NABARD Overview and Financial Mobilization FY2024

Questions and Answers

What was the reported balance sheet size of NABARD as of 31 March 2024?

₹9 lakh crore (correct)

₹7.5 lakh crore

₹10 lakh crore

₹8 lakh crore

What was the growth rate of NABARD's balance sheet from FY2023 to FY2024?

13.6% (correct)

12.5%

10.3%

15.1%

What is one of the primary purposes of the funds raised by NABARD during FY2024?

Increasing ground level credit for rural production (correct)

Developing urban infrastructure

Financing private enterprises

Providing global economic assistance

Which type of loans is NABARD specifically known to provide to farmers?

Short-term seasonal agricultural operation loans Signup and view all the answers

What milestone did NABARD achieve with the issuance of social bonds in FY2024?

India’s first rupee-denominated social bond Signup and view all the answers

For which of the following purposes does NABARD NOT provide refinance?

Financial support for urban housing Signup and view all the answers

Which of the following best describes NABARD's focus since its inception?

Sustainable development of the rural sector Signup and view all the answers

When was the listing ceremony for NABARD's maiden social bond conducted?

29 September 2023 Signup and view all the answers

Which entities are eligible for loans from NABARD for infrastructure creation?

State governments and state-owned corporations Signup and view all the answers

How much was the bond issue amount for NABARD's social bonds?

₹1,000 crore Signup and view all the answers

What role does NABARD play regarding cooperative credit institutions?

It lends directly to state governments for their share capital Signup and view all the answers

NABARD's funds for cash and investment management are primarily utilized for what?

Creation of fixed assets for business operations Signup and view all the answers

Where was the listing ceremony for NABARD's social bond held?

Bombay Stock Exchange Signup and view all the answers

What aspect of social sector development can NABARD's funds address?

Infrastructure for educational institutions Signup and view all the answers

Which aspect of investment did NABARD pioneer in India?

Environmental, social, and governance (ESG) investing Signup and view all the answers

What type of loan conversion does NABARD support in the event of natural calamities?

From short-term loans to medium-term loans Signup and view all the answers

What is a specific focus of NABARD in terms of investment management?

Managing investments in rural credit Signup and view all the answers

Which of the following is NOT included in NABARD's development agenda?

Urban real estate development Signup and view all the answers

What was the total amount allocated by the Government of India for RIDF in FY2024?

₹40,475 crore Signup and view all the answers

How much did NABARD mobilise in FY2024?

₹49,730 crore Signup and view all the answers

What percentage of NABARD's total borrowing portfolio was made up by commercial papers, term loans, and non-convertible debentures?

94% Signup and view all the answers

What was the total outstanding borrowings of NABARD as of 31 March 2024?

₹4.9 lakh crore Signup and view all the answers

How much was issued in bonds during FY2024?

₹65,393 crore Signup and view all the answers

What was the outstanding under the Warehouse Infrastructure Fund (WIF) at the end of FY2024?

₹3,890 crore Signup and view all the answers

What amount did NABARD repay under Food Processing Fund (FPF) deposits during FY2024?

₹70 crore Signup and view all the answers

What was the total mobilised corpus of NABARD as of 31 March 2024?

₹3.5 lakh crore Signup and view all the answers

What was the amount of term loans borrowed from commercial banks during FY2024?

₹82,450 crore Signup and view all the answers

How much was repaid in various tranches under RIDF deposits during FY2024?

₹25,598 crore Signup and view all the answers

What percentage increase in net surplus has been appropriated by FY2024 compared to FY2023?

24% Signup and view all the answers

Which fund is NOT mentioned as one of the various funds maintained in NABARD?

Renewable Energy Fund Signup and view all the answers

In FY2024, what was the profit before tax reported?

6,555 crore Signup and view all the answers

What was the net profit per employee for FY2023?

1.7 Signup and view all the answers

What aspect of NABARD's strategy is highlighted regarding investments in the agriculture and rural ecosystem?

Enhancing credit flow Signup and view all the answers

What does CFF stand for in the context of financial terms?

Credit Facility to Federations Signup and view all the answers

Which of the following represents loans outstanding of ₹48,819 crore as of 31 March 2024?

Loans under PMAY–G Signup and view all the answers

Which bank type is most directly mentioned as a part of the rural financial system?

District Central Cooperative Bank Signup and view all the answers

What percentage of assets does the PMAY–G loans extend according to the outstanding figures?

5.4% Signup and view all the answers

As of 31 March 2024, what is the outstanding figure for loans under RIDF projects?

₹1.7 lakh crore Signup and view all the answers

Which program is associated with the loans amounting to ₹12,298 crore?

Pradhan Mantri Awaas Yojana Signup and view all the answers

The term 'SBM–G' refers to which initiative?

Swachh Bharat Mission – Grameen Signup and view all the answers

What does the abbreviation RRB stand for?

Regional Rural Bank Signup and view all the answers

Which term describes short-term loans for agricultural operations?

ST (OSAO) Signup and view all the answers

How much growth in percentage has the loans for RIDF projects experienced over the last year?

10.3% Signup and view all the answers

Study Notes

NABARD Overview

As of March 31, 2024, NABARD's balance sheet exceeds ₹9 lakh crore, reflecting a growth rate of 13.6% over FY2023.
NABARD issued India's first rupee-denominated social bond, emphasizing its leadership in environmental, social, and governance (ESG) investing.

Funding and Financial Mobilization

The Government of India allocated ₹40,475 crore for the Rural Infrastructure Development Fund (RIDF) in FY2024.
NABARD mobilized ₹49,730 crore and repaid ₹25,598 crore under RIDF deposits during FY2024.
Total mobilized corpus at the end of FY2024 stood at ₹3.5 lakh crore, with outstanding borrowings of ₹4.9 lakh crore.

Borrowing Portfolio

94% of NABARD's total borrowing portfolio consists of commercial papers, term loans, and non-convertible debentures.
Issued bonds worth ₹65,393 crore in FY2024, with a redemption amount of ₹25,920 crore, signifying a 32.6% increase in outstanding bonds compared to FY2023.

Uses of Funds

NABARD funds are directed towards rural production, infrastructure, social sector development, cash management, and creation of fixed assets.
Provides loans to rural financial institutions to enhance ground-level credit (GLC) for seasonal agricultural operations and capital investment.

Loan Facilities

NABARD offers refinance options for weavers, artisans, and for converting short-term loans into medium-term loans during natural disasters.
Direct lending to state governments to contribute to share capital of cooperative credit institutions, facilitating social and infrastructure projects.

As of March 31, 2024, loans outstanding under the Pradhan Mantri Awaas Yojana–Gramin (PMAY–G) totaled ₹12,298 crore.
Infrastructure financing for RIDF projects reached ₹1.7 lakh crore, representing 20% of assets and an increase of 10.3% over the previous year.

Income and Profitability

Gross income for FY2024 recorded at ₹48,847 crore with a profit before tax of ₹8,068 crore.
Net profit after tax amounted to ₹6,103 crore, indicating a profitable FY2024.

Efficiency Metrics

Capital-to-risk weighted assets ratio was reported at 16.89% for FY2024.
Business per employee was noted at ₹138.4 crore, while net profit per employee stood at ₹1.9 crore.

Investments in Agriculture and Rural Ecosystem

NABARD collaborates with strategic partners through equity investments aimed at enhancing credit flow and bolstering the agriculture and rural sector.

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Description

This quiz covers key aspects of NABARD's operations and financial performance as of FY2024. It highlights significant growth in NABARD's balance sheet, funding allocations for rural development, and the structure of its borrowing portfolio. Test your knowledge on NABARD's funding strategies and their impact on rural infrastructure.