/DLMRC meetings. representatives of NABARD. respectively. f. 4.) Boards under Supersession (%) * Data provisional SCB* 31 9 29 DCCB* SCARDB* PCARDB* 370 127 34 20 9 45 697 265 38 84 . skills. implementing and monitoring of DAP As on 31 March 2009.78 crore disbursed (including sanctions of previous years). monitoring and review of the recommendations of the Working Group. Co-operation Department of State Governments. 4. g.91. a recast of Organisation Development Initiative (ODI) for co-operatives.51 crore. and 9 SCARDBs had executed “DAP/MoU” (Phase IV) with state governments and NABARD. stood at Rs. Separate guidelines were issued to SCBs in NER. PACS were advised for the first time to prepare viability action plans under the guidance of DCCBs and to enter into MoUs with the respective DCCBs in the third phase. 21 SCBs .125 crore. As on 31 March 2010. (i) Other Developments Human Resource Policy for Short-Term Cooperative Credit Structure A Working Group (Chairman: Shri S. 2000-01 to 2003-04 (Phase II) and 2004-05 to 2006-07 (Phase III). cumulative sanctions and disbursements under CDF were Rs.15). ten BRAMHA (Phase I-9.20 The process of preparing institution specific Development Action Plans (DAP) and execution of Memorandum of Understanding (MoU) began in 1994-95.21 The Co-operative Development Fund (CDF) was broad based during the year after a comprehensive review of various existing schemes of assistance. The ROs of NABARD would conduct a one-day workshop for the benefit of officials of SCBs. 11 schemes have been put into operation for strengthening the co-operatives. sanctioned and Rs. Phase II-1) and 2 ODI (Phase I & II) were conducted. NABARD) was constituted to formulate a comprehensive human resource policy for the STCCS. At present. Business Revitalisation and Managing Human Aspirations (BRAMHA).practice of superseding elected Boards continued in some states.3. The CDF is replenished annually through appropriations from NABARD’s surplus. The policy changes in Phase IV aim at repositioning NABARD. comprising HR professionals. staff composition. NABARD issued guidelines on staffing. Co-operative Development Fund Executive Director. During the year.22 The design.K. strategic planning and shared values vis-à-vis the wider external environment to enable an organisation to fulfil its mission. RBI and RCS as external facilitators in planning. Mitra.76 crore was Table 4. NAFSCOB.

Legal Reforms 4. So far. Executive Director. An amount of Rs. twenty-five States (covering 96 per cent of the STCCS in the country).CCBs. the GoI in November 2008.26 Financial assistance is provided both for cleansing of balance sheets of STCCS (as on 31 March 2004) and capital infusion to ensure a minimum Capital to Risk-Weighted Assets Ratio (CRAR) of 7 per cent. The funding of the package is shared by the GoI. Prakash Bakshi. Eligibility of PACS is determined on their recovery position as on 30 June 2004.7. With this in view. followed by CCBs and then SCBs. Department of Co-operation of respective State Governments for familiarising with the Working Group’s recommendations and facilitating implementation. maintenance of hardware/ software upgradation. it has become imperative to introduce advanced technology to stimulate the working and functions of co-operatives. The draft amendments . based on recommendations of the Task Force appointed by it for making the STCCS a well-managed and vibrant medium to serve the credit needs of rural India. etc. (c) suggest a road map for different categories of co-operative banks with reference to available infrastructure and operational costs and (d) to design an implementable plan for bank specific computerisation and operationalisation aspects such as funding. subject to legal and institutional reforms.24 In the wake of Revival Package for strengthening co-operative credit structure at grass-roots level and growing competitive banking environment. State Governments and the STCCS. self-reliant and efficient functioning and (c) initiating measures to improve the quality of management. to arrive at the precise amount of losses after factoring in prudential provisioning norms and the sharing pattern. democratic. The report of the Working Group is expected to be finalised shortly. computerisation requirements in CCBs and SCBs to remain competitive by 2012 and beyond based on their business growth.80 crore as their share. (b) introduction of legal and institutional reforms essential for their 85 ii. h. Capitalisation of ineligible PACS would take place by settling their dues to the higher tier. while the State Governments have released Rs. Package for Short-Term Rural Cooperative Credit Structure 4.530 PACS out of 95. training. Special Audit and Release of Funds 4.25 The Government of India (GoI) announced a Revival Package in 2006 for the STCCS.972. The Working Group. through cleansing of balance sheet.764 PACS in fourteen states. The special audits of STCCS.22 crore has been released till 31 March 2010 by NABARD as GoI share for recapitalisation of 49. Bottom up approach is adopted with financial assistance provided to PACS first. a Working Group has been constituted under the chairmanship of Dr. The first meeting of the Working Group was held during the year. including Sikkim. RCS.755. fourteen States have amended their CSAs. apart from giving a comprehensive solution to the co-operatives. (b) assess the gap in computerisation vis-à-vis the above expectation. have executed the MoU with GoI and NABARD for implementing the revival package. Keeping in view the financial health of the institutions in the NER.626 PACS across 25 States. announced a special dispensation for the STCCS in NER. as on 31 March 2004. based on origin of losses and existing commitments. will focus on the following areas : (a) Assess the status of front and back-office i. The integrated package envisages (a) provision of liberal financial assistance to bring the system to an acceptable level of health.27 The participating states are required to amend their Co-operative Societies Acts (CSAs) for securing the democratic character and autonomy of co-operatives and for their regulatory control by RBI. So far. with the State Government having to decide the future set-up of ineligible PACS. The special audit of CCB has been completed in twelve states and is in progress in the remaining States. NABARD. (ii) Working Group for Computerisation in SCBs/ DCCBs 4. is complete in 79.

the STCCS has been enabled to become member driven and autonomous. A. training has been imparted to 226 master trainers from sixteen States.219 elected Board Members of PACS from eleven States. 4. as opposed to departmental auditors earlier. Ministry of Finance. the rules and bye-laws of the societies are being revised by the states. training has been imparted to 72. who in turn have trained 1. Once operationalisation of CAS/MIS is complete and strengthening of capacities to manually maintain the new system is achieved.764 PACS have been fully recapitalised. Training modules along with training material in vernacular. minimise misappropriation/frauds and bring in transparency. loan products. As on 31 March 2010. computerisation of CAS/MIS would commence.28 The Common Accounting System (CAS) and Management Information System (MIS) formulated for PACS are being put in place to standardise accounting systems and decision-making process. The statutory audits of CCBs and SCBs are being conducted by Chartered Accountants. Government of India to review the need for a separate package for Revival of LTCCS. Books of accounts. Till date. iv. Training on CAS/MIS has also been initiated. With the amendment of the CSAs.471 bank supervisors/ departmental auditors. are proposed to be launched in the next financial year. Departmental Auditors and Supervisors of co-operative banks and Board of Directors of PACS. A five-day module for branch managers of CCBs for providing hand-holding support to PACS on a 86 vi. Addl. CCB and SCB and branch managers and CEOs of CCBs. affording them freedom in all financial and internal administrative matters. As on 31 March 2010. 49. IAS. have been printed and distributed in 11 States. GoI had earlier considered a separate Revival Package for the Long-Term Co-operative Credit Structure (LTCCS). as per the CAS.31 Based on the report of the Task Force (II) under the Chairmanship of Prof.29 The Package lays emphasis on training and capacity building of Board Members and functionaries of STCCS. Revival of Long-Term Rural Co-operative Credit Structure 4. elaborate Trainers’ Manual and Guide have been developed for Secretaries of PACS. keeping in view the special conditions in the region.619 PACS functionaries and 3.127 Secretaries of PACS from fourteen States. PACS have started preparing Business Development Plans for prudent funds utilisation and for diversification of business activities. continuous basis and a Business Development programme for PACS in North Eastern States. Vaidyanathan. . C. Common Accounting System and Management Information System Impact of the Revival Package 4. HRD Initiatives 4. housekeeping and accounting (CAS and MIS). training on CAS/MIS has been provided to 61. Secretary (FS).proposed by the remaining eleven States have been vetted by NABARD. Chaturvedi. In addition. business diversification. The appointment of CEOs and Professional Directors on Boards of CCBs as per ‘fit and proper’ criteria specified by the Reserve Bank of India (RBI) will ensure that the STCCS is run in a professional manner. substantially improving their net worth and financial position.30 Implementation of the Revival Package has brought about many positive changes in the functioning of the STCCS institutions. The preparation of balance sheets of PACS as per Common Accounting System (CAS). v. even as previous amendments in three of these States are awaiting Presidential assent. it has now constituted a Task Force under the Chairmanship of Shri G. iii. However. The thrust of training is on resource mobilisation.896 district level trainers. 369 CEOs of CCBs and 1. Based on the amendments. best practices in governance and management and changes in the post reforms scenario.671 Directors of CCBs/SCBs. 99. The Task Force submitted its report to the Government of India on 25 February 2010. generation of information as per prescribed MIS formats and computerisation will ensure uniform accounting procedure. from a panel supplied by NABARD.

as a group. 4. iii. ‘No-Frills’ Accounts 34. through use of smart cards.14 114. Further. for facilitating financial inclusion. with back-ended incentive provided by NABARD from its Financial Inclusion Fund (FIF). ICT solution for Financial Inclusion 4.36 The Committee on Financial Inclusion (Dr.221 villages had been freed of debt from money lenders.16). Regional Rural Banks a. as per RBI guidelines. major areas of Financial Inclusion Year No. a PPP model. The project. RRBs. ii. in lakh) Of total Loan Accounts.795. of Deposit Accounts 669. i.71 Tenants 1. Table 4.20 8.B. RRBs had adopted 17. RRBs opened 263 branches as per information available.66 SSI.000 branches of RRBs in the next two years. Financial Inclusion 4.444. with ICT based solutions. is partly funded by the World Bank.16: Status of Financial Inclusion . RRBs Development Initiatives Amalgamation had opened 474 branches during 2008-09. in the Budget 2007-08. GoI has fixed a target of opening of 2. The total number of accounts covered under both deposits and loans was 1.53 33. the Hon’ble Union Finance Minister.97 171.20 170.04 KCC 82.08 1.37 As envisaged by GoI.RRB (As on 31 March) (No.1.02 935. the total number of RRBs as on 31 March 2010 stood at 82 (46 amalgamated and 36 stand alone). During the year 2009-10. 24.341 villages as on 31 March 2008 and 31 March 2009.17 153.81 No. as on 31 March 2009. iv.106. by amalgamating five stand-alone and three previously amalgamated RRBs.181. artisans. continued and four new amalgamated entities were formed in 2009-10. 4. had announced recapitalisation support to 27 RRBs having negative net worth. Village Adoption and Debt Swap vi.490 and 24.35 As announced in the Union Budget 2007-08. the State Governments and Sponsor Banks concerned.34 RRBs were given the target of adopting at least one village per branch.32 The structural consolidation of RRBs initiated by GoI in September 2005 through amalgamation of Sponsor Bank-wise RRBs in a State. in different regions and client groups in the country.00 GCC 1. fifteen RRBs were identified from fourteen States for an R and D project on Financial Inclusion. Against the target.97 crore stand released to the RRBs by GoI.083 2.88 758.54 81. as on 31 March 2009 (Table 4. taking the cumulative number of branches of all RRBs to 15. respectively. Point of Service (PoS) devices and mobile technology. The entire amount of recapitalisation support of Rs. Capital Infusion 4. As on 31 December 2009.20 lakh.22 SHGs 6. SCC & retail trades 35.03 0. as on 31 March 2007. Branch Expansion Programme 4.95 2006-07 2007-08 2008-09 87 .84 93. respectively.74 33.54 Of which. for financing the indebted farmers to swap the debt taken from money lenders.52 7. With this. have become a strong intermediary for Financial Inclusion in rural areas by opening a large number of “No Frills’ accounts and by financing under General Credit Card (GCC).531 villages had been adopted by the RRBs of which 13. C.33 As part of financial strengthening of RRBs. v. in the ratio of 50:15:35. which would take the total number of RRB branches to 15.35 3. Rangarajan) had identified 256 districts in the country as ‘most excluded’ and had recommended RRBs taking up ten pilot projects with ICT (Information and Communication Technologies) solutions. of Loan Accounts 164. Accordingly.

1 per cent as on 30 June 2009.7.39 Post amalgamation.69 8 55. crore) Particulars No .9 per cent.256.11 2624.85 4.65 65909.550.64 2299.06 2009 86 * 15181 197.55 6 35.) Amount of Losses (B) Net Profit (A – B)$ Accumulated Losses RRB with accumulated losses (No.22 36 80.912.00 3959. Northern and Western region were in profit.55 crore in 2008-09.14 18555.98 31 77.44 crore as compared to Rs.59 55727.9 per cent over the previous year. 88 . While all RRBs in the Eastern.00 3959. compared to 77. Performance Review 4.00 48559. $ : Before Tax.05 12734. as on 31 March 2010 as compared to the previous year.12 3.03 30 79. the number of RRB in the country.17).35. while loans and advances (outstanding) increased by 39.30 6753.39 99093. aggregate reserves of RRB increased significantly (38.51 4 8. The accumulated losses of RRBs have decreased by 30.18). one chaired by Finance Minister and the other by Finance Secretary.54 58984.1. stood at 82. respectively.10. GoI.84 76167.4 per cent. The aggregate reserves of RRBs increased to Rs.19).66 Financial Performance 4.00 2832. The performance of RRBs varied widely across the regions in 2009-10. 6107.13 80 1823.40 Financial results of RRBs for the year 2009-10 Borrowings Investments Loans & Advances (Outstanding) Loans Issued RRB earning Profit (No.97 82 1383.of RRB (No. North-Eastern and Southern regions were incurring losses (Table 4.84 6.90 142980. while deposits and investments increased by 44.37 8610.31 10256. three in Western and ten in the Southern region had registered a recovery performance above the national average (Table 4.58 1328.41 The recovery performance of RRBs was estimated at 79.39 crore while their networth increased to Rs.29 82221. while five had a lower recovery percentage ranging between 40 and 60 per cent.27 38581. as on 31 March 2010.91 1787.44 2542.) Recovery (%) NPAs to loans outstanding (%) Net worth indicate that they have improved their performance with 78 out of 82 RRBs showing pre-tax profit to the extent of Rs.13 * : Number reduced due to amalgamation.8.3 and 56. All RRBs in the Northern.444 branches covering 618 notified districts in twenty-six States and one UT (Puducherry). Table 4.) Share Capital Share Capital Deposit Reserves Deposits 2008 91 * 14761 197.91 crore posted by six RRBs in 2008-09. since January 2007.) Branch Network (No.7%). During the year.13 crore as on 31 March 2010.92 67802. @ : Estimated.38 The performance of RRBs is being reviewed by GoI under the Chairmanship of Union Finance Minister.40 per cent in 2009-10 (Table 4.07 1813. and the decisions taken in the meeting are in turn being reviewed by Finance Secretary. Over a period of three years (2008-10). GoI on half-yearly basis or as and when needed.53 5703.99 2010 @ 82 * 15444 197.75 78 2550.48 11494.17: RRBs: Indicators of Performance (As on 31 March) (Rs.77 7912. The remaining four RRBs incurred losses of Rs.b. Six RRBs in the country had achieved a recovery percentage of above 90. c. Recovery Performance 4.) Amount of Profit (A)$ RRB incurring Losses (No. two such review meetings were held.10 43367.823.51 crore as compared to Rs.9 per cent as on 30 June 2008 (Table 4.46 120189. 4. a few in the Central. with a network of 15. The status of RRBs that can be considered as sustainably viable (with no accumulated losses) is also expected to have improved.2.18). Borrowings also increased by 61.

The Committee had constituted a Subcommittee to analyse the financials of RRBs in detail for assessing capital required to attain 7 per cent CRAR by March 2011 and 9 per cent by March 2012 and for suggesting measures for maintaining sustainability in the long run.24 77.51 92. to examine the financials of RRBs with capital to risk-weighted assets ratio (CRAR) of less than 7 per cent and suggest measures to bring it to at least 9 per cent in a phased manner. K.63 379.57 2.51 68. Manipur (1).81 439.75 81. Orissa (1).67 841.05 856.12 d.40 690. Punjab (3).97 Amount 212.Table 4. Meghalaya (1). crore) Region RRBs (No.89 0.94 2542.16 4. Gujarat (1).75 0.00 4.51 Loss Incurring No. Maharashtra (1). i.07 192.99 82221. Madhya Pradesh (3).96 4. Jharkhand (2). Nagaland (1).75 1.12 20581.51 2009 70. 4.14 78. Reserve Bank of India. Orissa (4). Madhya Pradesh (4).14 439.66 2008 65. The Committee submitted its Report on 30 April 2010.42 3011. Mizoram (1).03 3259. Tripura (1). Other Developments Committee on capitalisation of RRBs for Maintaining Higher CRAR 4.33 0.) Profit Earning No.19 268. Kerala (2). Chakrabarty.10 85. Uttar Pradesh (4). Jammu & Kashmir (1). Madhya Pradesh (1). Assam (1).77 13680.21 3904. Arunachal Pradesh (1). under the Chairmanship of Dr. Gujarat (2).19 13817.7 per cent as on 31 March 2010 (provisional).29 1813.95 75. Data provided for 83 RRBs as on 30 June 2009.19: Frequency Distribution of States According to Levels of Recovery of RRBs (As on 30 June 2009) Recovery (%) < 40 > 40 and < 60 > 60 and < 80 0 5 40 Nil Bihar (1). Karnataka (4).67 836.72 86.1 per cent.44 103. West Bengal (3) >80 38 Andhra Pradesh (2). e. Karnataka (2).11 99. to 3.29 71. Table 4.26 564. Maharashtra (2).18: Region-wise Working Results of RRB (As on 31 March 2010) (Rs.31 26978. States 89 .52 6. Uttarakhand (1). as at 31 March 2009.58 208. of RRB as on 31 March 2010 was 82 after amalgamation. Jammu & Kashmir (1).09 3.40 689.42 The aggregate gross NPAs of all RRBs declined from 4. Bihar (3).62 72.59 Net Profit Accumu lated Losses Loans & Advances O/S NPAs Recovery (%) (As on 30 June 2009) % 6.35 77.85 79.85 81.34 932.63 379.43 The GoI had constituted a Committee in September 2009. 107.62 92.C.27 8. Himachal Pradesh (2). North-Eastern Eastern Northern Central Western Southern All India 8 14 15 23 6 16 82 7 14 15 21 6 15 78 Amt. Uttarakhand (1). Chhattisgarh (3). Uttar Pradesh (1) Andhra Pradesh (3).00 0.01 76. 1 0 0 2 0 1 4 Amt. 3. Puducherry (1) * : No. Tamil Nadu (2). Uttar Pradesh (6). Assam (1). Haryana (2).68 1239.16 2550. Rajasthan (6).00 0. Non-Performing Assets Deputy Governor.09 178.

etc. Handicraft and Audhyogic Sahakari Federation Ltd. (ii) improper application of Income Recognition and Asset Classification (IRAC) norms resulting in inflated profit/reduced losses. 1949.47 The Board of Supervision (BoS) constituted by the Board of Directors of NABARD in 1999. (GUSICA). (iv) deficiencies in sanction. Apex level Co-operative Societies and Federations. Inspection of Banks 4. encompassing inspections (on-site and off-site). (viii) delay in submission of statutory returns and compliance to inspection observations. (xiii) violation of Credit Monitoring Arrangement (CMA)/ exposure norms and (xiv) non-compliance with KYC/ AML standards.. Assam.Supervision of Banks 4. is very comprehensive and holistic. and (xii) major observations 90 . It reviewed: (i) the functioning of SCBs. (vi) ineffective funds management. 1949 (AACS). (xi) incidence of frauds. 1949 (AACS) / RBI Act 1934 and voluntary inspections of all SCARDBs continues to be annual. The periodicity of statutory inspections of all SCBs and those DCCBs and RRBs not complying with minimum capital requirements as stipulated under Banking Regulation Act.46 These concerns were communicated to the banks. (ii) functioning of co-operative credit institutions and RRBs in MP. (vii) inadequate risk management systems. (ix) lack of corporate governance. monitoring. (x) concept paper on the action required in case of slippage in the key parameters for judging the financial position of banks. shortfall in provisions. and with the CEOs for core area compliance and then rated the compliance reports. (iv) functioning of weak DCCBs and RRBs. Board of Supervision A.. Gujarat Rajya Handloom. apart from ensuring conformity with banking regulations and prudential norms. DCCBs and SCARDBs in the previous years. were conducted. (vi) scheduling of amalgamated RRBs (vii) migratory analysis of supervisory rating of SCBs. State Governments and Sponsor Banks for corrective action.44 NABARD inspects SCBs and DCCBs in terms of the powers vested under Section 35(6) of the Banking Regulation Act. the supervisory role of NABARD. (x) weaknesses in internal checks and control system. statutory inspections of 343 banks (30 SCBs. etc. viz. and voluntary inspections of Apex Co-operative Societies/Federations are conducted 4. as brought out by the inspection reports are (i) non-compliance with statutory provisions. (ix) disposal of complaints against supervised banks. Operational Matters a. (v) adherence to CMA norms by the co-operative banks for the year 2008-09. portfolio studies. (iii) high level of NPAs/erosion of assets. b. Some of the supervisory concerns relating to these institutions. appraisal of loans/advances and follow-up of post disbursements. NABARD also conducts voluntary inspection of SCARDBs. the Registrars of Co-operative Societies (RCS). NABARD also held discussions with the Boards of Directors of SCBs/ DCCBs/ RRBs. NABARD also conveyed the supervisory ratings to the top management of the concerned banks. 252 DCCBs and 61 RRBs) and voluntary inspections of 16 SCARDBs and one apex society. and RRBs under Section 35(6) of the Banking Regulation Act. The statutory inspections of those DCCBs and RRBs with positive networth biennially. (xi) the working of RRBs sponsored by some of the commercial banks. (xii) improper valuation of securities and irregularities in investment portfolio. Considering the unique nature of all these institutions. (iii) reports of frauds in the supervised banks. West Bengal and Tamil Nadu. DCCBs and RRBs (viii) compliance of the banks to various important statutory provisions.45 During 2009-10. (v) inadequate financial margin/ high cost of management/ adverse working results. 4. met four times during the year 2009-10. guiding and facilitating functions.

and • Stray/default in CRR/SLR requirement up to two occasions during the last one year may be ignored for the purpose.20: Provision Coverage Ratio for RRBs (As on 31 March 2009) Provision Coverage Ratio (%) <50 50-70 >70 Total Number of RRB 39 29 18 86 91 .3. after they were found complying with Section 42(6)(a)(i) &(ii) of the Act. 1934. which had affected deposits to the extent of Rs.50 All RRBs were from inception.R. two were not complying Box 4. included in the Second Schedule to the RBI Act 1934. During the year. ibid. 1949 (AACS). amalgamated RRBs could become Scheduled Banks only with the approval of RBI.20.780. RBI has since revised the licensing norms for co-operative banks (Box 4. while applications for grant of exemption in respect of 17 banks (one SCB & 16 DCCBs) were under the consideration of RBI/GoI.49 Pursuant to the recommendations of Dr. Health of Supervised Banks Compliance to Minimum Share Capital Requirement 4. • The banks should have complied with the CRR and SLR requirements during the last one year. However. iii. RBI.51 In order to ascertain the PCR of RRBs an exercise was carried out by NABARD based on the available data and the position is given in Table 4.12.noticed during the investment portfolio studies taken up in some of the banks. Act. after conducting statutory inspection. Similarly. ii. Thirty nine amalgamated RRB were included by the RBI in the Second Schedule of the Reserve Bank of India Act. Sixty seven DCCBs and three SCBs were granted exemption from the provisions of Section 11(1) of the Act. With this.52 As on 31 March 2010. 25 DCCBs had improved their financial position and recomplied with the provisions of Section 11(1) of Banking Regulation Act. Consequent upon iv. the number of scheduled RRB stood at 75 as on 31 March 2010. 5 SCBs and 83 DCCBs did not comply with Section 22(3)(a) of the B. 1934. on the basis of recommendations given by NABARD. ibid. Table 4. 1949 (AACS).1 Revised Licensing norms for Co-operative Banks • The banks should have CRAR of 4% and above as per the last inspection report of NABARD.6 crore (22. The total erosion in the value of assets of these 88 non-compliant banks aggregated Rs. Compliance with various Statutory Provisions 4. revision of the licensing norms. Grant of License/Scheduling of Banks 4. 88 banks (5 SCBs and 83 DCCBs) were not complying with the provisions of Section 11(1) of the B.48 During the year 2009-10. upto 31 March 2010. the number of scheduled SCBs remains unchanged at 16. As on 31 March 2010. no SCB was included in the Second Schedule to the Reserve Bank of India Act. Act.00 crore. RBI has issued licenses to eight SCBs and 98 DCCBs during the year. Rakesh Mohan Committee on Financial Sector Assessment (CFSA). as regards their capacity to pay their depositors in full and nine SCBs and 214 DCCBs did not comply with Section 22(3)(b) of the Act.6% of their total deposits) in addition to their entire share capital. out of the 16 scheduled SCBs. as the affairs of these banks were conducted in a manner detrimental to the interests of their depositors.R. Thus. i. ibid.1). c. thus increasing the number of licensed banks to 195 (22 SCBs and 173 DCCBs) as on 31 March 2010.055. 1949 (AACS). RPCD has delegated to its Regional units the powers to grant licenses to co-operative banks. 4. Provision Coverage Ratio (PCR) of RRBs 4. by GoI. As a one-time measure.

as the affairs of these banks were conducted in a manner detrimental to the interests of their depositors. The erosion in the value of assets of the eight RRBs not complying with Section 42 (6)(a)(i) of the Act. a. was issued to all co-operative banks. B.27 per cent of the total deposits held by these banks. and (iv) procedure for valuation of unquoted securities was advised to all ROs. (ii) guidelines were issued to the RCS of all States to implement prudential norms on Asset Classification. three Seminars on Regional Supervision were held for officers of NABARD stationed in DoS. Regional Seminars on Internal Checks and Control Systems were conducted for the Chiefs of Audit and Inspection Departments of both RRBs and co-operative banks. (iii) in keeping with the decision not to grant extension of time for publication of annual accounts of co-operative banks. (iv) guidance note on Credit Risk and Operational Risk Management. Policy Decisions/ Guidelines SCB/CCB 4. (ii) clarifications were issued to ROs in respect of compliance to Section 6 of Banking Regulation Act 1949 (AACS) by co-operative banks.53 During the year. At the instance of Financial Intelligence UnitIndia (FIU-IND). 1934 and 49 complied with Section 42(6)(a)(ii) of the Act ibid. banks were cautioned to utilise the funds judiciously. Other Developments 4. (ii) detailed guidelines on prevention/monitoring of frauds in banks were issued and (iii) as directed by BoS. (ii) a Master circular on Disclosure norms and (iii) revised Long Form Audit Report (LFAR) guidelines.02 crore. DCCBs and RRBs.with Section 42(6)(a)(i) of RBI Act.38 crore as on 31 March 2010 and their deposits were eroded to the extent of Rs. two meetings of Chairmen of RRBs and three state-level meetings of co-operative banks and RRBs were held in MP and UP to review the status of implementations of Anti-Money Laundering (AML)/ Combating Financing of Terrorism (CFT) guidelines. 2008 were issued. (vii) a circular under Section 19 of the Banking Regulation Act 1949 (AACS) . out of 82 RRB.111. (vi) a circular on ‘Fraud Risk Management System in banks . C. and three were not complying with Section 42(6)(a)(ii) of the Act ibid. SCARDBs were advised to expeditiously complete balancing of books and reconciliation of inter-branch accounts. b.5 lakh. Provisioning and Income Recognition in PACS . (i) detailed guidelines on prevention/ monitoring of frauds. the RCS of all states were advised to instruct the PACS to work out CRAR and disclose it as ‘Notes on accounts’ in the balance sheet. and (v) guidelines on Business Continuity Plan (BCP). forming 2.785. (iii) inspection of SCBs.56 To improve the quality and effectiveness of inspections. 70 complied with Section 42(6)(a)(i) of the RBI Act. and (ix) guidelines on Business Continuity Plan (BCP) was also issued to all co-operative banks. c. (i) instructions on prudential norms in respect of advances covered by ADWDR Scheme. (i) detailed guidelines were issued to supervised banks on prevention/monitoring of frauds. D. As on 31 March 2010. were issued. RCS/Director of Audit were impressed upon the need for timely completion of audit.Role of Chairmen/Chief Executive Officers’ was issued. ibid stood at Rs. 1934 in regard to minimum capital requirement of Rs. (v) as CRAR norms have been made applicable to PACS following VC-I recommendations. (iv) in view of the sizeable inflow of funds into the STCCS by way of recapitalisation assistance under Vaidyanathan Committee – I (VC-I) and under the ADWDR Scheme 2008. Supervisory Interventions (i) ROs were advised to take necessary steps in case of non-compliance with the provisions of Section 42(6)(a)(i) of the RBI Act. SCARDBs 4. 1934 by RRBs. (viii) guidance note on Credit Risk Management (CRM) was issued to all SCBs and CCBs. RRBs 4.55 For RRBs.54 In the case of SCARDBs.Restriction on holding of shares. The 92 .

the Bank associated with the study on enhancing the audit capacity in the Co-operative Credit Structure during the year. Investments. conducted training/sensitisation programmes and workshops on Investment Management. NABARD. Asset Liability Management (ALM). HO officials attended meetings of Mutual Evaluation Team from Financial Action Task Force (FATF) held at RBI. 93 . prudential norms and CMA for the auditors and other personnel of SCBs. for the first time. on the initiatives taken on AML/CFT. RO conducted sensitisation workshops on KYC (Know Your Customer)/ AML. also associated with the Conferences of Principal Officers of RRBs and the Trainers’ Training Programme (TTP) on AML convened by the FIU-IND. 4. In addition.Bank associated itself with NABARD-GTZ Rural Financial Institutions Programme (RFIP) review meetings and study on Audit structure in CCS. In this regard. AML. NABARD. CMA (Credit Monitoring Arrangement). Inputs and feedback on many policy issues were obtained from the National Federation of State Cooperative Banks (NAFSCOB) resulting in the preparation of Operational Manual for co-operative banks. Statutory Audit. The Bank also associated with GTZ in preparation of Training Needs Analysis (TNA) of Credit Cooperatives and Corporate Governance during the year. etc. monitoring of frauds. Inter nal Checks and Controls. DCCBs and RRBs. KYC. Frauds. NABARD had forged partnerships with other related agencies. especially in strengthening the internal checks and control systems in the supervised banks. Corporate Governance. through its Regional Offices and Training Establishments.57 For a holistic and more effective approach towards supervision.

and Agriculture Chief Production Secretary. effective Recognising NABARD initiated steps to reposition itself (Box 5. are of crucial any has context of the changes in the economy. Secretary.V Organisation and Management Management aspects for organisation.K. while the Risk Management Committee of the Board (RMCB) met thrice during the year. Principal Secretary. The Audit Committee of the Board (ACB) met four times. and human resources functioning this. Nandakumar. he ceased to be a Director on the Board with effect from 13 December 2009. RBI. C. (i) Shri Pankaj Dwivedi. (f) Shri Alok Nigam. Government of India was appointed as Director with effect from 9 December 2009 vice Shri Amitabh Verma. Chellappa. Financial Commissioner and Principal Secretary. after completing their terms. was appointed as Director with effect from 17 June 2009 vice Dr. Tarneja and Dr. GoI was appointed as a Director w i t h e f f e c t f r o m 2 8 Fe b r u a r y 2 0 1 0 v i c e Shri T. The Bank continues to lay emphasis on capacity building of its staff through honing their skills and developing expertise. composition of the Board of Directors during the year: (a) Dr. (b) Dr.3 The following changes took place in the Director with effect from 3 May 2009 vice Smt. Jharkhand ceased to be a Director on the Board with effect from 13 December 2009 on completion of the tenure of the State Government’s representation on the Board of Directors. Sinha. Ministry of Agriculture. (g) Shri Roshan Lal. appointed as Government Haryana the year. of Agriculture was Department. (d) Shri Prabeer Kumar Basu. Reserve Bank of India was appointed as Director with effect from 26 August 2009 vice Smt. (h) Shri Letkhogin Haokip. Usha Thorat. Shakuntala Jhaku. Agricultural Production Department. Deputy Governor.2 Board of Directors The Board of Directors met five times during Ministry of Finance. Department of Financial Services. On completion of the tenure of the State Government’s representation on the Board of Directors. Anup Kumar Sinha ceased to be Directors on the Board. Shri A. Commissioner (Social Welfare. Iqbal Khandey. Ministry of Rural Development. Agriculture). Rita Sharma . respectively. Secretary. Singh. Chakrabarty. Ram S. 5. (c) Shri Lakshmi Chand and Smt. of India was appointed on the Board with effect from 3 February 2010 vice Dr. Govt. S. with effect from 29 May 2009. met six and seven times. while the Executive Committee and the Sanctioning Committee for Loans under RIDF. P . Government of Manipur was appointed as Director with effect from 19 November 2009 vice Shri O. 5. Deputy Governor. Agriculture Government and of Sugarcane Development. Government of Jammu and Kashmir was appointed as Director with effect from 18 March 2010. 94 .1) in the Management A. Shri Mohd. Shashi Rekha Rajagopalan were re-appointed on the Board with effect from 16 October 2009. (e) Shri B. Nabakishore Singh. Operations). Secretary. K. Joint Secretary (Banking (k) (j) Commissioner Special Government of Andhra Pradesh.

The major concerns flagged were. 5. 2005. (iii) to access adequate and cost effective resources to enable NABARD to provide higher levels of development support to the rural people. 54 officers were deputed for tailorprogrammes Post-Harvest Management.Box 5. (i) to focus on measures to expand and improve the existing financial and developmental interventions of NABARD so as to enhance agricultural credit flow. (iv) to redesign the organizational structure with an implementable time-bound framework to achieve the above. workshops. information systems audit. in terms of networking resources. complying regard to RTI Act. while 424 officers were deputed for 153 off-the-shelf programmes. Considering these aspects as also other relevant factors. for Stress both Management officers and Disaster Management. Further. Lucknow conducted 85 programmes for 1675 Programme made conducted on employees. Goyal. etc. 5. developmental and supervisory roles of NABARD and to explore new and innovative areas. was appointed as Director with effect from 18 March 2010. for a period of 18 months with effect from 03 March 2010.6 officers Training and Skill Upgradation During 2009-10.5 Right to Information The Right to Information (RTI) Cell has been with the statutory requirements with Commissioner. During the year. sub-sectors and regions. Information on NABARD website is updated periodically as required under the Act. and (v) to strengthen rural financial institutions and provide quality training to its staff and improve operational systems. Human Resources Management A. building of capabilities and partnering institutions to bring about integrated rural development across the country more effectively. progressively interfering with performance of its mandated role. (NBSC). financial inspection of NABARD (with reference to its financial position of 31 March 2009) from 27 January 2010 to 26 February 2010. designed to meet their specialised training needs. and to initiate a repositioning of the institution for enabling it to effectively address emerging and future challenges. risk management and treasury management. they also shared their vision regarding the need for NABARD to ‘reposition’ itself. (l) Shri L.. (ii) to analyse the financial. 95 .4 Inspection of NABARD Reserve Bank of India conducted the twelfth O-i-C of Regional Offices were designated as Central Public Information Officer to expedite furnishing of information at the state level in compliance with the provisions of the RTI Act. 5. NABARD’s limitation in raising cost effective resources. seminars and conferences organised by various institutions of repute.1 ‘Repositioning initiative of NABARD’ While addressing the Board of Directors of NABARD on the occasion of its Silver Jubilee Celebrations in 2007. the CGM/ B. National Bank Staff College on various was subjects. While echoing the confidence and goodwill enjoyed by NABARD with its stakeholders. the Board of Directors decided to examine the present and future roles of NABARD.C. The objectives of this initiative are: The “Project Reposition” was approved by the Board of Directors and the Bank has engaged Boston Consulting Group (BCG). Some of the areas covered in these programmes were strategic HRM. the Union Ministers of Finance and Agriculture expressed satisfaction over the functioning of NABARD for the last 25 years. the declining influence of NABARD in expanding credit coverage and directing credit flow to desired sectors. Agricultural Production C. Government of Kerala.

each constituting 2 per cent of the total staff strength. etc.G. He attended the Expert Group meeting on ‘Supportive Financial System and Green Growth for Achieving the Millennium Development Goals in the Asia Pacific Region’ in Bangkok from 14 to 17 February 2010. 120 officers from NABARD and four from Client Institutions were deputed for various overseas training programmes. B. Overseas Training/Visits by Top Management 5. It also conducted prepromotional training programmes for 47 Group ‘B’ staff for promotion to next higher grade in the officers cadre and one pre-retirement programme for five Group ‘B’ and ‘C’ staff.11 Staff Strength The total staff strength of the Bank. 108 officers were appointed during the year. etc. of which 8.9 Under the Incentive Scheme. Mauritius and Israel for study of co-operatives. to encourage staff members to pursue 96 . as on 31 March 2010. in the Regional Workshop of FAO in Manila. Table 5. 34 and 92 were promoted to Grade ’F’. who were deputed to Germany. exposure visits. Managing Director presented a paper in the Forum on Policy and Regulation of Financial Inclusion in Malaysia in May 2009 and also led a delegation of senior officers of NABARD on a study tour on Rural Development and Natural Resources Management in Germany. Dr.5. Lucknow and Zonal Training Centre (ZTC). Philippines in October 2009.2).2: Total Staff Strength Cadre Group ‘A’ Total SC 2833 1065 872 4770 409 134 306 849 Group ‘B’ Group ‘C’ Total of which ST 197 96 105 398 Support for Higher Studies 5. Four officers were granted study leave during the year under the Scheme of enabling officers to pursue higher studies in well-known Universities/Institutions in India and abroad. a. seminars. He also presented a paper on “Review of the Development of micro-Finance Services for Coastal Small-scale Fisheries and Aquaculture in South Asian Countries with Special Attention to Women”. b.7 During 2009-10. He was part of the selection team for appointment of new APRACA Secretary General.1: Promotions Effected During the Year Particulars Total of which SC Officers from Grade ‘B’ to ‘C’ Officers from Grade ‘A’ to ‘B’ Group ‘B’ to officers’ cadre (Grade A) Group ‘C’ to Group ‘B’ Total 242 261 54 4 561 55 42 15 112 ST 37 26 2 65 (NBTC). The staff strength of ex-servicemen and physically challenged employees stood at 101 and 99. Details of other promotions effected are given in Table 5. 51 staff members availed of the facility during the year. consultancy. stood at 4. respectively. respectively. National Bank Training Centre Table 5. Hyderabad conducted 45 training programmes for 663 Group ‘B’ and ‘C’ Staff. K. A total of 695 promotions were effected during the year. courses of relevance through distance education. This included five teams comprising 63 officers. Karmakar. Thailand from 27 to 31 March 2010. The MoU between NABARD and APRACA for setting up of APRACA Centre of Excellence (ACE) in Linkage Banking was signed during this period. Staff Matters Recruitment and Promotion 5.1. ‘E’ and ‘D’.770 of which 849 belonged to Scheduled Castes (18%) and 398 to Scheduled Tribes (8%) (Table 5. introduced in April 2007. 5. The Chairman. Shri Umesh Chandra Sarangi attended the 57 EXCOM of APRACA held in Chiang Mai.8 During the year.10 Out of 120 officers identified for recruitment in Grade ‘A’ in the Rural Development Banking Service of the Bank.

50 lakh were sanctioned to 400 employees. The Board of Directors of NABARD 5. Other benefits extended included granting scholarship to 86 wards of SC/ST employees and providing compassionate appointment to dependents of thirteen deceased employees. Bank.Administrative and Other Matters A.273.4.17 The Festival of thirteenth the Annual Sports and was Cultural held in sanctions of previous year. Hon’ble Vice-Chairman. Other Welfare Measures for the Staff During the year. Nine pre-promotional training programmes for 168 SC/ST staff members were conducted in addition to pre-recruitment training for 1. NABARD as the Chairman. in which 318 staff members from all over India participated. 5. Executive Director. NABOTSAV. including 5. Kamble. 5. Bengaluru between 1 and 5 February 2010.13 The Bank introduced a Grievances Redressal System for the benefit of its staff members from 30 June 2009 with the objective of having an independent mechanism for redressal of grievances of individual officer/employee on the decisions of the Bank on various service matters. National Commission for Scheduled Castes reviewed the Reservation Policy 5. Five meetings of the GRC were held and 13 representations were considered. 97 . Quarterly meetings of the Senior Executives and Chief Liaison Officer with representatives of the Welfare Association of SC/ST employees were held at Head Office (HO) and Regional Office (RO).16 ii. M.165 SC/ST candidates at various centres. Disbursements lakh. 5.59 revived in June 2009 by setting up the Joint Consultative Committee [JCC] at HO comprising representatives Human of the Officers’ Association Department. D. Mitra. housing loans aggregating against the sanctions. Periodic discussions were held between the Management and the All-India National Bank Officers’ Association/All-India NABARD Employees’ Association.4. also reviewed the implementation of Reservation Policy in the Bank. N.19 NABARD Employees’ Group Gratuity Trust was set up during the year with Shri S.610. Prof. and A an Grievances Appellate Redressal Committee [GRC] Committee have been set up in this regard. during its meeting held on 23 November 2009.15 issued by GoI on reservation for SC/ST employees in recruitment and promotions.K. A two-day workshop on implementation of Reservation Policy was conducted for the benefit of staff members attached to various administrative units. and for Resources Management discussing issues of common interest in HR areas. amounted to Rs. B.18 The Central Complaints Committee in HO and in of RO sexual functioned harassment effectively of women for at C. Industrial Relations implemented by the Bank. Welfare Measures for SC/ST Employees The Bank continued to adhere to instructions Committees prevention workplace. i. Transparency / Consultative Approach Grievances Redressal System 5. 5.14 Joint Consultation Scheme for Officer Staff The Joint Consultation Scheme (JCS) was Rs.12 Industrial relations in the Bank continued to be harmonious during the year. The first meeting of the JCC took place on 18 January 2010.

. Other Developments of NABARD of and updated by every the ROs month.22 Library The Central Library at HO houses 28.23 Data Management During 2009-10.E. rural the development. district profile data were accounting bilingual and upgraded with additional features to include preparation of e-TDS and other monitoring reports.20 During the year. The enjoyed by DDMs along with assessing the workloads recommendations are under examination.24 Information Technology During the year. two sensitisation seminars on administrative matters including disciplinary and RTI cases were organised for 100 officers from HO and various RO/TE. respectively. on-line access to the Library Catalogue and relevant articles are made available. 5. the internal website 98 . Further.902 English and 5. further refined and widened to include 19 parameters relating to agriculture and rural development. In addition.. “NABSTATS” – a quarterly bulletin of statistical information in the domain of Agriculture and Rural Development – is also being published and made available on the website of the Bank for wider dissemination. Apart from subscribing to 120 journals and magazines on agriculture and allied activities. etc. a video conferencing facility was set up in the Bank in the last week of March 2010. Achievement of National Goals. Loans and Advances Outstandings. Network and Outreach. Deposits. A dedicated software for to providing saving computer support and from a remote direct location was introduced on a pilot basis. Mumbai during the year H. With a view executive time facilitating interaction and to effectively control travel and related costs. An innovative indexation model called the “District Agricultural Development Index” was developed for analysing the comparative position of Districts of various states in respect of overall Agricultural Development. This year. The internal and external circulars of the Bank and an e-journal called “Issues in Agriculture and Rural Development” are also made available on NABNET. banking. the Bank’s intranet was expanded to collect data/returns from RO/TE by means of an Online Returns Management System (ORMS). covering nine important banking parameters. Further. MIS for Top Management giving the latest achievements in all major business and development areas is continued to be made available on NABNET. CD Ratio. Performance under Financial Inclusion. for the first time in NABARD. F. It also networks with other major libraries in Mumbai. Agencywise performance under Annual Credit Plans and Recovery Position. viz. Speech Recognition Software was provided to RO/DDM to improve efficiency. developed generate The in-house. the model was prepared for Uttar Pradesh. a Banking Profile was also developed. MIS to help quickly was HO and made Departments reports software G. 5. accurately. the transparency. 5. 5. Performance Appraisal Reports (PAR) of officers (through in-house Human This is Resources another Management step of System Bank Software) towards were submitted online.21 The Committee the has set up to review and Performance position Indicators showing comparative important achievements functional areas is also made available on NABNET every month for monitoring the performance by the top management. optimum use of technology and saving precious time for fruitful pursuits. recommend of DDMs existing/new submitted facilities/amenities its report. Library also subscribes to institutional membership of the British Library. An exhibition of books was arranged at HO. The revised and updated District Data Profile and Banking Profile have been included in the PLP for 2010-11. in Star 5.554 Hindi books. information technology.

16 Regional Offices and Bolpur Regional Training Centre. of won India Parivar. Purchase of plots for office buildings/residential quarters is in process in Imphal. The concurrent audit of all RO/TE continued to be undertaken by Concurrent Audit Cells (CAC) set up in the respective RO/TE. A workshop was also conducted at NBSC. to ensure that the systems and procedures were duly followed. Inspections. one at RTC. particularly in the print media. Department. Port Blair and Regional Training College (RTC). citing major areas of concern were submitted to Top Management. the (ABCI) the Silver Awards Bank’s in the 2010. Treasury Accounts Department.25 Office Premises / Residential Quarters At present. Premises Department and CoCell Operations. NABARD initiated a number of steps. On conclusion of the Magazines category. 5. house journal.28 The Concurrent viz. Gangtok and Agartala. A Coffee Table Book ‘Nurturing Dreams. Development Rural Innovation and Fund. Lucknow for officers posted in Vigilance Cell of RO/TE. HO Mumbai and at the Training Complex. Flash Reports (FR). following three inspections and issue of Inspection Reports (IR). The Committee on Subordinate Legislation (Rajya Sabha) visited Shimla and Manali for discussions on Regional Rural Bank (Officers and . Village Inclusion Programme Financial Regional Offices/BIRD/RTC were conducted by Central Vigilance Cell (CVC). Enquiry Officers and for Presenting Officers. placing it second among all house journals published in India.27 During the year 2009-10. Information System Audit. RTC Bolpur and Natural Resource Management Centre (NRMC). Kolkata. Construction of Regional Office Buildings at Bengaluru. A ‘Vigilance Awareness Week’ was observed in the Bank in the first week of November 2009. L. In order to improve the efficiency and effectiveness of the CAC in RO/TE. 5. M.30 Visit of Parliamentary Committee During the year 2009-10. New areas like Co-financing.I. Memorandum and Synopsis of the IR issued together with compliance were also placed before the Management Committee (MC) and ACB for deliberation and guidance. Mangalore and the other at NBSC.26 Vigilance Eight Preventive Vigilance Inspections of 5. Mangalore is in progress. 1. of Audit of Head Office Departments.29 In its endeavour to build strong corporate image and to disseminate information on rural development programmes/schemes. During the year. 99 Parliamentary Committees visited the Bank. in accordance with the Annual Inspection Programme approved by Audit Committee of the Board (ACB). The premises for Jammu RO. Construction of residential flats is in progress in Raipur and Ranchi. apart from the own-office premises at 5. to create awareness and equip officers to function effectively as Vigilance Officers. Itanagar. Lucknow. Financing Finance ICD. the Inspection Department of the Bank carried out inspection of 19 HO Departments. brought out by the Bank won the Gold in the Prestige K.. the audit of Library and HRMD-Leave Section was also done by external auditors. will enter construction phase during 2010-11. two workshops were held. Internal NABARD quarterly 5. continued to be outsourced to external auditors. the Bank has its own premises in sixteen out of twenty-nine cities where the Regional Offices are located. HO. were highlighted in the print media. 5. Public Relations J. Dimapur. An application status tracking system has been activated to enable the public and other stakeholders to know the status of their applications with NABARD. Lucknow. Harvesting Happiness’.. etc. which resulted in wide coverage of its activities. GAD. Concurrent Audits and Committee Meetings Publications category of the Association of Business Communicators Similarly.

including Head Office. monitored implementation of the Rajbhasha Policy of the Govt. A Rajbhasha orientation programme for senior officers was also conducted at NBSC. Special efforts were made to popularise the use of unicode Hindi fonts through special workshops conducted for training on use of APS Saral. ‘B’ & ‘C’. With a view to making Rajbhasha staff capable of using state-of-the-art computer technology in use of Hindi in computerised work environment. the unicode-compliant version of the Bank’s official bilingual software.32 As part of its efforts towards capacity building Rajbhasha officers was also conducted during the year order improve ‘DoS Glossary’ was prepared in consultation with the Department of Supervision and made available to the offices in Region ‘A’. of the staff in order to enable them to use Hindi in their official work. Drafting and Evidence Sub-Committee of during the year. of India. N. to be used by the inspecting officers and by those scrutinising the reports for encouraging issuance of inspection reports in Hindi in this region. NABARD also continued to promote use of Hindi as an effective tool of mass communication for its business development. a five-day IT-oriented technical skill enhancement Lucknow. these offices prepared 102 Potential-linked Credit Plans and issued 54 inspection reports in Hindi.31 In addition to using Hindi in its day-to-day functioning in order to comply with the statutory provisions relating to Rajbhasha. workshops including the newly introduced 3-level innovative workshops. Rajbhasha Shield for excellent work in Hindi during 2008-09 was awarded to the best RO in the Regions ‘A’.33 Under the Cash Award Scheme launched to motivate the staff to do their office work originally in Hindi. 2002 from 11 June 2009 to 17 June 2009. Monitoring was also done through quarterly progress reports received from Regional Offices/Training Establishments. 5. Lucknow. 5. 2. 3. respectively and to one Training Establishment and to two HO Departments. were conducted . Promotion of Hindi NBSC. On-site inspection of 8 Regional Offices and 6 Head Office Departments was also conducted during the year with a view to ensuring strict compliance with the Rajbhasha Policy. Official Language Implementation Committees constituted in all offices.Employees) Service Regulations. During the year. in programme translation 5. to programme A five-day their was conducted at for skills. Drafting and Evidence Sub-Committee of Parliament on Official Language visited Hyderabad from 21 October 2009 to 22 October 2009. Parliament on Official Language visited Raipur on 19 March 2010. cash award was given to eligible staff during the year.

Capital.3 1. 6.1 3. 412 crore was contributed to these Funds. Co-operative Credit Sources of Funds A.7 To augment NABARD’s resources for ST credit 100 1.176 Infrastructure Term crore during 2008-09.3 0.16. resulting in a net inflow of Rs.450 crore by RBI) since 2001-02 against the authorised capital of Rs.116 crore to Rs. Deposits 6.) Funds Deposits Bonds & Debentures STCRC Fund Borrowings from GoI Borrowings from Commercial Banks Certificate of deposits Commercial Paper Term Money Borrowings RIDF Deposits Foreign Currency Loan Borrowing under CBLO Other Liabilities/Funds Total 11.9 0.36.10.586 crore during 2009-10.1.456 aggregated Rs.7 7.399 crore.651 1.4 0.9.675 crore as at the end of current year. 6.5 0.140 crore from Rs. coffee and rubber companies received 12. 6. with repayments being Rs. has put in place a sound Commercial Papers and internal accruals.2 The financial resources of NABARD increased Rs.1.292 100.550 crore subscribed by GoI and Rs.5. During the year.47. in crore) Particulars 31.18. as against Rs. The funds deployed for investment operations (including rural infrastructure co-operative deployed for development) credit and loans to state by governments for contributing to the share capital of institutions and increased marketing Rs.699 4.1.816 181 244 47.4.18.869 crore.1 B.9 0. respectively.2.03.4 1.2009 Amount Share (%) Capital.4 NRC (LTO) & NRC (Stabilisation) Funds The National Rural Credit (Long Term Operations) and National Rural Credit (Stabilisation) Funds are utilised for investment operations and for conversion/reschedulement of short-term credit.023 498 0 11. as on 31 March 2010 as against Rs.622 354 500 1.553 crore under RIDF V to XIV.3.505 crore.00 facilities to Co-operative Institutions.23 crore in the current year. resource management system. The amount of reserves and surplus increased by Rs.4 14. RIDF deposits from commercial banks under RIDF VIII to XV aggregated Rs.675 15.8 31. Reserves & Surplus 6.18.482 crore at the end of previous year.571 482 23.2 0.2 9.3 11. the Short-Term 101 .869 494 215 12.1 0. like any other financial organisation. 6. reflecting an increase of Rs.535 15. Reserves & Surplus NRC (LTO) and (Stab.2 0.03. Fund. an amount of Rs.5 43.000 crore.12.1 0.2 39.5 The amount of term deposits and the deposits from tea.VI Financial Performance & Management of Resources Resource Management is an important aspect of NABARD’s overall management. Table 6.4 20.004 9.2010 Amount Share (%) 9.8 13.680 763 59. RIDF deposits outstanding stood at Rs. As on 31 March 2010. These funds are augmented by internal accruals and contributions made by RBI.023 crore at the end of previous year.292 crore during 2009-10 against Rural Short increase in resources was by way of net inflow of Development Rural Deposits.8 0.846 crore .1: Sources of Funds (Rs.622 147 500 379 2.16.535 crore to Rs.4 0 9.993 crore as on 31 March 2010. Fund The NABARD. The sources and uses of funds are as under: by Rs.6 During the year.9 0.983 505 20.4 0.3 The paid-up capital remained at Rs.7 0.1.59.36. while those production activities (including conversion and liquidity support) decreased by Rs.000 crore (Rs.176 9.

02 per cent for 10 years.1.6. Germany. leaving an outstanding of Rs.622 crore.18 An amount of Rs. Borrowings in Foreign Currency iv. GoI Borrowings 6.09 crore repaid during the year. Certificates of Deposit 6.280.554. i.379 crore.244 crore at the end of previous year.4.13 No fresh bonds were issued during the year.763 crore. Corporate Bonds Rs.379.8 In order to meet the increasing credit demand. The developments relating to the market borrowings of the bank is given below.17 There were no fresh borrowings or repayments during the year.995 (face value) crore resulting in a net outflow of resources.11 crore as on 31 March 2010.Cooperative Rural Credit (Refinance) Fund was set up in 2008-09 with a corpus of Rs.403. The outstanding under BNBs stood at Rs. TMBs of Rs. borrowings from Government of India and bor rowings in foreign cur rency.354 crore was the outstanding as on 31 March 2009. corporate borrowings.1.16 There were no borrowings from the Government of India during the year 2009-10 but only repayment of ii.63 crore were mobilised.188. v.5. as on 31 March 2010. Capital Gains Bonds 6.64 crore.5 per cent of its working funds as on 31 March 2010. as on 31 March 2010.35 crore were redeemed and the outstanding was Rs.12 The approval to issue BNBs was obtained from GoI in the last quarter of 2009-10.921. iii. Corporate Borrowings 6. The outstanding amount was Rs. The outstanding borrowing stood at Rs. NABARD has been augmenting its resources from market borrowings in the form of bonds. The outstanding under STCRC – I & II at the end of the current year were Rs.15 Term Money Borrowings (TMB) of three to six months tenor were resorted to meet short term requirements.14 Certificates of Deposits of Rs.1 crore was drawn under KfW (XI) (UPNRM) which resulted in borrowings in foreign currency from KfW. aggregating Rs. while Rs.494 crore.30 crore were redeemed and the outstanding at the end of the year stood at Rs. The outstanding at the end of the year was Rs. but Rs. as against Rs.11 During the year.52 crore were raised and Rs. The issue was opened in March 2010 and Rs.876 crore.14. as on 31 March 2010.361. as on 31 March 2010 as compared to Rs.9 Capital Gains Bonds aggregating Rs.147 crore.207 crore on maturity of loans drawn under various externally-aided projects.24 crore.4. Borrowings 6.3.15. term money borrowings.816 crore as on 31 March 2009. Statutory Liquidity Ratio (SLR) Bonds 6. Term Money Borrowings 6. as on 31 March 2010.10 No fresh Corporate Bonds were issued during the year.50 crore were redeemed.89. NABARD Rural Bonds 6.63 crore. The borrowings of NABARD constituted 18. Bhavishya Nirman Bonds (BNBs) 6.622 crore contributed by scheduled commercial banks and strengthened with an additional allocation of Rs. commercial papers.9. . certificates of deposits.329. The foreign exchange risk on this loan as well as interest payments have been hedged at a cost of 1.46 crore were raised during the year while the redemption was Rs.000 crore for 2009-10. 6. The outstanding Corporate Borrowings stood at the previous year’s level of Rs. 102 6. The amount outstanding at the end of the year 2009-10 was Rs. SLR Bonds worth Rs.500 crore as on 31 March 2010.

2: Uses of Funds (Rs.255 84 133 2.785 24. crore) Particulars 31. from Rs.1 2.176 Share (%) 11.591 crore as on 31 March 2009 to Rs. 6.7 0 0.33.0 31.24.2010 Amount 9.373 1.335 252 45.2 28.3 0. Loans to State Governments Project Loans under RIDF 6.0 0.255 crore as on 31 March 2010 compared to Table 6.60.18.2009 Amount Cash and Bank Balance Government Securities and other Investments Production and Marketing Credit Conversion of Production Credit into MT Loans Liquidity Support MT and LT Project Loans LT Non Project Loans Loans out of RIDF Co-Finance Loans (net of provision) Other Loans (including MT Investment Credit) Fixed Assets and Other Assets Total 13. 6.14. ST Loans.03.1 2.073 0 20 35.639 crore during the year. was extended to banks for medium and long-term investment credit as against Rs. recording a net outflow of Rs. at the end of the year.45.995 16. as on 31 March 2010.616 95 48 2.896 20 2.1 26.2 0.6 0.628 3.353 1.335 crore at the end of previous year.17.699 crore together with ST (OSAO) loans to SCBs at Rs.205 crore increased to Rs.1 0.5 14. as on 31 March 2010.2 0.8 17.7 100.1 44.002 crore and to RRBs at Rs.2 38.896 crore at the end of previous year.975 2.6.35.21 The amount outstanding under the non-project long-term (LT) loans granted to state governments for contributing to the share capital of co-operative credit institutions.36.16. ii. compared to Rs.616 crore at the end of previous year.0 2.20 RIDF loans to State Governments stood at Rs.19 Rs.742 199 60.2.03.252 crore as on 31 March 2009.22 Refinance assistance of Rs.2 0. MT (Conversion) Loans and Liquidity support The ST (SAO) loans advanced to the SCBs at Rs.0 100.073 crore.8 2.Uses of Funds A. The liquidity support extended to the co-operative banks and RRBs for providing short-term credit had come down from Rs.1 1.199 crore.591 33.167 crore and RRBs at Rs.292 Share (%) 7. amounted to Rs. Investment Credit b.00 103 . Loans and Advances a. Non-Project Loans 6.742 crore.20 crore at the end of the current year. i.

350 crore.400 crore. Rs. the profit before tax for the year amounted to Rs. respectively. Investment Fluctuation Reserve. the profit after tax during the current year amounted to Rs. After meeting an expenditure of Rs.050. Cooperative Development Fund.95 crore at the end of previous year.7. After providing 104 .23 Projects with large outlay.1.84 crore as on 31 March 2010 against Rs. FIF.190 crore was transferred to various Funds..272. for provision/adjustment for taxes. FITF.34 crore interest/financial charges. as on 31 March 2010. Investment of Surplus Funds 6.68 crore during the previous year.Co-finance 6. Rs. provisions and depreciation.2. as Other Loans 6.24 crore in the previous year. WDF and TDF) stood at Rs.5.10 crore and Rs. viz.12. Research and Development Fund.133 crore. compared to Rs.80 crore as against Rs. Income and Expenditure 6. Amounts of Rs.45 crore.1. Further.785 crore at the end of the year.7. FTTF and FIPF. NRC (LTO) Fund.964.13 crore for the previous year.692.24 Other loans extended out of different Funds (CDF. NRC (Stabilisation) Fund and Reserve Fund.26 The total income of NABARD during the current year amounted to Rs.390.26 crore as against Rs. MFDEF.25 The amount of surplus funds deployed by NABARD in various financial instruments stood at Rs.679 crore were transferred to Special Reserve u/s 36(1) (viii) of IT Act 1961. establishment/other expenses. unproven technology and having long-gestation period were co-financed (net of provisions) in association with other banks to the tune of Rs. an aggregate amount of Rs.558.

Annual Accounts 2009-2010 105 .

08% of interest income and 0. Telephones: +91 22 22662550. India. the transactions of the Bank which have come to our notice have been within the powers of the Bank. 0. and iii. evidence supporting the amounts and disclosures in the financial statements. Fort. Mumbai . 2010 issued by Ministry of Finance. Bombay Mutual Building. These offices and training Centre have been selected in consultation with the Bank in terms of notification no.400 001. An audit includes examining. 22662011 • Fasimile: +91 22 22664045 E-mail: info@khimjikunverji. 2010. These unaudited offices account for 33. 1984. on a test basis. We believe that our audit provides a reasonable basis for our opinion. 31. e. read with Significant Accounting Policies and notes on accounts contains 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. 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. and is in conformity with accounting principles generally accepted in India. Our responsibility is to express an opinion on these financial statements based on our audit. Place: Mumbai Dated: May 26.46% of advances. 2010 For and on behalf of Khimji Kunverji & Co. Subject to the limitations of the audit mentioned in paragraph 1 above. which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory. We conducted our audit in accordance with auditing standards generally accepted in India. and ii. 1/14/2004–BOA dated March 03. Department of Financial services. Profit and Loss Account and Cash Flow Statement are the returns from 19 Regional Offices and 2 Training Centers which have not been subjected to audit. we report that: a. In our opinion.com 106 . 105146W Hasmukh B.23% of deposits and term money borrowings. d. as well as evaluating the overall financial statements presentation. We have obtained all the information and explanations. the Cash Flow Statement gives a true and fair view of the cash flows of the Bank for the year ended on that date. shows a true balance of the ‘profit’ for the year ended on that date. These financial statements are the responsibility of the Bank’s management. 22661270. An audit also includes assessing the accounting principles used and significant estimates made by management.com • Website: www. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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.Khimji Kunverji & Co. 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. the Profit and Loss Account.khimjikunverji. b. 2010 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 10 Regional Offices and 1 Training Centre audited by us. the Balance Sheet. c.05% of interest expenses. The returns received from Regional Offices and Training Centers of the Bank have been found adequate for the purposes of our audit. Chartered Accountants Firm Registration No. read with Significant Accounting Policies and notes on accounts. Sir Phirozshah Mehta Road. Dedhia Partner (F-033494) Suit 52. Also incorporated in the Balance Sheet.

222 2106.79. 2.661 5111.67.515 2101. 10. 6. 1.886 98852.68.21.481 2137. K.12.13. 1981) Reserve Fund and Other Reserves National Rural Credit Funds Funds out of grants received from International Agencies Gifts.65. 4.14.14.581 20004. PROPERTY AND ASSETS SCHEDULE As on 31.000 10674. FUNDS AND LIABILITIES SCHEDULE As on 31.793 118176.06.43.35.76.75.80.69.346 69996.78.628 23699.807 17 18 As on 31. 8.21.11.962 118176.67.03.84.96.31.20. 4. 7.379 2735.33.2010 (Rupees) As on 31.03.356 2.2009 Capital (Under Section 4 of the NABARD Act.76.05. Chakrabarty Director Shashi Rekha Rajagopalan Director 107 .08.13.03. As per our attached report of even date Khimji Kunverji & Co. 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 2000.88. 3.00.12.00. 2010 S.689 2994. 2010 Umesh Chandra Sarangi Chairman Dr.00.53.005 15571.59.04.02. No.31.64. 5. C.30.981 247.79. Chartered Accountants Hasmukh B.000 9535.01. 1.83. K. 5.53.56.81. Dedhia Partner Mumbai Date : May 26.17.60.54.741 4863.65.56.94.312 4282.G.759 136292. 9.588 52127.NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT BALANCE SHEET AS ON 31 MARCH 2010 Sr.29. (Rupees) Sr.571 634.115 15983. Karmakar Managing Director Dr.03.2010 9628.00.124 4708.00.00.571 634.000 149.351 563.34.40. No.00. 3.900 3592.73.356 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 Schedules referred to above form an integral part of accounts.49.361 234. Grants.71.12.92.57.00.11.37. Akbar Chief General Manager Accounts Department Mumbai : May 25.79.68.64.484 3785.21.915 136292.807 2000.02.87.266 120505.351 563.2009 13975.150 5177.38.000 154.

000 0 1558.110 1628.218 (Rupees) 2008-09 5693. 2010 Umesh Chandra Sarangi Chairman Dr. K.14. Karmakar Managing Director S. K.53.218 2008-09 1390.00.60.00.672 50. C.83.000 1628. 3. INCOME 1.01.944 2008-09 4255.62.60.01.000 679.03.57.10.52. 1. 4.586 92. 2010 2009-10 1558. 2.000 3.40.242 73.72.43. Interest received on Loans and Advances (Refer Note B-4 of Schedule 18) Income from Investment Operations / Deposits Discount and Commission Other Receipts (Refer Note B-6 of Schedule 18) Total “A” Sr.57. Interest and Financial Charges Establishment and Other Expenses Provisions Depreciation (Refer Note B-15 of Schedule 18) Total “B” 5.599 44.000 10.91. 3.50.000 0 0 64.39. APPROPRIATIONS / WITHDRAWALS 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) Farm Innovation & Promotion Fund (Refer Schedule 1) Financial Inclusion Technology Fund (Refer note B-8(b) of Schedule 18) Profit available for Appropriation Less: Transferred to: a) Special Reserve u/s 36(1) (viii) of IT Act.55.60.98.27.00.G.91.55.657 9.98. PROFIT AND LOSS APPROPRIATION ACCOUNT (Rupees) Sr.45.744 340.00.864 674.35.000 67.204 1438.080 1987.00.00.03.(Asset) (Refer Note B-11 of Schedule 18) c) Provision for Fringe Benefit Tax Profit after Tax Significant Accounting Policies and Notes on Accounts Schedules referred to above form an integral part of accounts.68.44.14.000 32.79.05.043 8.41.00.694 3.786 5063. Akbar Chief General Manager Accounts Department Mumbai : May 25.000 3.000 (-) 80. Chartered Accountants Hasmukh B.000 10.587 21.00.544 1. Profit before Tax (A .457 42.36.00.81.835 5692.657 9.81.19.00.27.043 8.22.00.10.36. 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) Financial Inclusion Fund h) Financial Inclusion Technology Fund i) Farmers Technology Transfer Fund j) Farm Innovation & Promotion Fund (Refer Schedule 1) k) MFDEF Reserve Fund l) Reserve Fund Total Refer Schedule 18 for Significant Accounting Policies and Notes on Accounts.00.26.683 24.000 18.61.00.00.80.000 400.218 647.73.81.70.27.864 3.914 547.29.83.82.220 693.15.57.487 92.97.568 132.70.61.76.260 7050.80.No.27.00.504 0 504.73. EXPENDITURE 1.49.95.694 350.00.82.784 96.00. Chakrabarty Director Shashi Rekha Rajagopalan Director 108 .31.46.90.00.544 80.744 Dr.02.25.000 31. 4.000 3.367 10.42. 18 SCHEDULE 15 16 A 16 B SCHEDULE 2009-10 6653.06. Dedhia Partner Mumbai Date : May 26.00.91.67.29.297 1212.73.426 1214.15.00. 4.00.No.00.76.864 7. As per our attached report of even date Khimji Kunverji & Co.NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2010 Sr.00.620 7964.088 0 1438. 2.05.824 9.13.93.20. 2.641 55.72.13.45.15.310 46.34.26.B) a) Provision for Income Tax b) Provision for Deferred Tax .40.93.45.00. 6.015 2009-10 4988.00.92.599 30.10.38.10.49.53.10.25.000 1390. 3.00.58.797 2272.50.309 96.683 42.00.000 400.00.480 23.00.27.No.

60.16.544 1154.63.39.06.124 28.000 1566. Particulars No.30.95. 10.29.00.56.82.00.01.2009 5223.81.20.00.77.00.00.36.027 0 15.000 10.89.Reserve Fund Farm Innovation & Promotion Fund Total Previous year 5902.73.000 5.460 0 0 77.38.322 4.000 15159.05.00. Reserve Fund Research and Development Fund Capital Reserve Investment Fluctuation Reserve Co-operative Development Fund Soft Loan Assistance Fund for Margin Money Agriculture & Rural Enterprise Incubation Fund Foreign Currency Risk Fund Special Reserve Created & Maintained u/s 36(1)(viii) of Income Tax Act.05.93.089 8.000 Schedule 3 – Funds out of Grants received from International Agencies (Rupees) Sr.59.00.00.211 0 4.324 2.00.03.14.000 10.65.71. 1961 MFDEF .661 170.62.04.000 1.00.28.000 10674.971 50.00.00.000 15983.00.53.81.000 10.03.998 7.00.657 0 0 0 350.2010 1.00.000 80.118 2.110 9.711 0 0 10.88.00.69.000 125.936 4085.00.98.000 410.943 25.64.00.02.00.60.80.00.81.49. No.64.03.77.2010 1. 3.00.208 145.NABARD V Fund for Adivasi Programme Total Previous year 55.SCHEDULES TO BALANCE SHEET Schedule 1 – Reserve Fund and Other Reserves (Rupees) Sr.93.000 2. Particulars Opening Grants received/ Balance as on adjusted during 01.686 154.04.00.165 154.00. 2.910 945. 4.000 1555.00. Project Rural Innovation Fund (RIF) (Refer Note B-2 & 8(a) of Schedule 18) Rural Promotion Fund (RPF) (Refer Note B-2 & 8(a) of Schedule 18) KfW .000 147.25.44./adjusted during the year Balance as on 31.00.174 83.00.829 7.000 125.29. 4.00.68.005 Schedule 2 – National Rural Credit Funds (Rupees) Sr.00. Opening Balance as on 01.73. 5. 8. 6.000 0 50.04. National Rural Credit (Long Term Operations) Fund National Rural Credit (Stabilisation) Fund Total Previous year 14016.31. 2.000 9535.78.00. 3.000 15571.00.53.00.00.2009 the year Interest credited to the Fund Exp.688 149. 9.03.00.661 55.30.000 1.78.174 89.00.599 0 30.00.96.34.00.00.00.03.00.00./Disb.03.00.000 3. 2.Swiss Development Coop.000 80.208 115.005 8602. Particulars No. National Bank .000 74.00.00.75.00.00.115 9535.90. 7.80.434 Transferred to P&L Appropriation 0 9.20.66.00.2009 Contribution by RBI Transferred from P&L Appropriation Balance as on 31.861 50.38.00.385 Transferred From P&L Appropriation 679.84.54.83.800 13.02.30.00.00.00.814 Balance as on 31.00.657 0 0 0 0 0 96.00.00.000 74.61.00. 11.87.00.000 147.00.00.00.09.000 2.84.06.40.00.00.111 15. Opening Balance as on 01.00.84.936 3735.146 2.00.68.61.38.544 14.000 50.31.2010 1.715 16.00.000 410.76.000 5.00.00.00.00.98.000 15571.53.00.82.000 96.661 109 .51.99.000 14417.599 0 0 3.000 400.83.944 5.03.

22.196 0 86.678 1.51.04.729 0 9.757 11.00.03.452 1.60.274 199.346 1. A.84.889 0 0 0 0 3.49.41.88.62.50.57.066 1. 6.Bihar (Refer Note B-8(a) 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 Rain Water Harvesting Scheme 39.155 67.625 2.Bihar Bihar Ground Water Irrigation Scheme (BIGWIS) Cattle Development Programme .924 2.42.63.838 (-) 53.00.97.29.85. B.84.60.136 0 (-) 30.16.100 18.17.24.678 62.91.619 0 0 0 0 28.12. 14. 12. 7.40.95.NHM Capital Subsidy for Cold Storage -TM North East Credit Linked Capital Subsidy for Technology Upgradation of SSIs Subsidy Reserve Co-Finance Capital Investment Subsidy for Rural Godowns On-farm Water Management for Crop Production Million Shallow Tubewell Programme .457 3.11.463 10.01.43.42. 2.265 7.11.792 0 27.50. 11.661 0 0 0 0 0 13.657 0 42.000 0 0 0 0 0 0 0 0 0 0 3.034 2.93.696 0 0 30.53.65.41.54.680 4.04.01.264 3.962 6.818 231.15.14.13.30.22.00. 3.76.540 0 10.Financial Contribution KfW UPNRM .47.339 14.000 19.356 3.71.91.95.91.89.999 0 0 0 0 13. 10.NB .68.90.77.04.08.77.84.73.81.196 (-) 19.33.684 42.203 24.65.63. 1.08.505 0 229.24.11.24.60.78.76.80.14.29.72.038 10.00.91.16.21. KfW .43. 2.187 3.31.97.000 0 0 231.83.Uttarakhand Regional Economic Development KfW-NB-Indo German Watershed Development Programme .65.826 86. 15.90.22.615 32.Uttar Pradesh (Refer Note B-8(a) of Schedule 18) Cattle Development Programme .96.610 (-) 7.972 0 65.735 0 0 0 0 0 29.11.626 4.80.35.29. No.57.57.344 110 .Accompanying Measures KfW NB UPNRM .18. 10.767 1.84. Grants.73.600 2.62. 14.74.38.891 3.00. 11.350 55.50.807 11.95.15.17.090 1.813 8.77.947 1. 15.47.492 0 82.063 1.352 0 23.000 15.490 4.339 0 6. 8.38.750 5.15.06. 13.818 2.591 36.277 2.01.066 (-) 7.04.626 63. 4.43.14.38. 1.155 0 20.000 2.20.44.2009 Grant received during the year Interest Credited to the Fund Adjusted against the expenditure Balance as on 31.646 0 4.18.000 2.74.IX Adivasi Development Programme Maharashtra (Refer Note B-8(a) of Schedule 18) KfW UPNRM .74.31.81. 5.47.2010 2.647 2.66.Schedule 4 – Gifts.000 1. 4.15.456 9.00.864 12.67.889 0 2.67.750 Particulars Opening Balance as on 01.000 40. 7.63.603 6.910 27.65.36.308 2.864 3.97.97. 5. 98.43.Risk Mitigation Fund International Fund for Agriculture Development (IFAD) Priyadarshini GTZ .080 94.570 2. 9.644 54.47.NHB Capital Subsidy for Cold Storage .000 83.344 47.380 40.Phase III .050 0 19.09. 6.00.375 8.37.53.347 6. 3.350 14.12.61.838 18.299 2.81. Donations and Benefactions (Rupees) Sr.Maharashtra (Refer Note B-8(a) of Schedule 18) Indo German Watershed Development Programme Andhra Pradesh (Refer Note B-8(a) of Schedule 18) Indo German Watershed Development Programme Gujarat (Refer Note B-8(a) of Schedule 18) Indo German Watershed Development Programme Rajasthan (Refer Note B-8(a) 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 NE Council Fund for Miscellaneous Training Programme KfW NB SEWA Bank Capitalisation of Rural Financial Institutions (RFIs) GTZ Rural Financial Institutions Program (RFIP) Capital Investment Subsidy for Cold Storage Projects .71. 13. 9.04.143 7. 12.716 (-) 2.339 86.59.17.01.

Schedule 4 – Gifts, Grants, Donations and Benefactions
(Rupees) Sr. No. 16. 17. 18. 19. 20. 21. 22. 23. Particulars Opening Balance as on 01.04.2009 64,47,219 24,09,73,069 0 0 16,15,00,220 0 75,26,115 Grant received during the year 0 20,00,00,000 7,64,01,683 125,71,09,032 38,74,12,000 2,21,27,000 0 Interest Credited to the Fund 0 0 0 0 0 0 3,62,292 Adjusted against the expenditure 0 27,75,12,404 5,51,446 48,63,17,129 49,88,59,117 0 36,90,000 Balance as on 31.03.2010 64,47,219 16,34,60,665 7,58,50,237 77,07,91,903 5,00,53,103 2,21,27,000 41,98,407

Kutch Drought Proofing Project Dairy and Poultry Venture Capital Fund Poultry Venture Capital Fund Scheme for providing Financial Assistance to Sugar Undertakings - 2007 (SEFASU - 2007) Capital Subsidy for Agriculture Marketing Infrastructure, Grading and Standardisation Centrally Sponsored Scheme for establishing Poultry Estate Livelihood Advancement Business School - Sultanpur, Uttar Pradesh (Refer Note B-8(a) of Schedule 18) Livelihood Advancement Business School - Rae - Bareli, Uttar Pradesh (Refer Note B-8(a) of Schedule 18) Multi Activity Approach for Poverty Alleviation Sultanpur, Uttar Pradesh (Refer Note B-8(a) of Schedule 18) Multi Activity Approach for Poverty Alleviation - BAIF - Rae Bareli, Uttar Pradesh (Refer Note B-8(a) of Schedule 18) Capital Subsidy Scheme Agri Clinics Agri Business Centres Artificial Recharge of Groundwater in Hard Rock Area Subsidy Reserve - Central Sector Scheme for AgriMarketing Infrastructure (CSAMI) under RIDF Comprehensive District Plan United Nation Development Programme (UNDP) NABARD - Financial Inclusion Fund Debt Waiver and Debt Relief Scheme (DWDR) 2008 Interest Subvention (Sugar Term Loan) Revival Package of Short Term Cooperative Credit Structure

1,07,57,683

0

6,35,617

32,40,000

81,53,300

24.

9,15,615

3,93,24,000

3,34,934

3,58,75,000

46,99,549

25.

21,88,848 70,91,695 1393,40,91,600 69,47,300 0 0 888,98,76,325 22,35,28,920

3,84,78,000 2,00,00,000 0 0 0 17,04,000 10822,30,71,849 0

6,26,426 0 0 0 0 0 0 0

2,87,00,000 1,60,87,038 137,24,91,547 (-) 22,32,700 0 28,36,293 8781,04,66,593 15,03,91,929

1,25,93,274 1,10,04,657 1256,16,00,053 91,80,000 0 (-) 11,32,293 2930,24,81,581 7,31,36,991

26. 27. 28. 29. 30. 31. 32. C. 1. 2. 3. 4. 5. D.

Cost of Special Audit Recapitalisation Assistance to Credit Cooperative Societies Technical Assistance Human Resources Development Implementation Cost Long Term Co-operative Credit Structure (LTCCS) Total Previous year

15,81,79,625 2319,66,19,073 41,63,03,412 51,36,24,558 14,52,94,384 20,00,00,000 5111,01,92,515 3967,49,29,810

0 780,00,00,000 0 5,00,00,000 15,00,00,000 0 12231,72,67,977 21902,90,60,391

0 0 0 0 0 0 58,53,848 89,23,079

(-) 18,67,381 3097,74,84,520 9,53,24,009 3,80,85,442 24,11,68,493 0 12635,24,59,961 20760,27,20,765

16,00,47,006 1,91,34,553 32,09,79,403 52,55,39,116 5,41,25,891 20,00,00,000 4708,08,54,379 5111,01,92,515

E 1. 2. Grants to RRBs/SCBs/SLDBs under ARDR Scheme, 1990 Less : Grants Released to RRBs/SCBs/SLDBs under ARDR Scheme, 1990 Total

As on 31.03.2010 2695,37,95,937 2695,37,95,937 0

As on 31.03.2009 2695,37,95,937 2695,37,95,937 0

111

Schedule 5 – Other Funds
Sr. Particulars No. Opening Balance as on 01.04.2009 Additions/ Adjustments during the year Transferred from P & L Appropriation Interest Credited Expenditure/ Disb.during the year Transferred to P&L Appropriation

(Rupees)
Balance as on 31.03.2010

1.

Watershed Development Fund (Refer Note B-8(a) of Schedule 18) Micro Finance Development and Equity Fund (Refer Note B-8(a) of Schedule 18) Interest Differential Fund (Forex Risk) Interest Differential Fund (Tawa) (Refer Note B- 1 of Schedule 18) Adivasi Development Fund Tribal Development Fund Financial Inclusion Fund (Refer Note B-8 (a) & 8(b) of Schedule 18) Financial Inclusion Technology Fund (Refer Note B-8 (a) & (b) of Schedule 18) Farmers Technology Transfer Fund Total Previous year

1125,20,82,053

4,88,98,759

0

62,14,79,659

44,70,43,368

44,70,44,367

1102,83,72,736

2.

133,92,26,272 131,72,59,945

20,00,00,000 13,50,96,743

0 0

5,10,57,237 0

10,48,37,639 0

10,01,05,309 0

138,53,40,561 145,23,56,688

3. 4.

11,55,448 3,39,55,294 574,98,34,187

0 4,35,97,724 628,85,46,109

0 0 0

0 0 0

0 7,55,25,000 53,01,13,090

0 0 0

11,55,448 20,28,018 1150,82,67,206

5. 6. 7.

34,08,56,423

16,50,00,000

0

2,50,37,352

7,98,49,235

0

45,10,44,540

8.

48,36,98,966 50,00,00,000 2101,80,68,588 1518,00,64,973

3,50,00,000 0 691,61,39,335 563,08,20,542

0 64,58,40,784 64,58,40,784 82,61,42,310

3,01,03,072 0 72,76,77,320 41,78,70,367

1,67,31,889 14,58,40,784 139,99,41,005 68,84,13,538

1,00,00,000 0 55,71,49,676 34,84,16,066

52,20,70,149 100,00,00,000 2735,06,35,346 2101,80,68,588

9.

Schedule 6 – Deposits
(Rupees) Sr. Particulars No. 1. 2. 3. From Central Government From State Governments From Others a) Tea / Rubber / Coffee Deposits b) Term Deposits c) Commercial Banks (Deposits under RIDF) d) Short Term Cooperative Rural Credit Fund Total As on 31.03.2010 0 0 123,73,69,028 381,35,32,000 59868,64,76,553 9622,28,25,000 69996,02,02,581 As on 31.03.2009 0 0 60,45,95,645 421,63,02,000 47022,75,11,983 4622,28,25,000 52127,12,34,628

Schedule 7 – Bonds and Debentures
(Rupees) Sr. Particulars No. 1. 2. 3. 4. 5. SLR Bonds Non Priority Sector Bonds Capital Gains Bonds Bhavishya Nirman Bonds NABARD Rural Bond Total As on 31.03.2010 188,63,09,000 14876,00,00,000 361,64,40,000 4554,11,06,150 23,99,57,000 20004,38,12,150 As on 31.03.2009 277,98,11,000 18156,50,00,000 690,93,90,000 4550,02,81,900 23,98,87,000 23699,43,69,900

112

Schedule 8 – Borrowings
(Rupees) Sr. Particulars No. 1. 2. 3. From Central Government Reserve Bank of India From Others : (a) In India (i) Certificate of Deposits (ii) Commercial Paper (iii) Borrowing under Collateralised Borrowing Lending Obligation (iv) Term Money Borrowings (v) Commercial Banks (b) Outside India (i) From International Agencies Total As on 31.03.2010 146,76,06,717 0 As on 31.03.2009 353,80,83,226 0

379,45,90,000 2679,71,76,000 214,82,34,328 762,50,00,000 500,00,00,000 494,53,60,696 5177,79,67,741

1816,15,33,900 180,61,86,000 0 244,07,00,000 500,00,00,000 498,29,11,186 3592,94,14,312

Schedule 9 – Current Liabilities and Provisions
(Rupees) Sr. Particulars No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Interest / Discount Accrued Sundry Creditors Provision for Gratuity (Refer Note B-16 of Schedule 18) Provision for Pension (Refer Note B-16) Provision for Encashment of Ordinary Leave (Refer Note B-16 of Schedule 18) Unclaimed Interest on Bonds with RBI Unclaimed Interest on Bonds Unclaimed Interest on Term Deposits Bonds matured but not claimed (Refer Note B-10 of Schedule 18) Application money received pending allotment of Bonds Provisions and Contingencies (a) Amortisation of G. Sec. - HTM (b) For Standard Assets (c) Depreciation in value of investments - Equity (d) Sacrifice in interest element of restructured loans (e) Provision for Other Assets & Receivables (f) Provision for Income Tax [Net of Advance Tax] Total As on 31.03.2010 2489,39,45,807 972,40,00,623 1,62,24,627 690,04,64,685 (-) 9,91,64,455 6,54,086 4,37,40,749 8,283 12,32,18,250 15,64,32,250 90,90,79,760 594,57,00,000 1,44,36,000 8,00,000 35,48,250 0 4863,30,88,915 As on 31.03.2009 2012,53,59,327 596,61,60,450 261,52,90,025 637,35,36,151 24,52,09,592 6,54,086 9,36,66,167 27,913 69,11,50,000 4,19,36,006 72,72,63,808 493,07,00,000 2,12,28,000 4,54,00,000 35,48,250 94,64,83,187 4282,76,12,962

Schedule 10 – Cash and Bank Balances
(Rupees) Sr. Particulars No. 1. 2. Cash in hand Balances with : a) Reserve Bank of India b) Others (I) In India (i) Other Banks in India a) On Current Account b) Deposit with Banks (ii) Remittances in Transit (iii) Collateralised Borrowing and Lending Obligations (II) Outside India Total As on 31.03.2010 11,720 25,45,41,784 As on 31.03.2009 21,579 169,67,65,931

533,94,81,680 9000,00,00,000 68,93,40,300 0 0 9628,33,75,484

420,21,61,811 13067,10,00,000 185,25,16,092 132,96,39,276 0 13975,21,04,689

113

000 48.78. 1.000) .30.00.16.10 each] (ii) Agri-Business Finance [Andhra Pradesh] Ltd.Equity shares of Rs.11.1602.25.700 2994. 114 .1979. [52.32. [50.49.60.60.06.00.114)] b) Treasury Bills Other Approved Securities Equity Shares in : (a) Agri-Development Finance Company Ltd. Particulars Refinance Loans a) Production & Marketing Credit b) Conversion Loans for Production Credit c) Medium Term Investment Credit.000 744.000 5.75. [6.76.000 4.000 Rs.45.000) .000 60.13.00.Equity shares of Rs.00.65.000 4.60.500 1.800 3785. 5.000 11.Equity shares of Rs.68.930 (Rs.10 each] (g) Multi Commodity Exchange of India Ltd.00.7.000 15. 5.00.10 each] (f) National Commodity and Derivatives Exchange Ltd.00.206 3.981 2.600 39.00.10 each] (iii) Agri Development Finance [Tamil Nadu] Ltd.27.000 (Rs.000 (52.000 1.00.000 13.91.2010 24073.000 Rs.00.00.1.000) .13.000 (Rs.43.000 83.000 1.00.000 15.82.10.000 (52.00.03.012 1.00.72.29.000 each] (d) Commercial Paper [Face Value Rs.20.2009 1555.54.717 0 45616.00.66.284 29.00.89.51.24.56.000) .820 1.036 198.00.21.01.80.10.APIDC-V Investment [50.10 each] (b) Agricultural Finance Corporation Ltd.00.85.1530.000)] [Market Value Rs.00.00. [52.000 (6.00.14. 900.23.000 each] (c) Small Industries Development Bank of India [1.50.365 14.000) .00.000 (1.000 (52.03.000 (50.00.84.000 2590.00.730 3.74.000 4. [52.63.35.00.000 0 Rs.1971.Equity shares of Rs.64.67.255 120505.21.368 29.000 5.00.00.95.Equity shares of Rs.60.000 48.808 98852.000 60255.00.20.52.03.35.Equity shares of Rs.000 35741.92.00.00.30.00.00.47.266 1000.000)] Total as on 31.99.77.000) .Equity shares of Rs.000 1.37.00.00.60. No.00. [25.000 33334.00.51. 0 0 156.000) .Non-Project loans d) Liquidity Support e) Other Investment Credit : i) Medium Term and Long Term Project Loans (Refer Note B-14 of Schedule 18) ii) Long Term Non-Project Loans iii) Interim Finance Direct Loans a) Loans under Rural Infrastructure Development Fund b) Other Loans: i) Co-operative Development Fund ii) Micro Finance Development Equity Fund iii) Watershed Development Fund iv) Tribal Development Fund v) KfW UPNRM vi) Farm Innovation & Promotion Fund c) Co-Finance Loans (Net of provision) Total as on 31.999 85.00.79. No.00.000) .00.000 60.00.45.81.186 2. 3. Particulars Government Securities a) Securities of Central Government (Refer Note B-7 of Schedule 18) [Face Value Rs.00. Ltd.Schedule 11 – Investments Sr.5 each] Others (a) Units of Liquid Mutual Funds (Refer Note B-22 of Schedule 18) (b) BVF (Bio-Tech Venture Fund) .84.000 0 0 94.2010 1991.10 each] (d) Agriculture Insurance Company of India Ltd.00.50.31.50.2009 16896.Equity shares of Rs.00.03.966 (Rupees) as on 31.10 each] (e) NABARD Consultancy Services Pvt.92.000) Class A Units of Rs.000 142.25.98.00.000 (50.74. (i) NABARD Financial Services Ltd.000 5.20.00.05. [53.850 (45.03.80. 5.00. 1.000 5.57.00.61.417 251.625 0 0 20.00. [1.00.00.70.08.03.00.04.000 20.00.000 (1.150.000) .60.00.000 (25.69.100 23.00.00.00.361 (Rupees) as on 31.886 Schedule 12 – Advances Sr.Equity shares of Rs.60.19.

21.51.000 9.359 61.04.76.76.415 1.16.406 258.774 52.24.60.42.80.14.777 4.72.59.693 51.30.96.09.29.20.82.000 2.67.000 29.75. 11.82.123 124.54.14.39.78.990 146.76.045 72.083 1.12.867 1.19.07.45.744 258.225 2106.56. 5. 3.05.151 4.2009 1501.2010 1496.00.83.349 2137.83.12.80.55.29.55.38. 6.468 56.000 4.867 32.24. 2.12.55.44.99.29.03.63.754 144.671 1.579 60.06.09.40.14.20.219 12.793 115 .76.864 68.45.95.10.12. 4.71.18.526 15.52.60.27.97.02.03.071 15.14. 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 4.415 135.444 2. 9.481 256.Schedule 13 – Fixed Assets Sr. 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 5.82.20.01.00.139 57.14. No. 1.237 66. No.061 2.71.215 54.63.392 3.12.19.80.85.621 6.43.03.110 1.27.03. 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-11 of Schedule 18] Expenditure recoverable from Government of India/International Agencies Discount Receivable Total as on 31.820 2. 7.73.857 38.37.44.65.33.27.94.76.833 68.62.87.37.2009 144.79.81.97.046 66.912 2.85.03.759 as on 31.26.08.48.75.78.549 1.47.05.51.48.95.73.824 5.83.25.752 56.382 61.811 103.63.676 34.23.37.50.062 71.348 26.64.977 56.461 112.23.889 234.21.43.398 6.35.45.331 0 384.16.601 144.84.51.30.256 107.113 34.26.77.37.47.57. 12.83.17.19.86.58.745 317.398 59.222 Schedule 14 – Other Assets (Rupees) Sr.06.935 144. PREMISES (Refer Note B-13 of Schedule 18) Opening Balance Additions/adjustments during the year Closing Balance (at cost) Less: Depreciation to date Book Value 3.062 2.49.68. 10.906 60.150 5.00.520 259.28.286 4.293 8.46.331 1.565 64. Particulars LAND : Freehold & Leasehold (Refer Note B-13 of Schedule 18) Opening Balance Additions/adjustments during the year Closing Balance (at cost) Less: Amortisation of Lease Premia Book Value 2.442 247.76.172 1.611 6.443 4.62.057 54.75.25.70. 8.913 20.620 2.57.72.03.33.856 57.22.22.727 2.35.467 114.06.051 1.17.45.212 1.02. 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 as on 31.48.2010 (Rupees) as on 31.021 4.774 1.46. 1.47.08.200 122.60.90.259 1.03.55.58.29.00.02.02.56.09.

Maharashtra KfW .999 76.990 9.71.45.130 3.320 6.73.05. 3.178 175.69.218 4.15. Uttar Pradesh Multi Activity Approach for Poverty Alleviation BAIF Project Rae Bareli.78.446 12.57.24.35. on Bonds and Securities Total 116 .352 3.Gujarat Corporate Borrowings from Banks and FIs in India Rural Innovation Fund Livelihood Advancement Business School RF Project Sultanpur.28.97.81.40.566 2157.13.129 96.30.457 8.694 1581.45.578 7.83.735 15.41.14.902 3.22.82.420 94.01.71.135 6.77.863 45.62.169 38.596 3.31.NB Indo German Watershed Development Programme Phase III .24.17.25.04.20.118 3. Uttar Pradesh Multi Activity Approach for Poverty Alleviation BAIF Project Sultanpur. Commission & issue exp.90.24.18.934 6.21. Uttar Pradesh Livelihood Advancement Business School RF Project Rae Bareli.54.70.26.063 67.42.45.349 4.57.726 12.663 6.76.50.Accompanying measures Short Term Cooperative Rural Credit Fund Micro Finance Development and Equity Fund Indo German Watershed Development Programme Andhra Pradesh Indo German Watershed Development Programme .00.76.28.50.47.34.19.35. Interest Paid on a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) r) s) t) u) v) w) x) y) z) aa) ab) ac) 2.79.21.220 2009-10 2008-09 Discount on Collateralised Borrowing and Lending Obligations Swap Charges Discount.86.07.05.Schedule 15 – Interest & Financial Charges (Rupees) Sr.81.30.IX Adivasi Development Programme Indo German Watershed Development Programme .953 1.53.57.32.515 2872.445 5.26.70.391 33.28.71.44.43.114 4255.43.35.203 1.426 7.52.237 1.74.08.37. Brokerage.NB .14.45.382 4.767 5.69.25.17.10.155 44.870 4988.83.305 5.717 23.38.299 37. 4.625 130.Rajasthan KfW .50.384 37.906 2.19.943 4. 1.99.91.292 3.617 6.171 13.95.11. Uttar Pradesh Deposits / Borrowings Discount Cost Paid on Certificate of Deposits 24.023 2.28.106 5. Loans from Central Government Borrowings from Reserve Bank of India Bonds (Refer Note B-5 of Schedule 18) Tea / Coffee / Rubber Deposits Term Money Borrowings Term Deposits Borrowings from International Agencies Commercial Paper (Refer Note B-5 of Schedule 18) Deposits under RIDF Cattle Development Programme (UP & Bihar) Watershed Development Fund Financial Inclusion Fund Financial Inclusion Technology Fund KfW UPNRM .04.54.26.659 2.51.00.682 5.671 14.323 27.35.029 0 1623.414 3.36.88.957 128.047 8. Particulars No.182 4.657 62.50.67.865 0 27.914 25.072 24.18.03.

367 96.83.673 23.06.50.28. 1.000 60.57.40.60.223 84.844 34.80.93.98.44.000 3.60. No.544 23.93.496 11.587 Schedule 17 – Commitments and Contingent Liabilities (Rupees) Sr.40. 11.01.38. No. 4.000 (-) 8. Rates.60. 13.15.Equity Sacrifice in interest element of restructured Accounts Other Assets / Receivable Total 2009-10 2008-09 1 2 3 4 5 6 18.50. 2.86.988 132.62.043 9.46.49.85.33.71.952 101.23. 10.77.909 31. Particulars Salaries and Allowances 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.92.000 20.367 25.49.96.431 6.657 10.18.36.03.2010 60.63.59.896 92.000 16.031 7.037) 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.81.55.39.99.5. 5.000 (-) 4.65.80.568 3.00. 7.27.00. 3.70. Telegrams & Telephones Repairs Auditors’ Fees Legal Charges Miscellaneous Expenses Expenditure on Miscellaneous Assets Expenditure on Study & Training [Including Rs.952 73. for NFS Promotional Measures/ Activities Wealth Tax Total 2009-10 250. (Refer Note B-18 of Schedule 18) Sub Total “B” Total (A + B) As on 31.436 2008-09 251.96.93.66.21. 1 2 (i) Particulars Commitments on account of capital contracts remaining to be executed Sub Total “A” Contingent Liabilities Claims against the Bank not acknowledged as debt. Sec Standard Assets Non Performing Assets Depreciation in Value of Investment Account .03.71.824 73.477 19.839 2. 5.96.97.531 46.356 16.42.55.90.06.70. 17.00.80.70.000 17.000 3.97.00.88.52.125 19.52.39.331 24.26.62.58.434 6.000 8.242 24.000 3.34.000 3.80.86.000 (-) 10.03.2009 16.399 5.69.33. No.324 2.45.388 23.375 19.66.690 693.487 Schedule 16 B – Provisions (Rupees) Sr.73.18.11.16.57.73. Travelling Expenses Printing & Stationery Postage.747 18.14.540 (-) 67. 8.20.57.14.360 19.46.36.966 1.39. etc.452 41.33.80.640 29. 9.09.097(Rs.58.05.79.000 47.60.27.395 4.410 25.000 63.11.44. Lighting.44.80.000 117 .425 266. 14.04.36. 12. 15.92. Particulars Provisions for : Amortisation of G.91. Insurance.81.62.00.407 55.413 2.35. 3.15.806 7.09. 6.30.Schedule 16 A – Establishment and Other Expenses (Rupees) Sr.000 As on 31.61.480 18.06.79.60.309 44.088 0 1.490 547.85.38.60.22.36.322 1.

Subsequent expenditure incurred on existing assets is capitalised only when it increases the future benefit from the existing assets beyond its previously assessed level of performance.000 at each accounting unit under a single head of expenditure. Actual results could differ from such estimates. 1. The cost of assets includes taxes. the example of such cases include the estimated life of fixed assets. 118 .3 Land includes free hold and leasehold land.2 Expenditure incurred on assets purchased for the value not exceeding Rs. the accounting policies have been consistently applied by National Bank for Agriculture and Rural Development (NABARD / the Bank) and are consistent with those used in the previous year.2 Issue expenses relating to floatation of bonds are recognised as expenditure in the year of issue of Bonds. 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).1 Income and expenditure are accounted on accrual basis except the following. duties.3 Dividend on investments is accounted for when the right to receive the dividend is established. b. 3. 3.10.4 Premises include value of land where segregated values are not readily available. Interest on non-performing assets identified as per RBI guidelines. Income by way of penal interest charged due to delayed receipt of loan dues or non– compliance with terms of loan. 1. 3. d. if any. 3.1 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. on written down value basis 3.5.6 Depreciation on leasehold land and premises situated thereon is computed and charged at higher of 5% on written down value basis or the amount derived by amortising the premium/cost over the remaining period of lease hold land on straight– line basis. Expenses not exceeding Rs.000 per unit is charged to Profit and Loss Account. provision for anticipated losses. 1 Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses. Except otherwise mentioned. 1981 and Regulations thereof. Such differences are recognized in the year of outcome of such results. Significant Accounting Policies Basis of Preparation 2. 2010 A. 1.5 Depreciation on premises situated on free hold land is charged @ 10% p.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 20% 32% 20% 20% 2. Income and expenditure 2. Fixed Assets and Depreciation 3.2 Preparation of financial statements as per Generally Accepted Accounting Policies (GAAP) requires the management to make several assumptions and estimates that affect reported results and the reported state of affairs of the Bank.a. liability on account of employee retirement benefits. Watershed Development Fund.Schedule 18 SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED MARCH 31. which are accounted on cash basis: a. Service Charges on loans given out of Micro Finance Development and Equity Fund. 3. 2. freight and other incidental expenses related to the acquisition and installation of the respective assets. etc. c.

2 In case of restructuring/rescheduling of advances. Foreign Currency Transactions 7.8 Unquoted Shares are valued at breakup value. depreciation / appreciation is recognised in the category for investments classified as “HFT”. if any. is accounted for on the final settlement of agreement.1 In accordance with the RBI guidelines.9 Brokerage. 5.1/.7 Treasury Bills are valued at carrying cost. or at Re. is provided for.per share as per RBI guideline. on such transfer is fully provided for. While only net depreciation. Intangible assets are recognized/amortised as per the criteria specified in AS 26 “Intangible Assets”. Investments are classified into “Held for Trading” (HFT).2 Profit on cancellation of or renewal of currency SWAP agreement. 5. are charged to revenue.6 Investments under “AFS” and “HFT” are marked to market scrip wise at the rate declared by Primary Dealers Association of India (PDAI) jointly with Fixed Income Money Market and Derivative Association of India (FIMMDA) at prescribed inter vals.11 Transfer of a security between the categories is accounted for at lower of the acquisition cost/book value/ market value on the date of transfer and depreciation. Provision for standard assets and non– performing assets is made in respect of identified advances based on a periodic review and in conformity with the provisioning norms prescribed by RBI.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 as a contra entry. 5. the resultant gain if any is ignored and loss if any.3 Investments categorized under “HTM” are carried at cost and provision for depreciation/diminution/ amortisation. Intangible Assets and Amortisation 5. if the latest Audited Accounts of the investee companies is available. 4. 5. 5. however. 6. paid at the time of acquisition. Securities which are not to be classified in the above categories are classified as “AFS”.3 Advances are stated net of provisions towards Non-performing Advances. are marked to market at every reporting date. in value of investments is included under Current Liabilities and Provisions. Loss on sale of investment categorized under “HTM” is recognized in Profit & Loss A/c. investments are further classified under (i) Government Securities (ii) Other Approved Securities (iii) Shares and (iv)Others.4 Provision for diminution. 5.Depreciation is charged for the full year irrespective of the date of purchase of asset.1 Foreign currency borrowings. Advances and Provisions thereon 6. 7. 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 at the time of restructuring/ rescheduling. Investments 5.10 Broken period interest on debt investment is treated as a revenue item. 5.5 Profit on sale of investment categorized under “HTM” is recognized in Profit & Loss A/c and then transferred to Capital Reserve A/c. No depreciation is charged on assets sold during the year. 5. etc. “Available for Sale” (AFS) and “Held to Maturity” (HTM) categories (hereinafter called “categories”).1 Advances are classified as per RBI guidelines. commission. if any. in the value of investments in subsidiaries under the category “HTM” is made. 6. 6. if any. loss on such transactions is provided at the market rates as on the date of Balance Sheet. 5. is provided for investments in the category classified as “AFS”. 7. 5. other than temporary. 119 . if any. Investments that the Bank intends to hold till maturity are classified as “HTM”. Under each of these categories. wherever necessary. which are covered by hedging agreements.

The expenses. 10. Taxes on Income 11.5 Provision for Wealth Tax is made in accordance with the provisions of Wealth tax Act. expected in respect of expenditure.1 Tax on income for the cur rent period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act.1 The Bank has a Provident Fund Scheme managed by RBI. is accounted on cash basis. 9. Contingent Liabilities and Contingent Assets 12.1 As at each Balance Sheet date. 8. being the difference between taxable income and accounting income for the year and quantified using the tax rates and laws that have been enacted or substantively enacted as on Balance Sheet date.1 Segment revenue includes interest and other income directly identifiable with / allocable to the segment. in respect of employees transferred from RBI. The amount of gratuity due from RBI.1 Provisions are recognised for liabilities that can be measured only by using substantial degree of estimation if: a) the Bank has a present obligation as a result of a past event. 8. if any.4 Segment assets and liabilities include those directly identifiable with the respective segments. Impairment of Assets 9. are included under “Other Unallocable Expenditure”. Segment Reporting 10. 11. in respect of all employees including employees transferred from RBI. is recognised only when it is virtually certain that the reimbursement will be received. 10. which require a provision. Contribution to the Fund is made on actual basis. which relate to the Bank as a whole and not allocable to segments. 9. Retirement Benefits 8. the carrying amount of assets is tested for impairment so as to determine: a) b) the provision for impairment loss. which relates to Bank as a whole and not allocable to segments is included under “Other unallocable bank income”.3 Income.2 Impairment loss is recognized when the carrying amount of an asset exceeds recoverable amount. 12 Provisions. required for impairment loss recognized in the previous periods. a probable outflow of resources is expected to settle the obligation. 8.4 Employer’s contribution to Provident Fund relating to the pension optees (part of Pension Fund) is maintained with RBI. 1956.2 Deferred tax is recognized. 9. b) c) 10.2 Provision for gratuity is made based on actuarial valuation. 9. Unallocable assets and liabilities include those that relate to the Bank as a whole and not allocable to any segment. 1961 and based on expected outcome of assessments/appeals.2 Reimbursement.or The reversal. and the amount of the obligation can be reliably estimated.5 Provision for Encashment of Ordinary Leave is made on the basis of actuarial valuation. 8. 10.8. 9. 12. 11.2 Expenses that are directly identifiable with/ allocable to segments are considered for determining the segment result.3 Provision for Pension is made based on actuarial valuation. if any required. on timing difference.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 such deferred tax assets can be realized. 120 .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 such deferred tax assets can be realized.

In accordance with the Memorandum of Understanding entered into with the Swiss Agency for Development Cooperation. In terms of TAWA Command Area Development Project Agreement. LAB’s Revolving Fund (Sultanpur & Rae Bareli) and MAPA BAIF– (Sultanpur and Rae Bareli).6. Notes forming part of the Accounts 8 (a) Interest at the rate of 6. and a possible obligation arising from past events where the probability of outflow of resources is not remote. repayment of loan. Subvention received/receivable from GOI amounting to Rs.12.50 crore was transferred to FIF and Rs. 7.50 crore and short to FIF by Rs. 2010 maintained with RBI.70 crore) representing Interest Subvention received from GoI for providing assistance under Liquidity Support to State Co-operative Banks (SCBs)/ Regional Rural Banks (RRBs) for Rabi 2008-09. Watershed Development Fund.80 crore (Rs. Cattle Development Programme (Uttar Pradesh & Bihar). when it is not probable that an outflow of resources will be required to settle the obligation.3 a) Contingent liability is disclosed in the case of : a present obligation arising from past events. Gujarat. Interest Received on Loans and Advances includes Rs. administration charges on providing refinance under interest subvention scheme to SCBs and RRBs for financing Seasonal Agricultural Operations.6. crore) Particulars Pledged for Business Segment (Securities) Pledged for Business Segment (Collateralised Borrowing and Lending Obligation) Face Value 50.12 crore) includes Rs. Outstanding balance payable on account of ‘bonds matured b u t n o t c l a i m e d ’ a m o u n t i n g t o Rs. 1922. 12.76 Book Value (9.47%) per annum on unutilised balances of Micro Finance Development and Equity Fund.32. 2. provision for pension is made after considering the balance of PF maintained with RBI as per the records available with the Bank. 3. 9.44 crore) being the difference between the cost of borrowing by NABARD and the refinance rate. Investments in Government securities include the following securities pledged with Clearing Corporation of India Limited as collateral security for Business segments: (Rs.32 crore (Rs.5 Provisions.53 crore) on account of SLR Bonds issued by the 1.53 crore (Rs.00) 1933.00 (10. In terms of the agreement with KfW accretion/ income and certain expenditure under UPNRM have been charged to the fund. Other receipts includes Rs.00 (1212.10.00 crore to profit & loss appropriation account.67 crore (Rs. service charges and other receipts made out of Rural Innovation Fund (RIF) are being credited to the Rural Promotion Fund (RPF). interest at the rate of 7.7.50 crore.02 crore) received/receivable from GoI towards 121 .23.220.15 crore (Rs.1. 5. contingent liabilities and contingent assets are reviewed at each Balance Sheet date. Further.87 (1.1.69.00) 49.4 Contingent assets are neither recognized. Pending receipt of confirmation of balance of Provident Fund Account in respect of employer’s contribution as on March 31. Out of the excess contribution in FITF an amount of Rs.68% (6. 10.25) b) c) 12. 35. 794.874.97) B.12. 8 (b) The Banks contribution to FITF was excess by Rs. Maharashtra and Rajasthan) and KfW NB IX Adivasi Development Programme has been credited to respective fund based on respective agreements. 4. has been reduced from interest and financial charges. The loans granted out of the fund have been adjusted with direct loans. nor disclosed.1. a present obligation when no reliable estimate is possible. KfW NB IGWDP–(Andhra Pradesh. the “Interest Differential Fund” is to be utilized for certain specified purposes . 6.00% (6.RPF.00%) per annum on unutilised balances of RIF. Financial Inclusion Fund and Financial Inclusion Technology Fund has been credited to the respective funds.

80 23.41) -10.27 (17.91 (24.51 (92. 2003.01 (705. Gratuity and Leave Encashment.51) 2 3 22.79) 958. 2006.20 (250. ‘Land’ and ‘Premises’ include Rs. 13. The present value of obligation is determined based on actuarial valuation using the Projected Unit Cost Method.82 crore (Rs.2.11) 20.78) 117. Disclosure required under AS 15 (Revised) on “Employee Benefits” is as under: Defined Benefit Plans Represents the Bank’s contribution towards PF for pension optees available with RBI.384.54 crore to be paid to employees who have retired on or after January 01. Excludes incremental pension of Rs. The Bank has.503) on assets purchased under SDC– HID project.66) @ 689. which are included under “Advances – Other Investment Credit – Medium Term and Long Term Project Loans”.99 12.90) 66.1 Employees Retirement Benefit plans of the bank include Pension.17) 221.76 (892.52) 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 @ * 16. The value of Allotment Letters / Debenture Scrips.63 (115.67 crore to be credited to fund Excludes incremental gratuity of Rs. a. as the Bank has decided not to withdraw the said reserve.84) -37.80 defined benefit plans. Reconciliation of opening and closing balances of defined benefit obligations: (Rs.60 317. Nil (Rs.77 (254.99 (637.220 crore has been contributed to the Gratuity Fund managed by the said Trust. Amount recognized in the balance sheet as on 31 March 2010: (Rs.64) -12. 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.34. From October 1.18) 3. during the year.66 (7.53) $ Leave Encashment 115.0.12 crore (Rs.26) 18. During the year an amount of Rs.00 (0. Provision for Deferred Tax on account of Special Reserve created u/s 36(1)(viii) of the Income Tax Act. 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 @ $ Pension 892. 15. crore) Sr.48 384.Bank which were earlier serviced/managed by RBI.66) 15.01 (127.33 crore).99) $ -9.37) 2.80 crore and Rs. 1961. Depreciation charged in Profit & Loss Account is net of Swiss Development Corporation share of depreciation amounting to Rs. 33.67. 14. 16. which are $ 122 . 11. Represents the amount invested with Insurance companies towards the Liability for Leave Encashment.76 (892. The Bank has subscribed to debentures issued by various State Land Development Banks / State Cooperative Agriculture & Rural Development Banks.79 (-17.53 (232. as detailed below: (Rs.55 (90. servicing of these bonds was taken over by the Bank.79 (-8. b.20 (250.00)* 1.79 (18. yet to be received.63 (115. The bank has set up “NABARD Employees’ Group Gratuity Trust” duly approved by the Commissioner of Income Tax to manage the Gratuity Fund of NABARD.53) Leave Encashment (Funded) 117. 30. as at the year end.90 (56.53) 220.19 crore between net deferred tax assets of Rs. crore) Particulars Pension (Partly Funded) 958.77 crore) paid towards Office Premises and Staff Quarters for which conveyance is yet to be completed.195.99 crore as at March 31.62) -25.10) 8. Deferred Tax Assets No.60 (-9.35) Gratuity (Funded) 221.317. in accordance with AS 22 “Accounting for taxes on Income”. 42. aggregates to Rs.85 31 March 2009 344.71 16.65 (20.38) -10.47 (-3.35 20.19 (10.73 (9.01)@ Gratuity 250. recognized in the Profit and Loss account the difference of Rs. 2009 respectively. 2010 and March 31.51) 127.01) 268.20 (250. 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 2010 274. is not considered necessary.

73 (9.06) d.11.3 The aforesaid liabilities include liabilities of employees deputed to subsidiaries.19 (11. there is no impairment to assets to which AS 28 – “Impairment of Assets” applies requiring any provision.04) Interest Cost 17. Expenses recognized in the Profit and Loss Account during the year: (Rs.032 0.25% 7% 1% Opening Balance Addition during the year Deletion during the year Closing Balance Particulars Mortality Table (LIC) Discount rate (per annum) Salary growth (per annum) Withdrawal rate 19. The movement in Contingent Liability as required in AS 29 “Provisions. The total contribution charged to Profit and Loss account during the year is Rs.07 0. 21.66 (7.37 77.41) -10.11 0.29 crore) Current Service Cost 20.37) 2.12.00 0.00) 8.4 The above information is certified by the actuary.c. Contingent Liabilities and Contingent Assets” is as under: (Rs. 20. The contribution 123 .25% 7% 1% Leave Encashment 1994-96 (Ultimate) 8.041 0. Actuarial (gain)/ loss Expected return on Plan Assets Expense recognized in the statement of Profit & Loss 18. 16.46 (26.95% (25.26) 18.85%) as against a minimum of 9% as stipulated by RBI. crore) Sr. 1 2 16.90 (56. expected return on plan assets and expense recognized in profit and loss account. except in respect of pension for fair value of plan assets.54 (188.69) -0. seniority.65 (20.38) - 15.62) -25.038 2008-09 0. Particulars Depreciation Other Expenses Total 2009-10 4.01 (127.08 2008-09 0.01 5.03 0.000 4.5 Defined Contribution Plan: Addition during the year Written Back during the year Closing Balance 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.90) 66. crore) Particulars Pension Gratuity Leave Encashment 3. Actuarial assumptions: Pension 1994-96 (Ultimate) 8. take into account inflation.37 0.75 3. crore) Particulars Opening Balance 2009-10 0. Capital adequacy ratio of the Bank as on 31 March 2010 is 24.20 (-2. No. promotion and other relevant factors including supply and demand in the employment market.99) made for the pension optees forms part of the plan assets of pension scheme.79 (18.37 2008-09 9.84) 0.69 crore (Rs.00 0.2 The estimates of rate of escalation in salary considered in actuarial valuation.10 0.073 16.00 (0. NPA on staff loans: (Rs.21) -14.07 16.02 0. crore) Particulars 2009-10 3.10) 8.00 3. Prior period items included in the Profit and Loss account are as follows: (Rs.03 0.38 (24.60 (-9.25% 4% 1% Gratuity 1994-96 (Ultimate) 8.27 (17. In the opinion of the Bank’s management.038 0.

7770 4.22.024 0.00 0.01 50.00 75.32 25. crore) 31 March 2010 49.684. Small and Medium Enterprises Development Act 2006.437.262.Treasury advantage ICICI Prudential Canara Robeco Life Insurance Corporation IDFC Baroda Pioneer PRINCIPAL Deutsche L&T HDFC SBI Reliance ING Franklin Templeton Religare Total 23.51.88.13.00 0.80.0000 0.00 50.958 6.66.01 0.00 100.48.36 99. 12.00 50.82.1970 4.02 75.03062 Particulars Percentage of Net NPAs to Net Loans & Advances (b) Asset classification 2009-10 Amount (%) 120672.54.85 24.340.42.0000 0.006 44.00 50.3220 3.3330 2.40 26.08.54.61.921.02 0.6320 3.00 1.00 100.00 50.489.436. Investments in Mutual Funds are as under: (Rs.57.01 50.804. 2.00 0.67 100.00 0.00 50.00 0.2/01.00 0.07.No.88.01559 31 March 2009 0.036 0.19. 11. 8.04. of units Book Value Market Value 2.000.18 31 March 2009 43.0530 2.01 100.00 0.9860 3.52.7780 4. Figures in brackets pertain to previous year. 17.9940 3.018/2009–10) dated 15 March 2010.522.69.646. there are no dues payable under Micro.79/21.Money Market UTI .00 0.000.02 0.0000 7.77.1840 4.9180 3.04.30.8210 3.00 50.7970 0. Previous year’s figures have been regrouped / rearranged wherever necessary.11 50.00 50.86 27. 2010 No.3200 2.22.2350 3.95.61 Particulars On – Balance Sheet Items Off – Balance Sheet Items (d) 26. Birla Sun life Tata Kotak Mahindra UTI .01 50.450 550 2.FID.5330 9.27 As at March 31.537.00 100.45 1. crore) 31 March 2010 Nil 31 March 2009 Nil Classification Standard Sub–standard Doubtful Loss Total Particulars Amount of subordinated debt raised and outstanding as Tier II Capital 124 . 15. 9.0000 50.71.11.8210 9. (c) Risk weighted assets (Rs.00 75.91.38.09 50.0000 4.1210 0.45 0.02.00 0.00 0. 5.02 50.829.BP.70.31 S. RBI/2009–2010/347 (DBOD.43. 7.0000 0.86 0.95 23.00 50.2880 4. RBI/2009–2010/49 (DBOD.00 0.04. Pattern of Capital contribution as on the date of the balance sheet (Rs.01 100.00 0.00 900.0000 0.127.37. 16. 2009 No.00 0.6750 100.71 0.00/2009–10) dated 01 July 2009 and No.00 50. Mutual Fund 1.983.000 120723.7790 0.0000 0.18.0000 4.00 900.973. 14.64.10. 4.2970 4. As per the information available with the Bank.11. 10.99.01 50.1780 0.05 50.00 50.00 50.00 100.478.00 100.01 50.2 (a) Asset Quality and Credit Concentration Net NPA position 31 March 2010 0. 18.00 50.915.00 50.000 Contributor Reserve Bank of India Government of India Total 26.00 75.00 50.00 50.02 50.70.00 100.00 50.00 0. of units Book Value Market Value 7.1 Capital (a) Capital to Risk–weighted Assets Ratio (CRAR) (Percent) Particulars CRAR Core CRAR Supplementary CRAR 31 March 2010 24.01 50.01 50.86.80.02 50.969 6.4970 29.13 100.01 49. 24.01 0.01 100.04.0630 6.701.00 0.6304 8.00 0. Name of the No.00 100.360. 19.19. crore) 31 March 2010 1.04 50. in crore) As at March 31.00 100.93 1.229.000 98852. crore) 2008-09 Amount (%) 98822. 3.28.00 (b) Subordinated Debt (Rs.00 50.00 50.05 100.828. 6.335.619.191.000 31 March 2009 1.00 50.00 100.064.450 550 2.00 100.BC.FIC.9960 3.007 23.27.404. 13.41.238.07.20.48 31 March 2009 25.994.40 99. The following additional information is disclosed in ter ms of RBI circulars No.88.635.00 50.000 (Rs.02 50.04.01.03 0.9850 7.228.4780 8.09.47 1.08.332.94.00 50.03 100. 25.

00 (0.19 crore).08 (48326.15 (9.86 1.00 (0.12 (117680.68 647.60 -0.29) 135696.31 0.13 1.57 106.64) 33683.33) 36004.40 333.07 (108.66 5.98% Sr.33 2008-09 6.91) 3 4 Rupee Liabilities Foreign currency liabilities Total Liabilities # Net of provision made as per RBI directives on Standard Assets as well as for diminution in value of Investments aggregating to Rs.57 (22015. in crore) 2009-10 6.60 crore towards Fringe Benefit Tax Largest Single Borrower Largest Borrower Group 145.41 13.35 38.23 0.17 (24003.76 2008-09 19.10) 1 2 Rupee Assets Foreign currency assets Total Assets 51280.00) 35053. 26.12 (117680.04 (16563.15 Not Applicable Not Applicable (d) Movement in Net NPAs (Rs.92) 135201.80 1.06 31.58 (117182. crore) Provisions against Standard Assets Non Performing Assets Investments (Net) Income Tax Total 2009-10 101.00) 51280.14 (28354.34) 33482. Item Less than or equal to 1 year More than 1 year upto 3 years 35053.97) 10.30 0.14 (28354.00 765.31 8.596.71 (64.28 11.54 (498.90) 0. 3.3 Liquidity (k) Maturity pattern of Rupee Assets and Liabilities (l) Maturity pattern of Foreign Currency Assets and Liabilities More than 5 years upto 7 years 15363.52) 64.26 (23204.00 30.00 30.61 (14243.23 (24112.00) 5007.60* 724.96 18.89 (16553.36) 18416.00) 15363.61 (14243.80 (17513.06 (108.03 30.08 (48326.63) 494.72 13.94) 22618.3) 5007.10 1.12 (117680.47 0.64) 35939.4 Operating results Particulars (a) (b) (c) (d) (e) 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.69) 18525.42) 109.55 (206.90) 22607.93 32.85) More than 3 years upto 5 years 28992.50 17.19 0.28 677.495.90 (e) Credit exposure as percentage to Capital Funds and as percentage to Total Assets Category 2009-10 Credit Exposure as % to Capital Funds Total Assets 2008-09 Credit Exposure as % to Capital Funds Total Assets I II * includes Rs.31 III Ten Largest Single Borrowers for the year IV Ten Largest Borrower Groups 379.70 8.61) 109.81 Not Applicable Not Applicable 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 before provision for PCR (C–D) (F) Additional Provision for PCR (G) Net NPAs as at the end of the year (E–F) (f) Credit exposure to the five largest industrial sectors as percentage to total loan assets: Not Applicable 26.01 crore (Rs.36) 0. crore) 2009-10 30.34) 0.68) 24864.42 2008-09 73.00 (0.73 (17404.03 (3551.28 (22079.03 (3551.88 -35.00 (0.22 (37205.00 (0.00 (0.68) 0.32 10. No.11) 201.(c) Provisions made during the year (Rs.64) 0.28 125 .75) 135696.92) More than 7 years Total # The Provision Coverage Ratio (PCR) of the Bank as on 31 March 2010 stood at 62.00) 135696.26 (23204.77 (37411.92) 0.31 0.68) 24755.00) 28992.27 35.

5 Movement in the provisions (a) Provision for Non Performing Assets (Loan Assets) (Rs.91) 1. 1.00 14. 126 . 4.00 (0.40) 0.60 crore (Rs.00) 2. The value of outstanding principal amount of hedge contract at the year–end exchange rate stood at Rs.46 crore (Rs. Derivatives (Notional Principal amount) A) For Hedging B) For Trading 2.08 32. Rs.00) NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 5. if any. (b) Provision for depreciation in investments (Rs.e.26.63 crore) have been rescheduled.12 (38. Write Backs of excess provision (ii) Transfer. if any.44 (2.00 5.25.54 crore.51. Out of the above.03) 0.30.00 (0.11 Corporate Debt Restructuring (CDR) During the year one loan account classified as Standard Asset with outstanding of Rs.40 18. from Investment Fluctuation Reserve Account during the year 26.9 14.28) 0. Particulars No. The Bank does not have any open exposure in foreign currency.19.84 crore (Rs. to Investment Fluctuation Reserve Account Sub Total [D] E Closing balance as at the close of financial year (C–D) 26. The quantitative disclosure in this regard is as under: (Rs.6 Restructured accounts During the current financial year eight loan accounts outstanding to the extent of Rs. provision for PCR) Less: Write off.12) A B Add Opening balance as at the beginning of the financial year (i) Provisions made during the year (ii) Appropriation.68 (35.08 crore. There is no Interest sacrifice on these reschedulements.77 crore (Rs.563.12 Disclosure on risk exposure in Derivatives The Bank does not trade in derivatives.47 crore) is classified as Standard asset and four loan accounts outstanding of Rs.8 26. in crore) Particulars Opening balance as at the beginning of financial year Add: Provision made during the year (Incl. Consequent upon hedging of foreign currency borrowings the same is shown at contracted value as per the Swap agreement. However.88 0.62 crore) was written back during the current financial year. 563.494.16 crore) has been classified as Sub Standard Asset.29) NA 69.91) 0. Interest sacrifice is reviewed at each balance sheet date and necessary provision is made or reversed. Marked to Market Positions [1] a) Asset (+) b) Liability (–) 3.12 (37. four loan accounts outstanding of Rs. write back of excess provision Closing balance at the close of financial year 2009–10 2008–09 26.26.07 million Euro and interest thereon for the entire loan period.52 8.4. Accordingly.00) 0.40 26. The interest sacrifice on loans restructured during FY 2005–06 amounted to Rs. Rs. in crore) Particulars 2009–10 2.25 crore has been subjected to restructuring under CDR. it has hedged its liability towards borrowings from KfW Germany to the extent of 93.8.7 Assets sold to securitisation company / reconstruction company: NIL (NIL) Forward Rate Agreements and Interest Rate Swaps : NIL (NIL) Interest Rate Derivatives : NIL (NIL) 26.68 (35.68 1. Credit Exposure [2] Likely impact of one percentage change in interest rate (100*PV01) a) on hedging derivatives b) on trading derivatives Maximum and Minimum of 100*PV01 observed during the year a) on hedging b) on trading Currency Interest Rate Derivatives Derivatives C Sub Total [A+B(i)+B (ii)] D Less (i) Write off.31.66 (498.00 (0. in crore) Sr.10 Investments in Non Government Debt Securities : NIL (NIL) 26.24.00 (0.63) 0.66 crore and the value of outstanding principal liability in the books of account stood at contracted value i.12 (136.50.

00 (1282. List of Related Parties: Key Management Personnel: 1. the details of the transactions with other state controlled enterprises are not given.00 (1282.30 (0. Related party relationships have been identified by the management and relied upon by the auditors.00) – – 20.00) – – 20.22) – No amounts.14 Related Party Transactions exposure limits during As the Bank is state controlled enterprise within the meaning of AS-18 “Related Party Transactions”. 4.00 (60.23 (11.13 Exposures where the FI had exceeded pr udential the year: NIL (NIL) 26.00) 41.14) (Rs.12) 1794.60) 21. Shri Umesh Chandra Sarangi .75) ‘Below investment grade’ Securities held (5) – – – – – ‘Unrated’ Securities held (6) – – – – 20.60) 21.Chairman 2.60 (20.00 (48. or provided for during the year.12) 1794.00 (60.60) 1663. 3. Amount Investment made through private placement (4) 60.26.23 (11. K G Karmakar 0.60) 1663. Dr.60 (20.35) 127 .75) ‘Unlisted’ Securities (1) (2) 1.00 (0.00 (48.60 (20.96 (1152.60 (20.00) 7.95) 149.00) 48.26 (0.83 (32. 1. 6. in respect of the related parties have been written off/back. 5. PSUs FIs Banks Private Corporate Subsidiaries/Joint ventures Others (Net of Provision) including Mutual Funds Provision held towards depreciation Total (3) 60. K G Karmakar – Managing Director Name of the Party Nature of Relationship Key Management Personnel– Chairman Key Management Personnel–Managing Director Nature of Transaction Remuneration including perquisites Remuneration including perquisites Amount of transaction during the year 0.23) (7) 60.44 (2.00) 48. 26.23) (0.00) – – 20. 2.00 (60.96 (1152.00 (48.95) – – – 1.15 Issuer categories in respect of investments made (Rs.35) 0.00) 48.44 (2. in crore) Outstanding Shri U C Sarangi – Dr. in crore) Sr. Issuer No.83 (140.

in Crore) Total Deposits of twenty largest depositors Percentage of Deposits of twenty largest depositors to Total Deposits of the Bank 57661.20 Movement of Gross NPAs Particulars Gross NPAs as on 1st April of particular year (Opening Balance) Additions (Fresh NPAs) during the year Sub-total (A) Less:(i) Upgradations (ii) Recoveries (excluding recoveries made from upgraded accounts) Write-offs Amount in Rs. in Crore) Total Exposure to Top four NPA accounts 32.85 0.00 0. Refinance: Includes Loans and Advances given to State Governments.00) Daily average outstanding during the year 0.30 (0.87 53.94% 26. in Crore) Total Exposure to twenty largest borrowers/ customers Percentage of Exposure to twenty largest borrowers/customers to Total Exposure of the bank on borrowers/customers 67384. (d) Concentration of NPAs (Rs.17 Disclosure on Repo transactions (Rs.22 Off-balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms) : NIL (NIL) 26.00 (0.00) 0.82% Sub-total (B) Gross NPAs as on 31st March of following year (closing balance) (A-B) (c) Concentration of Exposure (Rs. Land Development Banks. in Crore) Total Advances to twenty largest borrowers Percentage of Advances to twenty largest borrowers to Total Advances of the Bank 67384.02 (275. crore) Particulars Minimum outstanding during the year 0.58 0.16 Non performing investments: NIL (NIL) 26.00 ii) 128 . Advances.02 26.75) Outstanding as on 31 March 2010 0.73 (b) Concentration of Advances (iii) (Rs.00) 1. Banks. State Coop. Regional Rural Banks etc.61 55.26.54 82. Medium and Large) Services Personal Loans Percentage of NPAs to Total Advances in that sector 0.19 Sector-wise NPAs S.00 2.00) 476.00) Securities sold under repo Securities purchased under reverse repo 26. Exposure and NPAs (a) Concentration of Deposits (Rs.00 (0.02 (275. Commercial Banks.00 (0.00 (0.00 2.85 50.23 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. as refinance against the loans disbursed by them to the ultimate borrowers.61 51.00 0.38% 26.00) 476. Crore 44. co-finance loans and loans given to voluntary agencies/non– governmental organisations for developmental activities.18 Concentration of Deposits.71 8.21 Overseas Assets.00) Maximum outstanding during the year 0. Sector No 1 2 3 4 Agriculture and allied activities Industry (Micro & Small.00 (0.44 0. NPAs and Revenue: NIL (NIL) 26.

69 (1.79) 23.94 (2.86 (19. K. May 26.42 (1.46) 11.54) 60.53) 1. Karmakar Managing Director Dr.01) 1.86) Unallocated 19.36.272. Chakrabarty Director Shashi Rekha Rajagopalan Director 129 .21 (11.695.36) 73.18.18) -0. 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.iii) Tr e a s u r y : I n c l u d e s i n v e s t m e n t o f f u n d s i n treasury bills.21) 12.13 (1.87) 61.76) 11.11) (b) Information on Primary Business Segment Direct Finance 3.36.33 (51.227.176.434.29 (21.10 (1.94) (c) Since the operations of the Bank are confined to India only there is no reportable secondary segment.45 (1.36) 1.198.99 (121.281.292.12 (47.964.18 (18.00 (0.00) 96.23 (1.18.60) 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 0 0.04) 239.11) 1.07) 0 0. May 25.987.82 (192. K.45) 55.642.59 (16.81 (54.181.68 (0.389.519.04) Total 7.12 (118.37 (64.564.68) 2.61) Refinance 3.00) 17. 2010 Umesh Chandra Sarangi Chairman Dr. As per our attached report of even date Khimji Kunverji & Co Chartered Accountants Hasmukh B Dedhia Partner Mumbai Mumbai.393. C.42 (45.48 (16.985.80 (7. (Rs.08) 20. in Crore) Treasury 1.798. government securities.96 (9.13 (1.03) -525.46) 60.039.283.248.307. short-term deposits.21 (11.295.678.176.292.128.255.92) 1.00 (-596. etc.34 (47.00 (0.58 (3.265.222.G.79) 41.65) 0 18.337. 2010 S Akbar Chief General Manager Accounts Department Mumbai.54) 186.48 (39.37) 372.050.

50.National Bank for Agriculture and Rural Development Cash flow for the year ended 31 March 2010 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) 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 Proceeds of Bonds Increase / Decrease in Borrowings Increase / Decrease in Deposits Grants / contributions received 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 1.11.14.206 908.720 25.000 (-) 20.579 169.931 420.538 (-) 808.78.160 679.48.24.45.68.00.69.27.786 18.429 17868.019 (-) 793.96.34.269 (-) 3617.30.35.644 908.14.811 185.783 533.59.78.23.55.739 (-) 1255.503 864.76.45.93.67.670 61.098 (-) 10.258 (-) 20857.68.946 (-) 41569.75.96.92.18.33.57.82.689 628.16.41.53.17.04.955 4525.13.11.74.226 (-) 16067.95.483 2009-2010 11.21.680 68.75.77.689 Previous year’s figures have been regrouped/ rearranged to conform to the current year’s presentation.73.864 21.835 17.24.81.989 (-) 20001.540 101.42.04.000 (-) 7.04.50.90.00.25. 2010 Umesh Chandra Sarangi Chairman Dr.999 (-) 42168.26.000 (-) 8.41.88.46.41.26.36.806 21428.93.689 2008-2009 21.276 908.200 (-) 4996.09. (C) (B) (A) During 2009-10 2272.689 1110.53.23.63.90.653 (-) 11537.19.14.39.290 (-) 28605.24.16.97.10.89.663 (-) 1307.33.44.31. C. May 25.36. May 26.941 17.891 28682.61.300 0 628.218 23.93.41.36. K.756 1584.258 (-) 11. 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 Collateralised Borrowing and Lending Obligations Total 2.332 436. As per our attached report of even date Khimji Kunverji & Co Chartered Accountants Hasmukh B Dedhia Partner Mumbai.24.531 73.G.951 1255.098 (-) 12801.20.65.36.00.69.034 4037.59.53.16.69.092 132.70.555 (-) 431.29.58.953 12928.05.483 (Rupees) During 2008-09 1987.11.68. Karmakar Managing Director Dr. K.60.73.49.11.11.145 (-) 21785.34.94.29.228 (-) 3699.00.000 (-) 4.29.93.556 91.65. Chakrabarty Director S Akbar Chief General Manager Accounts Department Mumbai.40.41.056 8.85.425 1307.06. wherever necessary.67.61.70.49.603 37686.694 (-) 1207.21.48.932 (-) 29399.426 (-) 598.49.29.52.32.95.517 (-) 279. 2010 Shashi Rekha Rajagopalan Director 130 .38.166 22461.86.62.75.75.93.017 (-) 6610.

ABFL & NABFINS) 2009-2010 131 .Consolidated Balance Sheet Profit and Loss Account & Cash Flow of NABARD & its Subsidiaries (NABCONS. ADFT.

We believe that our audit provides a reasonable basis for our opinion. 3. as well as evaluating overall financial statements. Dedhia Partner (F-033494) Suit 52. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are prepared.com • Website: www. AND RURAL D EVELOPMENT 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. An audit also includes assessing the accounting principles used and significant estimates made by the management. Place: Mumbai Dated: May 26. of the consolidated cash flows of the Bank for the year ended on that date. Chartered Accountants Firm Registration No.400 001. evidence supporting amounts and disclosures in financial statements. the impact of which is not ascertained.com 132 . 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. 2010 For and on behalf of Khimji Kunverji & Co. 22661270. in accordance with an identified financial reporting framework and are free of material misstatement. of the state of affairs of the Bank as at March 31. on test basis. Bombay Mutual Building.42 crore and Rs15. 4. being unaudited. We did not carry out the audit of financial statements of subsidiaries of the Bank. India. These financial statements are the responsibility of the Bank’s management. The total Assets and total Revenues in respect of these subsidiaries are Rs 87. An audit also includes examining. 2.60 crore respectively. Mumbai . We conducted our audit in accordance with auditing standards generally accepted in India.khimjikunverji. the Consolidated Profit & Loss Account and the Consolidated Cash Flow Statement for the year ended on that date annexed thereto. and in the case of the Consolidated Cash Flow Statement. 2010. Telephones: +91 22 22662550. 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: a) b) c) in the case of the Consolidated Balance Sheet. 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. Chartered Accountants Auditors' Report on Consolidated Financial Statements To the Board of Directors NATIONAL BANK FOR AGRICULTURE 1. Our responsibility is to express an opinion on these financial statements based on our audit. Fort. and on the basis of the separate audited/ certified financial statements of the Bank and its Subsidiaries included in the consolidated financial statements. Sir Phirozshah Mehta Road. The financial statements of all the four subsidiaries. in all material respects. In our opinion.Khimji Kunverji & Co. 105146W Hasmukh B. These financial statements have been certified by the managements of the respective subsidiary companies and have been furnished to us. any adjustments to their balances could have consequential effects on the attached Consolidated Financial Statements. We report that on the basis of the information and explanations given and on the consideration of separate audited/ certified financial statements of the Bank and its Subsidiaries and subject to our comment in para 3 above. 2010. 5. 22662011 • Fasimile: +91 22 22664045 E-mail: info@khimjikunverji. 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.

G.38.072 234.12.92.2009 PROPERTY AND ASSETS Cash and Bank Balances Investments Advances Fixed Assets Other Assets TOTAL PROPERTY AND ASSETS 9694.150 5176.39.686 As per our attached report of even date Khimji Kunverji & Co Chartered Accountants Hasmukh B Dedhia Partner Mumbai.34.628 23702.171 14018.94.48.581 20004.03.87.23.686 As on 31.11.000 9551.31.68.64.00.00.83.62. Donations and Benefactions Other Funds Minority Interest Deposits Bonds and Debentures Borrowings Current Liabilities and Provisions TOTAL FUNDS AND LIABILITIES 2000.59. Chakrabarty Director Shashi Rekha Rajagopalan Director 133 .000 149.03.43.08.124 4708.66.266 120512.72.National Bank for Agriculture and Rural Development Consolidated Balance Sheet as on 31 March 2010 (Rupees) Particulars FUNDS AND LIABILITIES Capital Reserve Fund and Other Reserves National Rural Credit Funds Funds Out of Grants received from International Agencies Gifts Grants.12.778 2974.78.661 5111.69.00.00.86.000 10695.08.260 2142.33.52.14.03.73.34.80.00.000 154.85.515 2101.194 136350.59.26.00.99.81.987 118206. C.52.987 3592.64.087 15983. K.00.241 4887.01.846 13.622 3764.94.569 69996.85.39.886 98858.84.22.02. Karmakar Managing Director Dr.97. May 26.2010 As on 31.533 15571.91.985 2108.588 12. 2010 Umesh Chandra Sarangi Chairman Dr.90.32.96.29.950 136350.12. 2010 S Akbar Chief General Manager Accounts Department Mumbai.45.501 247.312 4281.54.536 118206.45.12.42.00. K.171 2000.475 52127.31.84.379 2735.61.98. May 25.65.02.

46.000 3.34.51.80.33.50.00.084 0 1564.39.30.35.46.683 42.10.570 48.570 92.26.17.480 70.61.10.00.00.28.000 46.477 1395.064 9.450 1634.50.66.310 509.82.00.95.861 5694.30.000 3.59.566 21.46.657 9.81.73.99.00.13.319 1563.000 400.00.00.50.88.247 649.58.58.34.50.240 7980.49.43.03.004 80.889 5699.58.00.49.672 60.48.47.66.90.000 684.910 1443.784 80.207 1218.95.330 23.03.149 554.504 31.434 1395.18.000 0 0 96.000 18.73.01.20.72.01.000 32.15.614 2281.957 340.03.43.00.04.65.66.71.65.01.93.80.00.450 1563.23.957 1443.045 1996.34.799 71.00.62.17.42.429 698.163 93.043 8.00.00.69.00.948 676.25.15.00.880 4988.05.335 1216.67.24.45.364 0 67.49.39.82.480 4255.000 10.National Bank for Agriculture and Rural Development Consolidated Profit and Loss Account for the year ended 31 March 2010 (Rupees) Particulars 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 Provision for Fringe Benefit Tax Deferred Tax Asset Adjustment Short / (Excess) provision for Income Tax in earlier years 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.887 5069.00.54.67.00.25.000 400.641 66.90.993 2009-10 2008-09 134 .62.38.14.373 1634.13.77.50.544 64. 1961 National Rural Credit (Long Term Operations) Fund National Rural Credit (Stabilisation) Fund Co-operative Development Fund Research & Development Fund Investment Fluctuation Reserve Financial Inclusion Fund Financial Inclusion Technology Fund Farm Innovation and Promotion Fund Farmers Technology Transfer Fund MFDEF Reserve Fund Reserve Fund Total 350.55.40.14.67.726 (-) 80.17.98.885 3.645 42.00.17.599 30.397 1396.00.83.76.74.55.57.84.246 132.570 6654.00.000 10.62.544 7065.76.

C.21) 12985.86) Unallocated 32.35 (706.92) 1198.18% (0. Karmakar Managing Director Dr..43) 136350.52 (39.27 23.03 (0.68 (0.00 *NABARD controls the Board of Directors of Agri Business Finance (AP) Ltd. and NABARD Consultancy Services (Private) Limited has provided depreciation on fixed assets by adopting Straight Line Method (SLM) at the rates specified in Schedule XIV to the Companies Act. 1956. Thus out of the total depreciation of Rs.37 41.41) Refinance 3393.48 (16434. Disclosures as required under AS-17 “Segment Reporting” in consolidated financial statements are as under: (Rs.Additional Notes to Consolidated Accounts 1. Consolidation has been done pursuant to the listing agreement with stock exchange. are unaudited.82* 82. 2010 Dr.04) 239.13 (120. 1956 by Agri Development Finance (Tamilnadu) Ltd and Agri Business Finance (AP) Ltd.84) 136350.84) 5. The amount of such fees receivable is not material.36 (-589.69 (1307.21 ”Consolidated Financial Statement” Depreciation on fixed asset is provided on Written Down Value Method (WDV).34 crore (21.13 (118206. 0.18 (18.94 (1693) 20320.18) (-) 0. in crore) Financial Year 2009-10 (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) Direct Finance 3298. Details of the subsidiaries: Name of the Subsidiary Agri Development Finance (Tamilnadu) Ltd.30) -518.36) 1227.82 (192.(AS) .11 (1996.G. Ltd. Chakrabarty Director Shashi Rekha Rajagopalan Director Umesh Chandra Sarangi Chairman 135 .34 (47. 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. 0. 6. whereas NABARD Financial Services Ltd.10 47.06 (9.and hence considered as a subsidiary. NABARD Financial Services Limited NABARD Consultancy Pvt.97) Total 7980.02) 18. NABARD Financial Services Limited.62) 0.66) 18.90 (45814.37 (64.45) 55128. 7.32 (27. Previous Year figures have been regrouped / rearranged wherever necessary As per our attached report of even date Khimji Kunverji & Co Chartered Accountants Hasmukh B Dedhia Partner Mumbai.41 100. K. K.13 (118206. Agri Business Finance (AP) Ltd.60 (47711. at the rates specified in Schedule XIV to the Companies Act.75) 11.10 0 96.33 (51039. Country of Incorporation India India India India Proportion of Ownership 52.47) 2281.17%) 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.38 (19262.35) 60661.37) 73.23.81 (54265. NABARD Consultancy Services Limited and Agri Business Finance (AP) Ltd.46) 11.30 (21. 4.10 (1283.49) Note: There are no reportable secondary segments for the bank and its subsidiaries 8.23 (1181.75 (2340. 1956 on prorata basis. Income on foreign assignments by NABCONS is accounted on “receipt” basis. May 26.43) 1602.58) 187.58 (3389.78) 60538.09 (122. 2.87) 61222.40 crore) included in the Consolidated Financial Statement.60) Treasury 1255. Financial statement in respect of Agri Development Finance (Tamilnadu) Ltd.89) 374. 3. 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 infra-group balances and intra-group transactions in accordance with Accounting Standard . 2010 S Akbar Chief General Manager Accounts Department Mumbai. May 25.

646 (-) 3699.54.000 61.092 132.556 (-) 12801.653 (-) 11528.63.70.00.41.39.25.81.79.41.59.00.39.96.541 2008-09 27.79.69.521 (-) 42161.42.85.63.32.68.989 (-) 19992.603 (-) 29.627 (-) 432.28.867 S Akbar Chief General Manager Accounts Department Mumbai.091 73.877 (-) 795.000 (-) 4.833 68.873 1307.44.80.27.24.23.46.300 0 649.95.32. C.41.716 (-) 16067.03.83.611 (-) 4996.41.69.03.00.48.32.30.34.50.81.740 (-) 57.96.900 (-) 41560.640 (-) 21790.93.91.68.276 911.24.541 649.01.16.41.49. 2010 (B) (A) (-) 29381. Chakrabarty Director Shashi Rekha Rajagopalan Director Umesh Chandra Sarangi Chairman 136 .52.85.23.87.486 436.93.056 9.29.541 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 (b) Cash flow from Investing Activities Income from Investment Increase / Decrease of Fixed Assets Increase / Decrease in Investments Net cash used in investing activities (c) Cash flow from Financing Activities Proceeds of Bonds 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 Khimji Kunverji & Co Chartered Accountants Hasmukh B Dedhia Partner Mumbai.94.33.481 698.50.784 554.000 91.93.47.285 173.33.49.161 12928.96.694 (-) 1207.24.247 23.996 1255.23.33.40.20.71.42.45.97. K.82.60.61.25. May 25.78.799 (-) 20857.078 420.087 22461.098 (-) 10.21.806 21424.79.86.00.00.87.352 (-) 601.23.50.G.950 25.39.24.24.675 (-) 262.90.33.69.62.40.164 18. May 26.53.06.40.810 185.61.49.875 37682.42.642 1109.03.71.807 (-) 1255.10.43.79.119 1996.51.National Bank for Agriculture and Rural Development Consolidated Cash Flow Statement for the year ended 31 March 2010 (Rupees) 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 During 2009-10 During 2008-09 2281.246 17.93.37.79.391 (-) 58.19.74.965 (-) 808.867 2009-10 21.90.488 911.000 (-) 8.660 (-) 7.48.33.95.422 863.11.947 4527.756 1591.540 101.098 (-) 20.598 (-) 28586.675 911.948 21.50.90.629 17863.07.21. Karmakar Managing Director Dr.74. K.660 (-) 11.663 0 (-) 1307.60.56.315 (-) 3615.87.47.63.750 28683.36.41.93.45.526 (-) 6610.400 4033.940 17. 2010 Dr.55.35.

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Act BIRD BRAMHA CAB CAGR CAS CAT CBP CDF CEO CISS CD CLA CRIDA CP CPIO CRR CSA CSO DAP DCCB DDM DRIP ERR FC FCI FIF FITF FIP FIPF FRP As Applicable to Co-operative Societies Agricultural Co-operative Staff Training Institute/s Agriculture Debt Waiver and Debt Relief Scheme Accelerated Irrigation Benefit Programme Agricultural and Processed Food Products Export Development Authority Agriculture Produce Marketing Committee Automatic Refinance Facility Agriculture Technology Management Agency Bharatiya Agro Industries Foundation Block Level Bankers’ Committee Banking Regulation Act Bankers Institute of Rural Development Business Revitalisation and Managing Human Aspirations College for Agriculture Banking Compount Annual Growth Rate Common Accounting System Capacity Building for Adoption of Technology Capacity Building Phase Co-operative Development Fund Chief Executive Officer Capital Investment Subsidy Scheme Certificate of Deposits Central Loan Assistance Central Research Institute for Dryland Agriculture Commercial Paper Central Principal Information Officer Cash Reserve Ratio Co-operative Societies Act Central Statistical Organisation Development Action Plan District Central Co-operative Bank District Development Manager District Rural Industries Project Economic Rate of Return Farmers’ Club Food Corporation of India Financial Inclusion Fund Financial Inclusion Technology Fund Full Implementation Phase Farm Innovation and Promotion Fund Fair and Remunerative Price MoFPI MoRD MFI MI MIS MITTRA MoA MEPA mF MFDEF ha. HRD HO HWG ICAR IDP IGWDP ILR IMF IRV IT JLG JLTC KCC KfW KVK LPA LT LTCCS MEDP FRR FTTF GCF GCFA GDCF GDI GDP GFCE GFCF GLC GoI GTZ Financial Rate of Return Farmers’ Technology Transfer Fund Gross Capital Formation Gross Capital Formation in Agriculture Gross Domestic Capital Formation Gross Domestic Investment Gross Domestic Product Gross Fixed Consumption Expenditure Gross Fixed Capital Formation Ground Level Credit Government of India Deutsche Gesellschaft fur Technische Zusammenarbeit Hectare Human Resource Development Head Office Handloom Weavers’ Group Indian Council of Agricultural Research Integrated Development Plan Indo-German Watershed Development Programme Internal Lendable Resources International Monetary Federation Individual Rural Volunteer Information Technology Joint Liability Group Junior Level Training Centre Kisan Credit Card Kreditanstalt fur Wiederaufbau (German Development Bank) Krishi Vigyan Kendra Long Period Average Long-term Long-Term Co-operative Credit Structure Micro-Enterprise Development Programme Micro-Enterprise Promotion Agency Micro-Finance Micro-Finance Development and Equity Fund Micro-Finance Institution Minor Irrigation Management Information System Maharashtra Institute of Technology Transfer for Rural Areas Ministry of Agriculture/Memorandum of Agreement Ministry of Food Processing Industries Ministry of Rural Development 139 .LIST OF ABBREVIATIONS AACS ACSTI/s ADWDR AIBP APEDA APMC ARF ATMA BAIF BLBC B.R.

a.MoU MSP MSME MT NABARD Nabcons NAIS NBSC NBTC NER NFSM NGO NHM NIMC NPA NPK NRC (LTO) NREGS NRRDA NSSO ODI OSAO p. PACS PCARDB PDS PFCE PLP PLI PLR PPID PRI PUCB PWCS R&D RBI REDP RFA RFI RIDF RNFS Memorandum of Understanding Minimum Support Price Micro Small and Medium Enterprises Medium-term/Metric Tonne National Bank for Agriculture and Rural Development NABARD Consultancy Services National Agricultural Insurance Scheme National Bank Staff College National Bank Training Centre North-Eastern Region National Food Security Mission Non-Governmental Organisation National Horticulture Mission National Implementing and Monitoring Committee Non-Performing Asset Nitrogen Phosphorous Potash National Rural Credit (Long-Term Operations) National Rural Employment Guarantee Scheme National Rural Roads Development Agency National Sample Survey Organisation Organisation Development Intervention Other than Seasonal Agricultural Operations per annum Primary Agriculture Credit Society Primary Co-operative Agriculture and Rural Development Bank Public Distribution System Private Final Consumption Expenditure Potential Linked Credit Plan Primary Lending Institution Prime Lending Rate Pilot Project for Integrated Development Panchayati Raj Institution Primary Urban Co-operative Bank Primary Weaver’s Co-operative Society Research and Development Reserve Bank of India Rural Entrepreneurship Development Programme Revolving Fund Assistance Rural Financial Institution Rural Infrastructure Development Fund Rural Non-Farm Sector RO RIF RPF RRB RSVY RTC RUDSETI SAA SAMIS SAO SC/ST SCARDB SCB SCC SDC SDP SEWA SF/MF SFP SGSY SHG SHPI SLBC SLR SME SMP SO SSI ST STCCS TDF TE TFO TOR TOT TPDS UT VDP VWC WBCIS WDC WDF WPI WTO WUA Regional Office Rural Innovation Fund Rural Promotion Fund Regional Rural Bank Rashtriya Sam Vikas Yojana Regional Training Centre Rural Development and Self-Employment Training Institute Service Area Approach Service Area Monitoring and Information System Seasonal Agricultural Operations Scheduled Caste/Scheduled Tribe State Co-operative Agriculture and Rural Development Bank State Co-operative Bank Swarozgar Credit Card Swiss Agency for Development and Cooperation Skill Development Programme Self-Employed Women’s Association Small Farmers/Marginal Farmers State Focus Paper Swarnjayanti Gram Swarozgar Yojana Self-Help Group Self-Help Promoting Institution State Level Bankers’ Committee Statutory Liquidity Ratio Small and Medium Entreprise Statutory Minimum Price Sub-office Small Scale Industry Short-term Short-Term Co-operative Credit Structure Tribal Development Fund Training Establishment Total Financial Outlay Terms of Reference Training of Trainers Targeted Public Distribution System Union Territory Village Development Programme Village Watershed Committee Weather Based Crop Insurance Scheme Women Development Cell Watershed Development Fund Wholesale Price Index World Trade Organisation Water Users’ Association 140 .