National Bank for Agriculture and Rural Development (NABARD)
31 Jan 2000
- Bond issue - Rs. 48.8 crore Rating : AAA (Reaffirmed)
- Bond issue - Rs. 30.4 crore Rating : AAA
The rating of NABARD is supported by its strong policy role of refinancing rural credit, which results in continued support from government. The government support is demonstrated in the form of 100% ownership by RBI & GoI, regular infusion of equity capital, allocation of tax-free and SLR bonds, asset quality protection and tax exempt status for NABARD. The rating also derives strength from very favourable capital adequacy, high profitability and healthy internal accruals.
NABARD was set up to provide credit for agriculture and rural development and it serves as the apex body involved in policy, planning and credit dispensation for these activities. NABARD is the refinancing institution to the banks for providing short-term credit and term loans for agriculture and rural infrastructure related activities. Additionally, NABARD has over the years, acquired a development role in providing credit in the rural areas to those who are not reached by formal banking and credit facilities, through promotion of Self Help Groups. NABARD reported a PAT of Rs. 117.81 crores in 1998-99 and had an asset base of Rs. 28985.81 crores as at March 31, 1999.
