Nabard disburses Rs 1.8 lakh cr Short term refinance

During FY 2024, of the total Short term refinance of Rs 1.8 lakh crore, 73.3% was disbursed to state cooperative banks (StCBs).

“Disbursements under ST credit support of NABARD increased by 15% over FY2023. Short-term facility to cooperatives increased by 15% whereas disbursement to RRBs and SFBs combined, increased by 16% during FY2024”, reveals the Nabard annual report for the year 2023-24.

Besides, In terms of region-wise trends, the southern region has received the largest proportion of Short Term refinance at 42.1%, followed by north (18.7%), central (17.1 %), and the east (14.3%). The western region has a very small share (7.5% ) in ST refinance disbursement.

As far as Long Term refinance is concerned, Disbursements under LT refinance touched Rs 1.3 lakh crore during FY2024, registering an increase of 23.8%. A sizable share (67%) of the disbursement went to SCBs including SFBs, followed by StCBs (13%) and RRBs (10%).

“Regional disparity is visible even in LT refinance as the major share of refinance offtake was in the south (39.6%), followed by the west (21.3%), north (17.5%), central (10.6%), east (9.7%), and the north-east regions (1.4%)”, the report informed.

The government has been fixing annual targets for GLC for the agriculture sector by scheduled commercial banks (SCBs), regional rural banks (RRBs), and rural cooperative banks (RCBs).

During FY2024, Rs 25.1 lakh crore (provisional) has been disbursed, against the target of Rs 20 lakh crore, thus overachieving the target by 25%. Significantly, much of the incremental agricultural GLC was extended by SCBs.

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