NABARD Subsidiary Performance Report PDF

For Internal Use only IV. Subsidiaries 1. NABCONS NABARD Consultancy Services (NABCONS), a wholly-owned subsidiary of NABARD has been providing consultancy in agriculture, rural developmen...

For Internal Use only IV. Subsidiaries 1. NABCONS NABARD Consultancy Services (NABCONS), a wholly-owned subsidiary of NABARD has been providing consultancy in agriculture, rural development and allied areas since 2003, with its Corporate office at New Delhi, 04 Zonal Offices at Mumbai, Hyderabad, Guwahati & Jaipur and 31 Principal Consultant’s offices across all States. NABCONS, has more than 3,000 assignments to its credit, 300 full-time staff, 500 empanelled experts and over 500 clients across India & globally. Over the last 3 years NABCONS has grown exponentially from modest revenues of Rs 75 crore in 2020-21 to Rs 238 crore (provisional) in 2023-24. 1. Performance in FY 2023-24 Brief highlights of business performance of NABCONS for FY 2023-24 is indicated below: A. Business Contracted i. During FY 2023-24, NABCONS has contracted business of ₹ 239.60 crore (106.5%) against a target of ₹225 crore, registering an increase of 34% over previous year. ii. Being the preferred consultancy company for State Governments, 67% of the total number of assignments contracted were from them, 14% from NABARD, 8% from banks & financial intuitions and 4% from the Government of India and its Agencies, and the remaining 7% from other clients such as private agencies, international agencies etc. iii. During the current year, NABCONS focused on contracting high-value long-term assignments of national importance as a part of the business strategy for the continuous flow of revenue streams. Accordingly, NABCONS has contracted 60 high-value assignments with an average ticket size of ₹3.00 crore. B. Revenues and Business Execution i.In FY 2023-24, total revenues of the company were ₹238.12 crore, an increase of more than 68% over previous year. ii. On execution side, in FY 2023-24, NABCONS generated income from assignments of ₹ 231.83 crore (144%) crore against a target of ₹ 160 crore, registering an increase of 70% over previous year. C. Notable Assignments i. Development of Kerala Krishi Hub (Kerala Agristack) and Kerala Integrated Agriculture Data Hub and Digitial Farmer Services Platform ii. Preparation of DPR and EPC activities for Pilot Project under the Grain Storage Scheme of GoI in 24 states iii. Developing Carbon Credit Framework for the Small Holder farmers in Goa and Karnataka iv. Project Design and Management Consultants (PDMC) for various infrastructure projects under SWACH, Rajasthan v. Preparation of Strategic Investment Plan (SIP) under Raising and Accelerating MSME Productivity (RAMP) scheme in Uttar Pradesh vi. Setting up Project Management Unit (PMU) for monitoring, coordination and assisting in implementation of Agri-Rural & Gangey Gram Rural Tourism Projects in Uttar Pradesh. 91  For Internal Use only vii. End-to-End study of WDRA's operations to review the pain points in the growth of eNWR based pledge financing viii. Survey and Investigation of Shahdara drain under the project for rejuvenation & conservation of the drain with nature-based treatment-Soil Bio-Technology” under Namami Gangey Mission ix. Monitoring and Evaluation of works carried out under Himachal Pradesh State Compensatory Afforestation Fund Management and Planning Authority (CAMPA) for 2016-17 to 2020-21 x. Social Impact Assessment study of CSR Program/Activities completed in the 2020-21 undertaken by Satluj Jal Vidyut Nigam (SJVN) under its CSR initiatives xi. Preparation of DPRs under Jal Jeevan Mission at West Bengal, Rajasthan and Karnataka xii. Preparation of DPRs under Atal Mission for Rejuvenation and Urban Transformation 2.0 (AMRUT 2.0) at West Bengal & Rajasthan xiii. Project Management Consultants (PMC) under Jal Jeevan Mission at Maharashtra & Karnataka xiv. Third Party Inspection Agency (TPIA) under Jal Jeevan Mission at Madhya Pradesh, Rajasthan and Maharashtra 92  For Internal Use only 2. NABFINS 1. Legacy of NABFINS NABFINS Limited, a subsidiary of NABARD was incorporated in 1997 under the Companies Act 1956/ 2013 with a vision to evolve a model microfinance institution to serve the needy and disadvantaged sections of the society in rural, semi-urban, and urban areas for securing their prosperity through easily accessible credit at an affordable cost. The Company started its journey into microfinance loans in 2009 and got NBFC-mFI licence from RBI during 2015 to further scale up its operations. 2. Reaching the unreached and underserved Since inception, NABFINS extended its services to more than 28 lakh households with micro credit flow of over ₹13,966 crore at the lowest rate of interest among the NBFC-MFIs. The Company operates through two different business models viz Business and Development Correspondent (B&DC) model and Direct Lending (DL) Model. Additionally to support other institutions’ effort to reach to the micro finance borrowers, the Company also extends bulk loans as well under Institutional Lending model. Presently, the Company has 402 branches and 122 active BC partne₹ In terms of long term strategy, Company has shifted its focus of expansion under Direct Lending model. 3. Performance during FY 2023-24 NABFINS has recorded a stellar performance by disbursing an amount of ₹2,723 crore during FY 2023-24, clocking growth of 48% over the previous FY 2022-23. Further, the Company has opened 75 new Direct Lending branches during the FY 2023-24, taking the total number of branches above 402. Having started business in Uttar Pradesh, Goa and Tripura in 2023-24, we are now present in 19 states. The balance sheet size and loan outstanding have crossed ₹3,260 crore and ₹3,033 crore respectively as on 31 March 2024. The PBT is ₹190 crore plus during the FY 2023-24 (provisional figures). The number of active borrowers has crossed more than eleven lakh. The monthly disbursements have crossed ₹300 crore in March 2024. During the FY 2023-24, NABFINS has covered lives of over 11.58 lakh borrowers and their co- obligants and ensured social security cover for the needy and poor. 4. Other Initiatives and recognitions during FY 2023-24 NABFINS has opened 3 all women branch in the state of Kerala, Karnataka & Tamil Nadu A pilot project was implemented to provide digital healthcare services to borrowers 5 project for skill development of women borrowers have been sanctioned with support from NABARD under MEDP programme. Sanctioned 11 projects worth ₹1.19 crore across 8 states under CSR. Recognising the CSR efforts, the Government of Tamil Nadu awarded NABFINS Ltd appreciating the CSR initiatives in Namakkal district, Tamil Nadu NABFINS received Data Excellence Award from CRIF High Mark which is one of the leading Credit Information Companies 5. Way Forward Revamp of Organisational structure with Zone/Regional Office setup New LMS software with multiple API integrations Expanding its operations footprints in new states and geographies New products to support the women borrowers graduating to micro-enterprises. 93  For Internal Use only 3. NABFOUNDATION Since its inception in August 2019, NABFOUNDATION has been successfully implementing various projects in its focus areas across the country. These projects have directly benefited 2000 Families including 35 SHGs, 80 Producer Companies, 35 Artisans, and 500 Tribal families across 116 districts including 18 aspirational districts, states in North East, and Union Territory of Ladakh. I. Major Initiatives during 2023-24 During the year NABFOUNDATION has successfully completed following Projects: o Project ‘NEW’ (NER Entrepreneurs’ World) for youth of NER states o Project ‘Bazaar Connect’ – Brand building and new marketing opportunities for FPOs. o ‘Project Cheriyal’ – Revival of the dying art of Cheriyal in Telengana o ‘Aapno Paani’ – Addressing drinking water issues in rural Rajasthan New projects sanctioned During the year, 33 new projects covering health and Hygiene, Sanitation, education, and livelihood with financial outlay of ₹25.14 crore was sanctioned to NABFOUNDATION covering the following broad areas. These new projects includes ‘Ujjwal Bhavishya ki Or’, the 1st fully funded project of NABFOUNDATION from private corporate. o Financial literacy / Financial Inclusion o Animal health Care o Addressing malnutrition in tribal area o Sanitation project in tourist area o Improved sanitation and drinking water facility in schools o Drinking water facility in tribal areas o Infrastructure facility for mentally retarded children in school o ICT lab for differently abled children o Empowering transgender community through entrepreneurial support o School soil health On-going Projects Apart from the new sanctions, the foundation continued to implement the following projects from out of earlier sanctions o My Pad My Right- Phase II for aspirational districts in the country o Basuba Brooms Producer Company Limited o Strengthening and Broad basing Pashmina and Wool Value Chain in Ladakh o Building Magahi Paan Value Chain o Project FAC (FPO As CSC) o Project ‘NIRMAL JAL’ 94  For Internal Use only II. Financials The amount sanctioned and utilized on the projects during 2023-24 is as under: New Sanction during 2023-24 Amount Utilised ₹ 25.14 crore 2.59 crore III. Other Highlights o Registration in NGO Darpan Portal: NABFOUNDATION registered itself on the NGO Darpan portal of NITI Aayog having registration number of MH/2023/0339637 o MoU with Adani Foundation: NABFOUNDATION entered into an MOU with Adani Foundation to take up activities in Natural Resource Management (NRM) and Climate Smart Agriculture (CSA), Women Empowerment thru Enterprise Development , Tribal Development Initiative and Off-Farm / Non- Farm Sector development o Trademark of MPMR Project: The trademark application of My Pad My Right project has been accepted by Trade mark Registry for publication in Trade mark Journal under Section 20(1) of Trade Mark Act,1999. o Networking: During the year, NABFOUNDATION enhanced its outreach to corporate partners like Bill & Melinda Gates Foundation, NTPC, Indian Oil, ICICI Bank Foundation, HDFC Bank Foundation, ASCI WASH Innovation Hub etc. to explore possible collaboration. 95  For Internal Use only 4. NABKISAN 1. 1. Targets vis-à-vis achievements (2023-24) Sanction (₹ crore) Disbursement (₹ crore) Business Vertical Target Achievement % ach. Target Achievement % ach. Activity based lending through 10 20.95 210% 10 22.95 230% NGOs/ Trusts / Sec 8 Companies NBFCs 750 1010.00 135% 750 1010 135% MFIs 600 541 90% 600 501 84% FPOs 150 186.52 124% 135 178.08 132% Agri Corporates 5 9 180% 3 8.79 293% PACS 5 12 240% 2 11 550% Total 1520 1779.47 117% 1500 1731.82 115% 2. FPO Loans A total of 905 FPOs were sanctioned loans directly during 2023-24. Total loans to FPOs since inception is indicated below. ( ₹ lakh) Year Direct Indirect Number of Sanctioned Number of Number of Sanctioned FPO loans Amount agencies FPO loans amount 2012-13 1 23 - - - 2013-14 - - - - - 2014-15 1 20 - - - 2015-16 7 347.5 3 57 1320.24 2016-17 42 1063.7 4 25 580 2017-18 95 3295.28 6 46 3365 2018-19 105 3662.76 4 50 2810 2019-20 162 5598.94 3 25 1250 2020-21 262 7789.03 3 103 3000 2021-22 413 9380.98 3 62 1500 2022-23 613 13278.91 2 30 1050 2023-24 905 18652.00 Cumulative 2606 63112.58 28 398 14875.24 As on 31 March 2024: Total number of FPO sanctioned loans – 3004 Quantum of FPO loans – ₹ 779.88 crore Total number of farmers impacted as on date – 1.5 million farmers across 20 states and 3 union territories. 96  For Internal Use only A. Key Achievements during 2023-24 NABKISAN, recorded a balance sheet size of ₹ 2804.54 crore (under IGAAP), representing an year-on-year increase of above 30%. The gross loan book outstanding of ₹ 2585.74 crore showed a year-on-year growth of about 35%, while the total sanctions and disbursements far exceeded the targets set by the Board, reaching ₹ 1,779 crore and ₹ 1,732 crore, respectively. NABKISAN has deepened in presence in all major states. As on date, the coverage extends to 20 States and 3 Union Territories. NABKISAN remains the leading NBFC lender to FPOs under the Government of India's Agri Infra Financing scheme. During the year, Nabkisan has sanctioned 24 loans under AIF worth ₹4.94 crore, including the sanctioning of the first drone project to one FPC. With this, NABKISAN has cumulatively sanctioned 102 FPC loans under AIF amounting to ₹15.22 crore. As the implementation partner for three FPC financing schemes of the Government of Tamil Nadu, NABKISAN provided financial assistance to the tune of ₹ 15.52 crore to 143 FPCs during the year. Nabkisan has also entered into MoU with the World Bank assisted ‘Tamil Nadu Rural Transformation Project’, Government of Tamil Nadu, for enabling credit linkage to FPOs promoted and supported under the project. In addition to this, Nabkisan is the implementation partner for Odisha Credit Guarantee Scheme for FPOs under which, NABKISAN has extended credit guarantee coverage to 114 FPOs amounting to ₹9.24 crore. To provide an impetus to the technology orientation in the agriculture sector, Nabkisan has entered into MoU with Villgro Innovations Foundation to provide funding to the start-ups incubated by them where Villgro shall provide a de-risking capital in the form of 15-25% of the loan value. In this line, Nabkisan has sanctioned two loans to Agri Start-ups to the tune of ₹2 crore. Nabkisan is an Eligible Lending Institution under GoI’s Credit Guarantee for FPO Financing scheme managed by NABSanrakshan Trustee Private Limited, Under the scheme, 619 FPCs were granted credit guarantee during the year amounting to ₹123.37 crore. During the year NABKISAN supported three socially relevant CSR projects worth ₹93 lakh. 97  For Internal Use only 5. NABSAMRUDDHI NABSAMRUDDHI Finance Limited (NSFL), incorporated under Companies Act, 1956 in 1997, is pre-dominantly a B2B finance NBFC subsidiary of NABARD, catering to the non- agriculture sector with an ESG focus. The Company’s operations are managed through a branchless model and a team of dedicated and passionate employees, 52% of whom are women. During 2021-22, the strategy of the company was revisited whereby Green & Wellness finance, Fabrics & Textiles and Handicrafts value chain were identified as focus areas so as to give it a more distinct character. These segments are aligned to NABARD’s mandate as well as National and Global priorities. Water Sanitation and Hygiene (WASH), which is a major sub-segment under Wellness finance, has emerged as champion segment for the Company. Major Initiatives of NSFL during FY 2023-24: NSFL jointly with Water.org organised a WASH Summit in September 2023 to bring together experts from the WASH and financial sectors to discuss the guidelines, opportunities and challenges as well as ESG aspects in climate ready WASH lending and find effective solutions. Further, NSFL co-sponsored the Sa-Dhan National Conference on Inclusive Growth held on 08 and 09 November 2023. During the event, NSFL’s pioneering Climate Ready WASH funding program was launched by Shri Shaji K.V., Chairmain, NABARD. The pilot program is supported by Special Concessional refinance from NABARD and technical support from knowledge partners such as Sa-dhan, Water.org, FINISH Mondial, among othe₹ NSFL signed MoU for collaborating with FINISH Mondial through Trust of People for promoting Climate Resilient WASH lending. NSFL participated in Water.org’s ‘Water Credit forum’ at Dhaka, Bangladesh during 18 to 19 December 2024 and ‘Cross learning visit’ on WASH financing to Kenya during 05 to 09 February, where the WASH financing model of the company was presented to international stakeholders, emanating into an invite to NABSAMRUDHI to set up their operations in these countries in the Global South. During 12-13 January 2024, the company participated in a climate smart wash exposure visit organised by WASH Innovation hub of ASCI in Hyderabad. A high level panel discussion on climate and WASH was instituted by the company at the Livelihoods India summit hosted by ACCESS Development Services on 19 January 2024 to take forward blended finance action planning. NSFL participated as panellists/speakers at various conclaves and workshops conducted by Sa-dhan, BIRD, Water.org, WASH innovation Hub, AMFI, DLAI, Access Development Services among others to support its champion segment “Water, Sanitation & Hygiene”. Company in association with its technical partner Trust of People (FINISH Mondial) had organized a 2 day exposure visit during 09 to 10 March 2024, for its NBFC/MFI partners and core WASH team for a study of the climate resilient WASH structures at Trichy, with grant support from DCAS, NABARD. With the grant support from OFDD, NABARD, NSFL in collaboration with Trust of People has launched a Climate Ready WASH awareness Campaign under its pilot programme for underlying rural borrowers of MFIs in climate vulnerable districts spread over 7 States, starting from 22 March 2024. 98  For Internal Use only The first phase of the campaign was kickstarted by Shri Shaji K.V., Chairman, NABARD during an event held jointly with OFDD, NABARD, to commemorate World Water Day on 22 March 2024, at NABARD Head Office, Mumbai. The first camp was organised at Nadia branch of Grameen shakti MFI and attended by 100 end borrowe₹ Further, an MOU was also signed with Climate Policy Initiative on World Water Day to take forward climate financing. During the year NSFL supported 3 CSR projects amounting to Rs 69.02 lakh for WASH segment and education & skill development. Business highlights of FY 2023-24 NABSAMRUDDHI witnessed record breaking financial performance during FY24 with a 60% YoY growth in Balance sheet and Assets under Management (AUM) to ₹ 1855 crore and ₹ 1804 crore respectively, while recording a 38% YoY growth in Profits after Taxes (PAT) to ₹ 48 crore, overachieving targets by 18%. The asset quality of the company improved to its best ever, with GNPA as a percentage of loan outstanding reducing from 0.47% as on 31 March 2023 to 0.14% as on 31 March 2024 through collections and expansion in loan book. The company managed second successive year of NIL delinquencies. Total disbursements including PTCs increased from Rs 715.98 crore in FY 23 to Rs 1383.50 crore in FY 24. Disbursement towards focus segments was ~40% of total disbursement during the year. Cumulatively~₹350 crore of WASH loans have been disbursed through 32 partners, while disbursements during the year recording ~100% YoY growth. The company was assigned AA/stable rating by India Ratings and Research in August 2020 which was affirmed in October 2021, re-affirmed in December 2022 and March 2024. NSFL has been able to reach out to more than 3 lakh ultimate beneficiaries in 25 states and 2 Union Territories cumulatively through NBFCs, NBFC-MFIs and other institutional clients. Brand equity and Recognition NSFL has emerged as an Eco-system builder in WASH funding, being the #largest wholesale debt provider for SDG6 among homegrown NBFCs, #largest wholesale debt funder for last mile WASH #pioneer in climate ready WASH funding, and #only homegrown wholesale debt provider covering all sectors (microfinance, MSME, affordable/rural Housing) and entire risk rating spectrum (including unrated NBFCs, Non- profits & trusts) under WASH. In recognition, the Company was awarded the Sa-Dhan Water.org ‘Water and Sanitation (WASH) Financing Award, 2023’ under the capital providers category second time in a row. Way Forward NSFL plans to deepen its support to its focus segments through both organic growth and strategic partnerships. The Company seeks to amplify its outreach effectiveness through collaborative lending efforts such as co-lending, PTCs as well as project financing. 99  For Internal Use only 6. NABSANRAKSHAN 1. Introduction NABARD with the objective of addressing the need of the agriculture and rural sector established a wholly owned subsidiary NABSanrakshan Trustee Private Limited on 13 November 2020. As on 31st March 2024, two Trusts viz. Credit Guarantee Fund Trust for Farmer Producer Organisations and Credit Guarantee Fund Trust for Animal Husbandry and Dairying have been registered under the trusteeship of NABSanrakshan Trustee Private Limited. 2. Credit Guarantee Scheme for Farmer Producer Organisations A dedicated Credit Guarantee Fund Trust for Farmer Producer Organisations (CGFT-FPO) with a corpus of ₹.1000 crore, equally contributed by Department of Agriculture and Farmers Welfare (DA&FW), GoI and NABARD was established on 13 October 2021. A corpus of ₹115 crore has been received in the Trust from Department of Agriculture and Farmers Welfare (DA&FW) for FY 2020-21. Credit Guarantee Scheme for Farmer Producer Organisations Financing has been operational since 28 December 2021. As on 31 March 2024, 94 Eligible Lending Institutions including all Regional Rural Banks, all Public Sector Banks, 08 StCBs and 16 DCCBs have been registered under the Trust. A cumulative of 1876 Credit Guarantees have been issued, providing a coverage of ₹ 336.95 crore for total loan amount of ₹ 401.40 crore availed by 1479 FPOs having 13.67 lakh farme₹ 705 credit guarantees were renewed during the year. Credit Guarantee Scheme has now been extended to NBFC (BBB & above) from NBFCs (AA & above) as eligible lending institutions (ELI). Further, eligibility criteria has been introduced for NBFC (BBB & above), DCCBs and Non-Scheduled StCBs for becoming ELIs under the FPO Scheme. 3. Credit Guarantee Scheme for Animal Husbandry and Dairying As part of Animal Husbandry Infrastructure Development Fund (AHIDF) announced by GoI, a Credit Guarantee Fund Trust for Animal Husbandry and Dairying (CGFT-AHD) of ₹ 750 crore was established on 18 March 2021 under the Trusteeship of NABSanrakshan for providing Credit Guarantees to Scheduled Banks. Corpus of ₹ 216 crore has been received from Department of Animal Husbandry and Dairying (DAHD), GoI. Credit Guarantee Scheme for Animal Husbandry and Dairying has been operational since 27 December 2021. As on 31st March 2024, 55 Eligible Lending Institutions (RRBs-43, PSBs-10, Pvt. SBs-2) have been registered. Under the scheme, cumulative of 5 Credit Guarantees have been issued covering a total loan size of ₹ 88.61 crore and Guarantee Cover of ₹ 22.21 crore. To make the scheme more lucrative, the Ministry of Animal Husbandry and Dairying has taken various initiatives during the year which includes extension of Animal Husbandry Infrastructure Development Fund (AHIDF) till FY 2025-26 by subsuming Dairy Processing Infrastructure Development Fund (DIDF). Under the revised Scheme, Dairy Cooperatives have been included as eligible borrowers and eligible lending institutions have been expanded to include National Cooperative Development Corporation (NCDC), National Bank for Agriculture and Rural Development (NABARD) and National Dairy Development Board (NDDB). Credit guarantee benefits will be extended to Dairy Cooperatives in addition to MSMEs. 100