national bank for agriculture and rural development-10

7/29/2019 National Bank for Agriculture and Rural Development-10

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NATIONAL BANK FOR AGRICULTUREAND 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 31st March 2010 alongwith a copy of the

Auditors Report and

ii. Two copies of the Annual Report of the Board of Directors on the working of National Bank during the

year ended 31st

March 2010.

Yours faithfully

Umesh Chandra Sarangi

Letter of Transmittal

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Board ofDirectors

Directors appointed

under Section 6(1)(c) of the

NABARD Act, 1981

Directors appointed

under Section 6(1)(d) of the

NABARD Act, 1981

Directors appointed

under Section 6(1)(e) of the

NABARD Act, 1981

Umesh Chandra Sarangi

Chairman

Dr. K. C. Chakrabarty Lakshmi Chand Shashi Rekha

Rajagopalan

P. K. Basu B. K. Sinha Alok Nigam

Roshan Lal Letkhogin Haokip L. C. Goyal M. I. Khandey

Dr. K. G. Karmakar

Managing Director



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ContentsPage No.

NABARD at a Glance

Key Data References

Principal Officers

Highlights .................................................................................................................................................................................. 1

I. Rural Economic Environment ...................................................................................................................................... 17 Global Economy ........................................................................................................................................................ 17 Indian Economy ......................................................................................................................................................... 18

II. Development Initiatives ................................................................................................................................................ 32 Farm Sector ................................................................................................................................................................ 32 Rural Non-Farm Sector .............................................................................................................................................. 41 Financial Inclusion ..................................................................................................................................................... 43 Micro-Finance ............................................................................................................................................................ 47 NABARD Consultancy Services ................................................................................................................................. 52 Research and Development Activities ........................................................................................................................ 53 Training Personnel of RFIs ......................................................................................................................................... 54

III. Business Operations ...................................................................................................................................................... 56 Production Credit ....................................................................................................................................................... 56 Investment Credit ....................................................................................................................................................... 60

Rural Infrastructure Development .............................................................................................................................. 66

IV. Capacity Building of Client Institutions .................................................................................................................... 77 Institutional Development .......................................................................................................................................... 77 Supervision over Banks ............................................................................................................................................. 90

V. Organisation and Management ................................................................................................................................... 94 Management .............................................................................................................................................................. 94 Human Resources Management ................................................................................................................................ 95 Administrative and Other Matters ............................................................................................................................... 97

VI. Financial Performance & Management of Resources ........................................................................................... 101 Sources of Funds ..................................................................................................................................................... 101

Uses of Funds .......................................................................................................................................................... 103 Investment of Surplus Funds .................................................................................................................................... 104

Auditors Report .................................................................................................................................................................... 106

Balance Sheet ....................................................................................................................................................................... 107

Profit and Loss Account 2009-10 ...................................................................................................................................... 108

Consolidated Financial Statements 2009-10 .................................................................................................................. 131

Regional Offices/Sub-Office/Training Establishments .................................................................................................... 137

Abbreviations ....................................................................................................................................................................... 139

1.1 Food Inflation ....................................................... 20

1.2 Policy Recommendations on Agriculture &Rural Development ................................................. 23

1.3 Impact of Credit on Crop Yields .............................. 25

1.4 Yield Effect of Kisan Credit Card (KCC) ................... 29

1.5 Task Force to look into Issues of PrivateMoneylenders ........................................................ 31

2.1 Major findings of Mid-Course Evaluation ofWDF Watershed Projects by CRIDA .......................... 32

2.2 Findings of a Quick Study inDistressed Districts ................................................. 33

2.3 Impact Evaluation Study of IGWDP Watershedsin Maharashtra by Action for FoodProduction (AFPRO) : Major Findings ...................... 39

Boxes

2.4 German collaboration inWatershed Programmes ........................................... 39

2.5 UPNRM Projects - Initiatives ................................... 40

2.6 RIF Success Story - Solar Lanternsfor Weavers .................................................................... 41

2.7 Projects Sanctioned under FIFduring 2009 - 2010 ............................................... 45

2.8 Projects Sanctioned Under FITFduring 2009 - 2010 ............................................... 46

2.9 Grant Assistance for MFI Ratings ............................. 49

4.1 Revised Licensing norms forCo-operative Banks ................................................ 91

5.1 Repositioning initiative of NABARD .......................... 95


tj ti t


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NABARD AT A GLANCE

Sources of Fund 2010 2009 Net

Accretion

Capital 2000 2000 0

Reserve & Surplus 10674 9535 1139

NRC(LTO) Fund 14417 14016 401

NRC (Stabilisation) Fund 1566 1555 11

Deposits 505 482 23

Bonds and Debentures 20004 23704 -3700

Borrowings from GoI 147 354 -207

Borrowings from

Commercial Banks 500 500 0

Foreign Currency Loan 494 498 -4

Certificate of Deposits 379 1816 -1437

Commercial Paper 2680 181 2499

Collateralised Borrowing

and Lending Obligation 215 0 215

Term Money Borrowings 762 244 518

RIDF Deposits 59869 47023 12846

STCRC Fund 9622 4622 5000

Other Liabilities 5685 4279 1406

Other Funds 6773 7367 -594

Total 136292 118176 18116

(Rs. crore)

Uses of Funds 2010 2009 Net

Utilisation

Cash and Bank Balances 9628 13975 -4347

Collateralised Borrowing

and Lending Obligation 0 0 0

Investment in

a) GOI Securities 1991 1555 436

b) ADFC Equity 15 15 0

c) AFC Equity 1 1 0

d) SIDBI Equity 48 48 0

e) AICI Ltd. 60 60 0

f) NCDEX Ltd. & MCX Ltd. 15 6 9

g) Nabcons 5 5 0

h) Mutual Fund/VCF 905 1005 -100

i) Treasury Bills 0 157 -157

j) Commercial Paper 744 143 601

Loans and Advances

a) Production &

Marketing Credit 24073 16896 7177

b) Conversion of Production

Credit into MT Loans 0 20 -20

c) Liquidity Support 20 2591 -2571

d) MT & LT Project Loans 35742 33335 2407

e) LT Non Project Loans 199 252 -53

f) Other Loans 131 48 83

g) RIDF Loans 60255 45616 14639

h) Co-finance 84 94 -10

(Net of Provision)

Fixed Assets 235 247 -12

Others Assets 2141 2107 34

Total 136292 118176 18116


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KEY DATA REFERENCES

Page Particulars Unit Numerical Value Amount (Rs. crore)

No. 2008-09 2009-10 2008-09 2009-10

Economic Indicators

18 Overall GDP1 % Growth 6.7 7.4 P

18 Agri GDP1+ % Growth 1.6 0.2 P

19 Share of Agri GDP in total GDP % 15.6 QE 14.6 RE

21 South-west Monsoon % deviation from normal -2 -36

21 North-east Monsoon -31 8

24 GLC % increase 18.6 21.5 P 3,01,908 3,66,919 P

25 Foodgrains production million tonnes 234.46 218.19 3rd AE

25 Oilseeds production million tonnes 27.72 25.41 3rd AE

25 Sugarcane production million tonnes 285.03 274.66 3rd AE

25 Cotton production million bales++

22.28 22.833rd AE

28 KCC Issued million 8.59 5.97 38,245 34,982

Development Initiatives

32 Watersheds No. 38 59 58 196

34 FIPF- projects No. 14 17 2 0.55

34 Tribal development projects No. 74 79 49 236

35 FTTF No. of projects 12 151 2 4.9

35 Farmers Club No. of clubs 9,989 16,590

37 NABARD-KfW Projects No. 8 8 32 41

41 RIF- promotional programmes No. of projects 65 155 12 17.7

42 REDP No. 2,083 2,627 13 10.48

43 SCC Issued lakh 1.5 0.63 628 240

45 & 46 FITF & FIF No. of projects 9 33

47 SHG Credit Linked lakh 10.81 16.09 11,132 12,25352 Consultancy Assignments - Contracted No. of projects 109 83 17 17.11

53 R&D Fund - Sanction No. of projects 12 9 0.87 1.01

Business Operations

57 Financial Support by NABARD 50,577 57,069

Refinance - ST Credit

58 ST (SAO) - SCB No. 20 20 15,448 18,109

59 - RRB No. 76 80 3,547 6,832

59 Weavers - SCB No. 5 5 266 177

60 ST (OSAO) - RRB 191 542

60 Refinance - Investment Credit 10,535 12,009

64 Farm Sector 4,256 4,029

64 NFS 2,707 3,466

64 SHG 2,620 3,17364 Co-financing projects No. 12 8 37 12

69 RIDF Loans - Sanction No. of projects 85,527 39,015 14,719 15,630

69 & 70 - Disbursement 10,459 18,888

72 - Completed 122 62 10 10.9

Performance of RFI

ST Co-operatives

79 SCB in profit @ No. 26 26 286 395

79 DCCB in profit @ No. 261 320 868 1,611

LT Co-operatives

79 SCARDB in profit @ No. 9 11 150 405

79 PCARDB in profit @ No. 283 326 210 206

ST Co-operatives - NPA Position

80 SCB - NPA @ % to loan O/S 12.3 11.9 6,190 5,763

80 DCCB - NPA @ % to loan O/S 18.5 17.9 18,753 17,929

LT Co-operatives - NPA Position

81 SCARDB - NPA @ % to loan O/S 35 30.3 6,435 4,938

81 PCARDB - NPA @ % to loan O/S 43.5 39.1 5,117 4,393

RRB

89 RRB in profit No. 80 78 1,824 2,551

89 RRB - NPA Position % to loan O/S 4.14 3.66

91 Inspection of banks^@@ No. 343 360

91 Co-operative banks@@ No. 292 299

91 RRB@@ No. 51 61

Financial Performance & Management of Resources

101 Market Borrowings 27,779 25,254101 Total Working Funds 1,18,176 1,36,656

QE : Quick Estimate RE : Revised Estimate P : Provisional 1 : At Factor Cost at 2004-2005 prices

+ : Includes agriculture, forestry and fishing ++ : Of 170 kgs each ^ : Voluntary inspections @@ : Statutory Inspections

@ : Data pertains to financial years 2007-08 & 2008-09 AE : Advanced Estimate.


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PRINCIPAL OFFICERS(31 March 2010)

EXECUTIVE DIRECTORS

S. K. Mitra Amaresh Kumar P. L. Behera Dr. Prakash Bakshi

CHIEF GENERAL MANAGERS

(Rural Development Banking Service)

D. B. Gore K. V. Raghavulu V. Ramakrishna Rao B.B.Mohanty A. K. Mathur C. R. Patnaik B. S. Shekhawat

(Andhra Pradesh) (Orissa)

S. G. Rathod R. Narayan A. K. Jain S. Mohapatra C. K. Gopalakrishna P. Satish K. C. Shashidhar

(Tamil Nadu) (Assam) (Madhya Pradesh) (Maharashtra) (Kerala)

Pankaj Pandit Dr. Venkatesh Tagat S. C. Kaushik P. Mohanaiah S. T. Raghuraman P. Das Suraj Bhan

(Karnataka) (Punjab) (West Bengal) (Himachal Pradesh) (Uttaranchal)

J. C. Mishra J. K. Kanoj ia D. P. Mishra M. V. Ashok V. Sreenarayanan G. C. Panigrahi S. G. Siddesh

(Uttar Pradesh) (Jharkhand) (NBSC) (Gujarat)

K. K. Gupta T. Moharana S. Akbar A. K. Srivastava B. B. Nayak S. Balan H. K. Talreja

(Chhattisgarh) (Haryana)




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M. L. Sukhdeve K. Muralidhara Rao M. M. Mishra D. P. Panda

(Jammu & Kashmir) (Rajasthan) (Bihar)

CHIEF GENERAL MANAGERS

(Economic / Legal / Technical Service)

Dr. A. K. Bandyopadhyay U. N. Srivastava Dr. Sandip Ghosh V. Kameswara Rao

(Economic) (Legal) (Technical) (Technical)

GENERAL MANAGERS IN-CHARGE OF REGIONAL OFFICES/

TRAINING INSTITUTIONS

S. Chakrabarty P. C. Sahoo K. Jindal H. R. Dave A. P. Sandilya

(RTC, Bolpur) (Mizoram) (Tripura) (New Delhi) (Goa)

B. G. Mukhopadhyay G. Chintala K. C. Panda B. K. Dey M. M. Baheti

(Arunachal Pradesh) (Andaman & Nicobar) (Nagaland) (Sikkim) (RTC, Mangalore)

DEPUTY GENERAL MANAGERS IN-CHARGE OF

REGIONAL OFFICES/SUB-OFFICE

A. B. Das N. J. Mupid

(Manipur) (Meghalaya)

ASST. GENERAL MANAGER IN-CHARGE OF SRINAGAR CELL

P. L. Negi

p j



9/1481

Highlights

Rural Economic Environment

1. The Indian economy is estimated to have

registered a growth rate of 7.4 per cent in 2009-10 as

against 6.7 per cent witnessed in 2008-09, while the

global economy is expected to dip from 3.0 per cent

in 2008 to (-) 0.6 per cent in 2009. At the sectoral

level, the growth rates during 2009-10 over 2008-09

are expected to be 8.5 per cent (56.9 per cent of

GDP) for services, 9.3 per cent (28.5 per cent of

GDP) for industry and 0.2 per cent (14.6 per cent of

GDP) for agriculture.

2. The Gross Domestic Savings as a proportion to

GDP declined from 36.4 per cent during 2007-08 to

32.5 per cent during 2008-09 and this is estimated to

increase to 34.0 per cent during 2009-10. It is

estimated that the Gross Domestic Investment as a

proportion to GDP marginally decelerated from

35.6 per cent during 2008-09 to 35.0 per cent during

2009-10. The overall share of consumption

expenditure, both private and public, in GDP, is

estimated to decline marginally from 70.9 per cent in

2008-09 to 69.4 per cent in 2009-10.

3. The inflation rate as measured by variations in

the wholesale price index on a monthly basis

remained volatile during 2009-10. The overall

inflation rate decreased from 8.4 per cent during fiscal

2008-09 to 3.8 per cent during fiscal 2009-10, but

during the same period, the food inflation increasedfrom 8.0 per cent to 14.6 per cent.

4. During South-West monsoon (June-September)

2009, the country received 36 per cent less than the

Long Period Average (LPA) rainfall and during

post-monsoon season (October-December), the rainfall

received was 8 per cent above the LPA.

5. The impact of the delayed and sub-normal

monsoon was reflected in reduced area under crop

cultivation during kharif season. Taken together for

kharif and rabi seasons, the crop coverage during

2009-10 at 157.6 million hectares was 3.2 per cent

lower than that during 2008-09. The major changes

in cropping pattern during 2009-10 over 2008-09 were

in rice [(-) 14.3 per cent], cotton (13.4 per cent),

pulses (5.7 per cent) and oilseeds [(-) 4.6 per cent].

6. As against the target of Rs.3,25,000 crore of

credit flow to agriculture for 2009-10, the banking

system disbursed Rs.3,66,919 crore (provisional) as

on 31 March 2010, achieving 12.9 per cent more

than the target. Commercial banks, Co-operative

banks and Regional Rural Banks disbursedRs.2,74,963 crore, Rs.57,500 crore and Rs.34,456 crore,

respectively. Their corresponding shares in credit flow

were 84.6 per cent, 17.7 per cent and 10.6 per cent ,

respectively.

7. The Gross Capital Formation in agriculture and

allied sectors in real terms increased from Rs.78,848 crore

in 2004-05 to Rs.1,38,597 crore in 2008-09 an

increase of 76 per cent in four years. The GCF in

agriculture and allied sectors as a proportion of total

GDP stood at 2.7 per cent in 2004-05 and improved

to 3.3 per cent in 2008-09.

8. During 2009-10, 5.97 million Kisan Credit

Cards were issued by banks with credit limits of

Rs.17,411 crore. Of the total 90.64 million credit

cards issued by February 2010, 39.80 million cards

(43.9 per cent) were issued by commercial banks,

followed by 37.76 million cards (41.7 per cent) by

co-operative banks and 13.08 million cards (14.4 per cent)

by regional rural banks.

9. According to the 3rd

advance estimates, thecountrys foodgrain production during 2009-10 has

been pegged at 218.19 million tonnes as compared to

234.46 million tonnes during 2008-09.



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10. During 2008-09, while the area under various

horticulture crops increased by 2.5 per cent from

20.2 million hectares during 2007-08, production

increased by 3.6 per cent from 212.8 million tonnes

during 2007-08.

11. During 2008-09, the livestock and fisheries

sector contributed over 4.0 per cent of the total GDP

and about 33.34 per cent value of output from

agriculture and allied activities. As a result of the

increase in milk production in the country by 3.5 per

cent during the period between 2007-08 and

2008-09, the per capita availability of milk increased

from 252 grams per day to 258 grams per day.

Similarly, fish production increased by 7.0 per cent

between 2007-08 and 2008-09.12. The rise in the MSP for common paddy,

moong and wheat during 2009-10 over the year

2008-09 were 11.8 per cent, 9.5 per cent and 1.8

per cent, respectively. 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 Government of India has

fixed the Fair & Remunerative Price (FRP) of

sugarcane at Rs.129.84 per quintal during 2009-10,

which was over 51 per cent higher than the

Statutory Minimum Price for the year 2008-09. For

the year 2010-11 seasons, the Government has

hiked the FRP of sugarcane by 7 per cent at

Rs.139.12 per quintal.

13. The stock of foodgrains (rice and wheat) held

by Food Corporation of India as on April 1, 2010 at

42.84 million tonnes was higher by 22.30 per cent over

the level of 35.03 million tonnes as on April 1, 2009.

The off-take of foodgrains (rice and wheat) under

Targeted Public Distribution System (TPDS) and other

Schemes at 48.86 million tonnes during 2009-10 was

23.70 per cent higher than that at 39.50 million tonnes

during 2008-09.

14. NABARD disbursed Rs.25,485 crore against

the claims of Rs.25,858 crore under the Agricultural

Debt Waiver and Debt Relief Scheme, 2008. The

share of SCB, SCARDB and RRB stood at

Rs.15,681 crore, Rs.3,513 crore and Rs.6,291 crore,

respectively.

Development Initiatives

Farm sector

15. During the year, 59 watershed projects were

sanctioned taking the cumulative number to 513,

spread over 94 districts in 14 States. Under the Prime

Ministers Relief Package for 31 districts in four

States, 2.83 lakh ha. was taken up for

implementation during the year, taking the cumulative

area to 8.71 lakh ha. and aggregate financial

commitment to Rs.958 crore. During 2009-10,

Rs.89.41 crore and Rs.14.79 crore were disbursed as

grant and loan, respectively, taking such cumulative

disbursements to Rs.197.77 crore and Rs.30.00 crore,

respectively. Under the Special Plan for Bihar

component of Rashtriya Sam Vikas Yojana, the

number of watershed projects sanctioned rose to 79

by the end of the year, covering an area of 83,593 ha.

in eight districts in South Bihar. The amount

disbursed during the year was Rs.8.37 crore while the

cumulative figure was Rs.13.99 crore.

16. The Village Development Programme had beenimplemented in 953 villages of 437 districts across 25

States, as on 31 March 2010. Under the Tribal

Development Fund, financial assistance of Rs.236.19 crore

was sanctioned during the year for 79 projects,

benefiting 63,113 tribal families. As on 31 March 2010,

Rs.543.62 crore had been sanctioned for 191 projects

benefiting 1,56,330 families.

17. The corpus of the Farm Innovation and

Promotion Fund was enhanced from Rs.5 crore to

Rs.50 crore and 17 proposals in 11 states with



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financial assistance of Rs.155.37 lakh were

sanctioned during the year. Cumulatively, 78 projects

with financial support of Rs.618 lakh have been

sanctioned, of which 25 projects with financial

assistance of Rs.104 lakh have been completed. The

corpus of Farmers Technology Transfer Fund was

also enhanced during the year from Rs.25 crore to

Rs.50 crore and 151 diverse and innovative

proposals for transfer of technologies were

sanctioned a grant assistance of Rs.488 lakh in 22

states. During the year, 16,590 Farmers clubs were

launched taking the total number of clubs to 54,805

covering 1,04,648 villages in 587 districts. Under the

scheme of Capacity Building for Adoption of

Technology, during the year, 6,516 farmers were

taken on 261 exposure visits by NABARD, in

collaboration with select research institutes, KVKs

and SAUs.

18. During the year, a Pilot project for augmenting

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 enhancedproduction and productivity of lead crops/activities.

Rural Non-Farm Sector

19. During 2009-10, 155 innovative projects were

sanctioned under the Rural Innovation Fund, taking

the cumulative number to 252. An amount of

Rs.17.70 crore was sanctioned taking the cumulativecommitment to Rs.38.37 crore, as on 31 March 2010.

An amount of Rs.10.69 crore was disbursed during

the year for 252 projects taking the cumulative

disbursements to Rs.17.99 crore.

20. The District Rural Industries Project was

extended to 106 districts by March 2007 and 43 of

them phased out by 2007-08, on successful

implementation. During 2009-10, GLC flow in 42

districts covered under various phases reached

Rs.675.99 crore and refinance availed of was

Rs.11.11 crore. In all, 45,701 units were set up

generating employment for 1.42 lakh persons. Since

inception, GLC flow aggregated Rs.24,295.11 crore,

facilitating establishment of 19.50 lakh units and

generating employment opportunities for 44.48 lakh

persons. The cumulative refinance availed amounted

to Rs.3,658.46 crore as on 31 March 2010.

21. The Scheme for Strengthening of Rural Haats

introduced in 1999 in DRIP districts was extended to

all districts, village bazaar boards, SHGs, NGOs and

to PRIs/PACS, during the year. The quantum of

assistance was increased to Rs.5 lakh from Rs.3 lakh

and coverage extended to include permanent

structure/s as per local requirements. During 2009-10,

grant support of Rs.298.72 lakh was sanctioned to 87

rural haats.

22. During 2009-10, 15 participatory clusters,

including two rural tourism, were sanctioned with a

total grant support of Rs.225 lakh and five on-location

cluster workshops were conducted, taking the total

number of such programmes to 25.

23. As on 31 March 2010, 116 Women

Development Cells were supported in 58 RRBs, 55

Co-operative banks and three SCARDBs, with

disbursement of Rs.40.39 lakh to address gender

issues in credit and support services. Under

Marketing of Non-Farm Products of Rural Women

and Assistance to Rural Women in Non-Farm

Development schemes, grant support of Rs.6.92lakh and Rs.17.56 lakh, respectively, were released

as on 31 March 2010.

24. During 2009-10, 263 marketing events/

exhibitions, were supported with grant assistance of

Rs.146.13 lakh. To enable rural artisans/craftsmen

realise remunerative prices and to establish marketing

linkages, 119 rural marts in 22 States were sanctioned

grant assistance of Rs.133.91 lakh, during 2009-10.

Cumulative grant support of Rs.332.52 lakh had been

provided to 321 rural marts across 22 States.



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25. During the year, 1.02 lakh Swarojgar Credit

Cards (SCC) with credit limits of Rs.411.05 crore were

issued for facilitating hassle-free availability of credit

for investment and working capital requirements of

small/micro-entrepreneurs. The cumulative number of

SCC was 10.86 lakh involving credit limit of

Rs.4,418.38 crore.

Financial Inclusion

26. The total contribution under Financial Inclusion

Fund (FIF) and Financial Inclusion Technology Fund

(FITF) stood at Rs.50 crore each as on 31 March 2010.

As on 31 March 2010, 50,225 villages have been

covered under Financial Inclusion through FIF & FITF

with a sanction amount of Rs.19.47 and Rs.21.83 crore,

respectively. NABARD and UNDP have entered into

collaboration for financial inclusion in seven states

with focus on SCs/STs/minori ties. NABARD has also

collaborated with Indian Institute of Banking &

Finance (IIBF), Post Offices & Farmers Clubs in

providing financial support for SCs/STs and Women.

Microfinance27. The Microfinance programme in India has

emerged as not only the largest in the world having

covered about 8.6 crore poor households as on

31 March 2009, but also the main contributor

towards financial inclusion in the country. As on

31 March 2009, 61.21 lakh SHGs maintained bank

savings of Rs.5,545.62 crore and 42.24 lakh SHGs

had loan outstanding of Rs.22,679.84 crore. During

the year 2009-10, while 16.09 lakh groups availed of

bank credit of Rs.12,253.51 crore, 581 Micro Finance

Institutions (MFIs) availed of Rs.3,732.33 crore of

bank credit. As on 31 March 2010, 1,915 MFIs had

loan outstanding of Rs.5,009.09 crore. The share of

SHG loan to GLC increased to 4.07 per cent in 2008-09

from 3.8 per cent in 2007-08.

28. During 2009-10, an amount of Rs.20.49 crore

was released as grant support for SHG promotional

activities and Rs.60.42 crore to MFIs for capital

support/Revolving Fund Assistance (RFA) as against

Rs.18.73 crore and Rs.15.93 crore in the previous

year, respectively. During 2009-10, grant assistance of

Rs.28.78 crore was sanctioned to various agencies for

promoting 71,268 SHGs, taking the cumulative

assistance sanctioned to Rs.107.66 crore for 4,92,746

groups as on 31 March 2010. The cumulative

disbursement was Rs.40.38 crore for 2,36,683 SHGs.

An expendi ture of Rs.9.93 crore was incurred for

capacity building initiatives for all stakeholders in the

SHG segment.

29. During the year, grant support of Rs.6.76 lakh

was given for the rating of five MFIs. During the year,

capital support of Rs.6.87 crore was sanctioned to

10 agencies taking the cumulative support to

Rs.27.87 crore for 33 agencies and RFA amounting

to Rs.23 crore was sanctioned to 13 agencies, taking

the cumulative credit sanctioned to Rs.74.02 crore to

42 agencies.

30. Under the Rajiv Gandhi Mahila Vikas

Pariyojana (RGMVP), 21,868 SHGs were promoted in

select districts of Uttar Pradesh, of which 12,749 were

credit linked as on 31 March 2010. In addition, 676

Cluster Level Federations and 15 Block Level

Federations were also formed.

31. During the year, 1530 Micro-Enterprise

Development Programmes (MEDPs) were conducted

for 38,313 SHG members on location-specific farm,

non-farm and service sector activities. Cumulatively,

2,843 MEDPs were conducted for 71,518 participants


32. NABARD continued to extend support for

SHG-Post Office Linkage Programme in Tamil Nadu.

NABARD sanctioned additional Rs.200 lakh RFA toIndia Post for onward lending to SHGs. Cumulatively,

2828 SHGs have opened zero-interest savings

accounts, of which 1,195 SHGs have been credit



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linked by Post Offices, with loans amounting to

Rs.321.25 lakh as on 31 March 2010. RFA of Rs.5 lakh

for on-lending to 50 SHGs in East Khasi Hills in

Meghalaya was also sanctioned to India Post.

33. A survey conducted by NABARD-GTZ Rural

Finance Institutions Programme (RFIP) revealed that

786 MFOs were in existence in 13 priority states, with

a high geographical concentration (75%) in two states

(Andhra Pradesh and Tamil Nadu) and the remaining

scattered over 11 states.

34. Under the NABARD-KfW SEWA Bank project

under implementation in Gujarat, KfW released a

grant assistance of Rs.2.94 crore to SEWA Bank

during 2009-10, taking the cumulative release underthe project to Rs.6.87 crore.

NABARD Consultancy Services

35. During the year, Nabcons opened a liaison

office in Nairobi, Kenya to garner potential rural

development consultancies in the African continent.

Nabcons undertook assignments for APRACA inMongolia and Uzbekistan. Nabcons was approved as

a pass-through agency by Ministry of Rural

Development (MoRD), GoI for assisting skill

development and training programme under SGSY

package. Nabcons contracted 83 assignments with a

fee of Rs.1,711 lakh during the year as against 122

assignments for Rs.1,666 lakh last year. During the

year 2009-10, the company earned an income ofRs.1,278 lakh consisting of Rs.997 lakh from

assignments, Rs.110 lakh from mutual fund

distribution and Rs.171 lakh from income on

investments/other miscellaneous activities.

Research and Development Fund

Activities

36. During the year, Rs.982.98 lakh was utilised

from the R&D Fund for activities like research projects/

studies (Rs.100.03 lakh), seminars (Rs.61.16 lakh),

training/summer placement (Rs.802.84 lakh), and

other activities (18.97 lakh). As on 31 March 2010,

the cumulative disbursement stood at Rs.118.52 crore.

During 2009-10, nine research projects and 112

seminars involving grant assistance of Rs.137.10 lakh

and Rs.88.71 lakh were sanctioned respectively. An

amount of Rs.787.32 lakh was utilised from the R&D

Fund during the year for capacity building of the staff

of Rural Financial Institutes (RFIs). During 2009-10,

under the Summer Placement Scheme, projects on

agriculture and rural development, allied sector,

agri-business and social development were assigned

to 57 students by 21 ROs, TE and HO, entailing an

expenditure of Rs.15.52 lakh.

Other Development Initiatives

37. The Centre for Microfinance Research (CMR)

in BIRD brought out the first issue of its half-yearly

journal, The Microf inance Review. During the year,

grant assistance of Rs.70 lakh was released by

NABARD to CMR taking the cumulative assistance to

Rs.194.18 lakh. An APRACA Centre of Excellence

(ACE) in Linkage Banking was set up in CMR, as a

Leading Centre of Knowledge in Linkage Banking.

38. During the year, NABARD sanctioned grant

assistance of Rs.7.53 lakh to National Institute of

Rural Banking (NIRB), Bangalore for conducting 21

programmes. Further, an amount of Rs.4.24 lakh and

Rs.24.92 lakh were released to NIRB, Bangalore andIndian Institute of Bank Management (IIBM),

Guwahati, respectively.

39. Financial support of Rs.390.20 lakh from the

Co-operative Development Fund (CDF) was disbursed

to the Junior Level Training Centres (JLTCs),

Ag ri cu ltu ra l Co -o pe ra ti ve St af f Tra ini ng In st it ut es

(ACSTIs) and Integrated Training Institutes (ITIs) for

conduct ing 1019 programmes covering 12,088

participants during 2009-10.



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40. The total financial support extended by

NABARD in 2009-10 was Rs.57,069 crore, registering

a growth of 13 per cent over 2008-09.

Production Credit

41. As an incentive to co-operative banks thatcovered the maximum number of new farmers during

2008-09 in the wake of implementation of ADWDR

Scheme, 2008, additional credit limits were provided.

Again, credit limit applications were exempt from

being routed through RCS, in states, which had

executed MoU for implementing the GoI package for

revival of Short Term Co-operative Credit Societies

(STCCS) and amended their Co-operative SocietiesActs. Relaxations were also granted to co-operative

banks not complying with Section 11(1) of Banking

Regulation Act, 1949 (AACS).

42. During 2009-10, ST-SAO limits were sanctioned

to 20 SCBs aggregating Rs.18,109 crore as against

Rs.15,448 crore sanctioned during 2008-09. The credit

limits included Rs.1,809.95 crore for the Oilseeds

Production Programme (OPP), Rs.155.62 crore for

National Pulses Development Programme (NPDP) and

Rs.592.99 crore for credit requirements of tribals under

the Development of Tribal Population (DTP). The SCBs

reached a maximum outstanding credit of Rs.17,436.66

crore during 2009-10, with a utilisation of 96 per cent.

43. During 2009-10, ST (weavers) credit limits

aggregating Rs.177.32 crore were sanctioned to five

State Co-operative Bank (SCBs) (Andhra Pradesh,

Karnataka, Puducherry, Tamil Nadu and West Bengal)

for production/procurement/marketing activities, as

against Rs.265.63 crore during 2008-09. The

maximum outstanding, was Rs.180.78 crore, as

against Rs.166.66 crore last year.

44. During the last three years, 4,172 Handloom

Weavers Groups (HWGs) were formed by banks in 12

States [viz., Orissa (1366), Andhra Pradesh (1220),

Jharkhand (500), Karnataka (498), Assam (272),

Madhya Pradesh (103), West Bengal (88), Bihar (82)

and other States (43)]. Of these, 1,781 Groups have

been credit linked.

45. ST refinance to State Co-operative Agriculture

and Rural Development Bank (SCARDB) for Seasonal

Agricultural Operations (SAO) was continued during

the year, with a refinance of Rs.95.92 crore extended

to Kerala (Rs.74.87 crore) and Rajasthan (Rs.21.05 crore)

SCARDBs at 4.5 per cent, for lending to the ultimate

borrowers at 7 per cent.

46. During 2009-10, limits of Rs.6,832.13 crore

were sanctioned to 80 RRBs under ST-SAO as against

Rs.3,546.81 crore sanctioned to 76 RRBs in 2008-09.

The limits included Rs.577.85 crore for OPP,

Rs.143.86 crore for DTP and Rs.4 crore for NPDP. The

maximum outstanding was Rs.6,779.79 crore, forming

99 per cent of the limit sanctioned during 2009-10.

47. The aggregate limit for ST-OSAO sanctioned

to RRBs during 2009-10 was Rs.542 crore, as against

Rs.190.80 crore last year. The maximum utilisation

was Rs.318.24 crore (59%).

48. Aggregate interest subvention of Rs.1,284.56 crore

was provided by GoI to NABARD, co-operative banks

and RRBs for the year 2007-08. An amount of

Rs.1,205.17 crore has been disbursed for 2008-09.

Interest subvention for 2009-10 was estimated at

Rs.2,600 crore.

49. NABARD continued to act as the nodal agency

for the package announced by GoI for assisting

co-operative sugar mills for loans availed of from

co-operative banks. Out of Rs.138.54 crore received

from GoI as interest subvention, Rs.131.22 crore

Business Operations



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pertaining to 76 co-operative sugar mills, was released

to the co-operative banks. An additional sum of

Rs.113.07 crore was estimated as claims from banks

for 2008-09, 2009-10 and 2010-11. Under the

Scheme for Providing Financial Assistance to Sugar

Undertakings2007 for payment of cane dues for

2006-07 and 2007-08 sugar seasons, GoI placed

Rs.125.71 crore with NABARD, for release against

interest subvention claims. An amount of Rs.60.97

crore was sanctioned to 59 sugar mills operating in

Goa, Gujarat, Karnataka, Maharashtra, Orissa and

Uttar Pradesh.

50. The rates of interest on refinance under

ST(SAO) and ST(Others) to co-operative banks, RRBs

and scheduled commercial banks during 2009-10varied between a minimum of 4 per cent and a

maximum of 8.5 per cent for different purposes.

Investment Credit

51. NABARD continued granting relaxation to

commercial banks, co-operative banks and RRBs in

NER and Sikkim, for enhancing the flow of bankcredit. 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, respectively, (ii) cent per

cent refinance support was extended to all agencies

for all purposes. The rate of interest on refinance to

commercial banks was reduced by 50 basis points.

52. The release of refinance to SCARDBs as also

SCBs/DCCBs for farm and non-farm sector activities

was against Govt. guarantee. However, SCBs that

were in profit during 2007-08 with no accumulated

losses, net NPA less than 5 per cent as on 31 March

2008 and having A Audit classification were

exempted from Govt. guarantee. Refinance to otherSCB, including Section 11(1) of BR Act (AACS), non-

compliant SCBs/DCCBs and to non-scheduled SCBs

was only against Government. guarantee. In the event

of Government guarantee not forthcoming,

alternatives like pledge of government securities or

fixed deposit receipts issued by scheduled banks were

considered.

53. With effect from 01 March 2010, the interest

rates charged were, 8 per cent for commercial banks,

7.5 for RRB/co-operative banks and 6.5 for ADFC/

NEDFi. The rates on interim finance to SCARDBs and

ADFCs were 9.75 and 6.5 per cent respectively. A

special reduction of 50 basis points was provided to

commercial banks in NER, hilly states, Eastern States

and a few other states and Union Territories for all

eligible purposes.

54. The refinance disbursed (including ST-SAO to

SCARDBs) during the year touched Rs.12,009.08 crore

as against Rs.10,535.29 crore last year, recording

an increase of 14 per cent. Commercial banks had

the major share at 50.4 per cent. Across the

regions, refinance disbursement varied widely with

the major share going to the South (50%) followed

by North (20%), Central (12%) and others (18%).

During the year, Non Farm Sector (NFS) (28.86%)

and Self-Help Groups (SHG) (26.42%) were the

major sectors for which banks availed of refinance,

followed by Farm Mechanisation (14.3%) and Dairy

Development (6%).

55. Eight new co-finance projects were sanctioned

during the year with total financial outlay (TFO) of

Rs.62.13 crore taking the cumulative number of

projects sanctioned to 48 with cumulative TFO of

Rs.807.52 crore. An amount of Rs.11.99 crore was

sanctioned during the year. NABARDs cumulative

sanction and disbursement were Rs.229.44 crore and

Rs.136.35 crore, respectively. As on 31 March 2010,

there were 38 on-going cofinance projects.

56. During the year, 60 projects were sanctioned

under cold storages/onion godowns with TFO of



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Rs.129.81 crore, bank loan of Rs.77.77 crore and

subsidy of Rs.30.28 crore. As on 31 March 2010,

1,851 projects had been sanctioned involving TFO of

Rs.2,900.59 crore, bank loan of Rs.1,634.67 crore

and subsidy of Rs.443.58 crore, respectively. The

cumulative capacity created under cold storages and

storage facilities for onion as on 31 March 2010 stood

at 76.74 lakh MT.

57. During the year, 963 rural godown projects

were sanctioned with TFO of Rs.281 .92 crore, bank

loan of Rs.196.82 crore and subsidy of Rs.65.44 crore,

respectively. Cumulatively, as at end March 2010,

17,556 rural godown projects were sanctioned,

involving TFO of Rs.3,798.58 crore, bank loan of

Rs.2,504.08 crore and subsidy of Rs.578.97 crore.The cumulative capacity created under rural

godown scheme as on 31 March 2010 stood at

221.45 lakh MT.

58. The scheme of Agricultural Marketing

Infrastructure, Grading and Standardisation has been

in operation since 2004. During the year, 573 projects

with TFO of Rs.637.90 crore and bank loan of

Rs.419.54 crore were sanctioned and subsidy of

Rs.49.89 crore was released to 21 States and 5 UT.

Cumulatively, 3,838 units with TFO and bank loan

of Rs.1,933.56 crore and Rs.1,283.13 crore,

respectively, were sanctioned and subsidy of

Rs.190.89 crore was released.

59. The scheme of Agri-Clinics and Agri-Business

Centres (ACABC) was started in 2006-07. A subsidy

of Rs.1.61 crore was disbursed for 76 projects

involving TFO of Rs.5.99 crore and bank loan of

Rs.4.66 crore during the year. Till 31 March 2010,

280 projects with TFO of Rs.20.87 crore, bank loan

of Rs.15.98 crore and subsidy of Rs.3.09 crore were

sanctioned.

60. Under the Capital Investment Subsidy Scheme

for Commercial Production of Organic Inputs, net

subsidy of Rs.1,042.33 lakh had been released to 612

units as on 31 March 2010.

61. Potential Linked Plan (PLP) for 623 districts

were prepared during the year, to serve as a guide in

credit planning exercise and infrastructure

development for 2010-11. Three new District

Development Managers offices were opened, taking

the total number of DDM offices to 395. In addition,

100 districts were tagged to specific DDM districts.

Rural Infrastructure Development

62. The RIDF, started in 1995-96, had an

aggregate corpus of Rs.1,00,000 crore till RIDF XV

(2009-10). Additionally, a separate window wasintroduced in 2006-07 for funding rural roads

component of Bharat Nirman Programme, with

allocation of Rs.18,500 crore, till 2009-10. The total

allocation for RIDF, thus, stood at Rs.1,18,500 crore,


63. During the year 2009-10 (RIDF XV), 39,015

projects were sanctioned involving loan amount of

Rs.15,629.82 crore, taking the cumulative number of

projects to 4,02,806 and sanctioned amount to

Rs.1,03,718 crore (RIDF I to XV), of which

Rs.85,597.38 crore had been phased. Of the total

amount sanctioned during the year, rural roads

accounted for 29 per cent, irrigation projects 27 per

cent, social sector projects 16 per cent, bridges 15 per

cent and agri-related 13 per cent.

64. Disbursement during 2009-10, under the

ongoing tranches amounted to Rs.12,387.54 crore

taking the cumulative disbursements to Rs.68,439.74 crore,

forming utilisation of 80 per cent. Additionally, an

amount of Rs.6,500 crore was disbursed to theNational Rural Roads Development Agency (NRRDA)

under Bharat Nirman Programme (BNP), taking the total

disbursements during the year to Rs.18,887.54 crore.



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The cumulative disbursement, as on 31 March 2010,touched Rs.86,939.74 crore, including Rs.18,500 crore

under BNP. Disbursements under RIDF I to IX have

been closed, while disbursements continued under

RIDF X to XV.

65. With the receipt of Rs.16,395.95 crore as

deposits from commercial banks in 2009-10, the

cumulative deposits received under RIDF stood at

Rs.82,725.38 crore. The rate of interest payable by

NABARD on these deposits continued to be at Bank

rate (at present 6%). An amount of Rs.4,248.07 crore

was received from State Governments towards

repayment of RIDF loans during 2009-10. The total

RIDF loan outstanding was Rs.60,255.45 crore as at

end March 2010.

66. During the year, NABARD carried out

monitoring of 6,670 projects through field visits. As on

31 March 2010, the RIDF projects had created additional

irrigation potential of 156.53 lakh ha, 3.04 lakh km

length of rural roads and 5.84 lakh metre length of

rural bridges and generated recurring employment of

81.17 lakh jobs and non-recurring employment of

57,853 lakh person days.

Evaluation and Commodity Specific

Studies

67. 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.

68. Two studies on Cluster Development

Programme (CDP) covering Sisal Fibre and Woodcraft

clusters recommended ensuring fibre availability,

highlighting the environmental benefits of sisal fibre

products compared to cheaper plastic substitutes and

encouraging individual initiatives to establish sisal-based micro-enterprises. The study on woodcraft

cluster revealed that the number of artisans in the

cluster increased about six times after the

intervention. On an average, the sample artisans

produced 192 idols per annum getting an income of

Rs.1,153 per idol, which yielded a return of 44 per cent

of the fixed costs.

69. Seven studies conducted on Rural

Entrepreneurship Development Programme (REDP)

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. The average annual

net gain in income worked out to Rs.18,663 per

trainee. The programme yielded more than 50 per

cent returns to the investment in all the states studied.

Banks and SHGs emerged as the major sources of

credit. The studies suggested enrichment of the course

material with success stories.

70. A study covering 14 states, viz., Andhra

Pradesh, Assam, Gujarat, Haryana, Himachal

Pradesh, Karnataka, Kerala, Maharashtra, Madhya

Pradesh, Orissa, Punjab, Rajasthan, Uttar Padesh &

West Bengal, was conducted covering 1,876 KCCholders from 178 bank branches from Co-operative

banks, RRBs and CBs. The study suggested that KCC

penetration could be further improved in terms of

extending loan such as crop loan, working capital for

allied & NFS activities and consumption loan in the

ratio of 4:2:1. 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.

71. Under the scheme of rural godowns, 20,393

godowns with capacity of 238.37 metric tonnes were

sanctioned all over the country, and for the same, a

subsidy of Rs.543.02 crore was released. An in-housestudy on Rural Godowns in Gujarat: An Evaluation

Study had been conducted during 2009-10. The

study showed that major crops stored in these



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godowns were cotton, castor, mustard, cumin,

tobacco, paddy and bajra. Although the state of

Gujarat tops the list with the maximum number of

rural godowns, the average capacity of godowns in

the state at 217.7 metric tonnes was one of the

lowest in the country. The average bank loan

sanctioned by commercial banks, regional rural

banks and cooperative banks was Rs.6 lakh, Rs.2.89 lakh

and Rs.2.59 lakh, respectively. The utilisation of

capacity created was 67.2 per cent in society-owned

godowns and 68.8 per cent in individual-owned

godowns. While the society-owned godowns attained

break-even level at 25.6 per cent of the available

storage space, the individual-owned godowns

attained it at 53.3 per cent. The repayment

performance of all the godowns selected for thestudy was regular. The scheme of rural godown had

injected Rs.1,270.7 lakh of private investment in the

selected districts viz., Patan and Kheda, which

generated 3.4 lakh non-recurring and 1.5 lakh

recurring employment.

72. Five studies on pulses were conducted in fivestates. The studies revealed low productivity at 622 kg

per hectare. Total processing cost and sales

proceeds for milling one MT of pulses was Rs.24,698

and Rs.26,400, respectively. The net value addition

per one MT of raw pulses was Rs.1,702, at 7 per

cent of the operating cost. The input-output ratio

was 1:1.06.

73. A study on Mentha, an aromatic herb, was

taken up in the state of Uttar Pradesh which

accounts for 80 per cent of the crop area under

mentha. The per acre cost of cultivation of mentha

varied between Rs.14,765 and Rs.18,625. The

average yield of oil per acre varied between 37.6 kg

and 56.50 kg. The net income per acre varied

between Rs.5,099 and Rs.11,207. The gross value of

production from the sale of menthol crystals/flakes

worked out to Rs.25,87,800 and the net income

realised from processing plant per month worked out

to Rs.77,662.

Capacity Building of Client Institutions

Institutional Development

74. While the deposits of SCBs and DCCBs as on

31 March 2009, increased by 24 and 16 per cent,

respectively over the previous year, the borrowings of

SCBs decreased by 7 per cent and that of DCCBs

increased by 6 per cent. Loans issued by SCBs

increased significantly by 58 per cent and that ofDCCBs decreased by 3.4 per cent. Loans

outstanding of SCBs decreased marginally by 3.5 per

cent while that of DCCBs increased marginally by

1.2 per cent.

75. In the Long-Term Co-operative Credit

Structure (LTCCS), borrowings of SCARDBs, as on31 March 2009, decreased marginally by 3.3 per cent

while that of Primary Co-operat ive Agriculture and

Rural Development Banks (PCARDB) increased

marginally by 0.25 per cent, over the previous year.

While loans issued by SCARDBs and PCARDBs

increased by 17 and 16 per cent, respectively, their

loans outstanding decreased by 11 and 5 per cent,

respectively over the previous year.

76. During 2008-09, 26 out of 31 SCBs were in

profit aggregating Rs.395 crore and the remaining 5

were in loss (Rs.71 crore). While 320 out of 370

DCCBs earned overall profit of Rs.1,611 crore, 50

incurred losses to the extent of Rs.337 crore. Eleven

SCARDBs earned an aggregate profit of Rs.405 crore,

while 8 incurred an aggregate loss of Rs.150 crore. Out

of 697 PCARDBs, 326 earned an aggregate profit ofRs.206 crore, while 365 incurred an aggregate loss of

Rs.360 crore. The aggregate accumulated losses of



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DCCBs, SCARDBs and PCARDBs declined in 2008-09with a slight increase for SCBs.

77. During 2008-09, the overall profits of SCBs

increased to 37 per cent over the previous year.

However, profits of SCBs decreased in the Northern

region (9%).

78. In the case of DCCBs, profits during 2008-09

increased across the regions. At the aggregate level,

the number of profit-making DCCBs increased while

the number of loss-making DCCBs reduced.

79. In the LT structure, the number of loss-making

SCARDBs reduced their losess by 65 per cent from

the previous year. During 2008-09, aggregate profit ofSCARDBs was Rs.255 crore. At the aggregate level,

PCARDBs incurred losses of Rs.154 crore during

2008-09.

80. During the year 2008-09, SCARDBs in the

northern region increased their profits, while those in

Central, Eastern and Western regions moved from loss

in 2007-08 to profits in 2008-09. While PCARDB in

Central, Western and Eastern regions increased their

profits, the PCARDB in the Northern region incurred

further losses. At the aggregate level, number of

profit-earning PCARDBs increased profits to

Rs.206.03 crore.

81. At the aggregate level, the percentage of gross

NPA to total loans and advances outstanding in

respect 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.

In absolute terms, NPA was estimated to be

Rs.5,763.50 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. Thepercentage of NPA to total loans and advances

outstanding in the case of SCARDBs and PCARDBs

declined 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 at Rs.4,937.73 crore and

Rs.4,392.95 crore, showing a decline of 23 and 14

per cent, respectively.

82. Regional level NPAs of SCBs vis--vis the all-India average was the lowest in Northern (3.1 %),

and highest in North-eastern (37.4%) regions, as on

31 March 2009. During the same period, NPAs of

DCCBs in Eastern, Western, Central and North-east

regions were higher compared to those in the

previous year.

83. 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, respectively,

over the previous year. In absolute terms, loan

recovery of SCBs improved from Rs.26,433.54 crore

to Rs.33,893.73 crore. At the DCCB level, it increased

from Rs.39,544.40 crore to Rs.57326.77 crore. The

average loan recovery of SCARDBs and PCARDBs, as

on 30 June 2009, declined to 40 and 40.3 per cent

from 50 and 42 per cent, respectively, over the

previous year. In absolute terms, loan recovery of

SCARDB and PCARDB declined to Rs.3,860.44 crore

and Rs.2,842.47 crore, as on 30 June 2009, from

Rs.5,367.81 crore and Rs.3,190.10 crore, respectively,

over the previous year.

84. As on 31 March 2009, 21 SCBs and 9

SCARDBs had executed DAP/MoU (Phase IV) with

State Governments and NABARD.

85. As on 31 March 2009, duly elected Boards

were superseded in 8 SCBs and 91 DCCBs in the STStructure, and in 9 SCARDBs and in 265 PCARDBs

in the LT Structure.



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86. During the year, sanctions and disbursements

were Rs.3.76 crore and Rs.3.78 crore, respectively,

under Co-operative Development Fund (CDF). As on

31 March 2010, cumulative sanctions and

disbursements under CDF were Rs.91.74 crore and

Rs.81.51 crore, respectively. Ten Business

Revitalisation and Managing Human Aspirations

programmes, two ODI and two follow-up visits were

conducted for co-operatives during the year.

87. The special audits of STCCS was completed

in 79,530 PACS out of 95,626 PACS across 25 states.

The special audit of CCBs has been completed in

twelve states and in the remaining States, it is in

progress. An amount of Rs.7,972.22 crore has been

released, till 31 March 2010, by NABARD as GoI

share for recapitalisation of 49,764 PACS in fourteen

states, while the state governments have released

Rs.755.80 crore as their share.

88. So far, 14 States have amended their

Cooperative Societies Acts (CSA). The draft

amendments proposed by the remaining 11 Stateshave been vetted by NABARD, even as previous

amendments in three of these States are awaiting

Presidential assent.

89. Under the GoI package for STCCS, training

has been imparted to 226 master trainers from 16

States, who in turn, trained 1,896 district level

trainers. As on 31 March 2010, training has been

imparted to 72,127 Secretaries of PACS from 14

States, 99,219 elected Board Members of PACS from

11 States, 369 CEO of CCB and 1,671 Directors of

CCB/SCB. In addition, training on CAS/MIS has been

provided to 61,619 PACS functionaries and 3,471

bank supervisors/ departmental auditors.

90. The Task Force, constituted under the

Chairmanship of Shri G. C. Chaturvedi, IAS, Addl.

Secretary (FS), Ministry of Finance, Govt. of India, 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.

91. The total number of RRBs as on 31 March

2010 was 82 (46 amalgamated and 36 stand alone),

with the formation of four new amalgamated RRBsin 2009-10.

92. The entire amount of Rs.1,795.97 crore of

recapitalisation support to 27 RRBs, having

negative net worth as on 31 March 2007, was

received from GoI, the state governments and

sponsor banks concerned, in the ratio of 50:15:35,respectively.

93. In order to free the farmers indebted to money

lenders through debt swap, RRBs, had adopted

24,531 villages, as on 31 December 2009, of which

13,221 had been freed from debt to moneylenders.

94. RRBs had opened 474 branches during 2008-09,

taking the total number of branches of all RRBs to

15,181, as on 31 March 2009. Against the target of

opening 2,000 branches in the next two years,

available information show that RRBs had opened

about 263 branches in 2009-10 taking the total

number of branches to around 15,444.

95. Fifteen RRBs were identified from 14 States for

R & D project on Financial Inclusion with ICT-based

solutions, through use of smart cards, Point of Sale

(PoS) devices and mobile technology, in different

regions and client groups in the country.

96. Under the Financial Inclusion programme,

RRBs had opened 153.81 lakh No Frills Deposit



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Accounts out of a total number of 935.54 lakh

deposit accounts opened as on 31 March 2009. The

number of loan accounts stood at 170.66 lakh during

the corresponding period.

97. Over a period of three years (2008-10),

aggregate reserves of RRBs increased by 38.74 per cent

while deposi ts and investments increased by 44.4 and56.9 per cent, respectively. Borrowings also increased

by 61.4 per cent, while loans and advances

(outstanding) increased by 39.4 per cent in 2009-10.

98. 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-taxprofit to the extent of Rs.2,550.51 crore, as compared

to Rs.1,823.55 crore in 2008-09. The remaining four

RRB incurred losses of Rs.8.4 crore as compared to

Rs.35.91 crore posted by 6 RRB in 2008-09. The

aggregate reserves of RRBs that had wiped off their

accumulated losses in 2008-09 and attained

sustainable viability, increased to Rs.7,912.39 crore

and the net worth increased to Rs.10,256.13 crore.

The accumulated losses of RRBs have decreased by

30.9 per cent over the previous year.

99. The recovery performance of RRBs was

estimated at 79.1 per cent, as on 30 June 2009,

compared to 77.9 per cent as on 30 June 2008.

Al l 15 RRBs in the Nor thern, 3 in West ern and 10

in Southern region had registered a recovery

performance above the national average. Six RRBs

had a recovery percentage of above 90 while five

others had a recovery percentage of less than 60

per cent.

100. The aggregate gross NPAs of all RRBs declined

from 4.1 per cent, as at 31 March 2009, to 3.7 per cent


101. The Committee constituted under theChairmanship of Dr. K.C. Chakrabarty, Deputy

Governor, Reserve Bank of India, 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, submitted its Report to GoI on

30 April 2010.

Supervision of Banks

102. During 2009-10, statutory inspections of 343

banks (30 SCBs, 252 DCCBs and 61 RRBs) and

voluntary inspections of 16 SCARDBs and one apex

society, viz. Gujarat Rajya Handloom, Handicraft and

Audhyogic Sahakari Federation Ltd. (GUISCA), were

conducted. Some of the supervisory concerns that

emerged were non-compliance with statutory

provisions and KYC/AML standards, improper

application of IRAC norms, high NPAs, deficiencies in

sanction, appraisal and post disbursement follow up

of loans, inadequate net margins, ineffective funds

management, inadequate risk management systems,

lack of corporate governance, weak internal checks

and control system, frauds, improper valuation ofsecurities and irregularities in investment portfolio,

violation of Credit Monitoring Arrangement (CMA)/

exposure norms, etc.

103. The Board of Supervision (BoS), constituted by

the Board of Directors of NABARD in 1999, met four

times during the year 2009-10. It reviewed the

functioning of co-operative banks and RRBs including

insolvent/weak banks; frauds; adherence to CMA

norms by co-operative banks; scheduling of

amalgamated RRBs; migratory analysis of supervisory

rating of SCBs, DCCBs and RRBs; compliance of

banks to statutory provisions; disposal of complaints

against supervised banks; etc.

104. As on 31 March 2010, 88 banks (5 SCBs and

83 DCCBs) were not complying with the provisions of



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Section 11(1) of the B.R. Act, 1949 (AACS). The

total erosion in the value of assets of these 88 non-

compliant banks aggregated Rs.12,054.09 crore,

which had affected their deposits to the extent of

Rs.3,780.55 crore (22.60%) in addition to their entire

share capital. Sixty seven DCCBs and three SCBs

were granted exemption from the provisions of

Section 11(1) of the Act, ibid by GoI, up to 31 March2010, while applications for grant of exemption in

respect of 17 banks (1 SCB & 16 DCCBs) were under

the consideration of RBI/GoI.

105. The licensing norms for co-operative banks had

been revised by RBI. Consequent upon the revised

licensing norms, RBI had issued licenses to 8 SCBs and

98 DCCBs during the year, thus increasing the number

of licensed banks to 195 (22 SCBs and 173 DCCBs) as

on 31 March 2010. As a one-time measure, RBI, RPCD

delegated to its Regional units the powers to grant

licenses to cooperative banks. The number of scheduled

SCBs remained unchanged at 16.

106. Thirtynine amalgamated RRBs were included

by the RBI in the Second schedule of the RBI Act,

1934, after they were found complying with Section

42(6)(a)(i) &(ii) of the Act. With this, the number of

scheduled RRBs stood at 75 as on 31 March 2010.

107. As on 31 March 2009, it was found that 39 RRBs

had Provision Coverage Ratio (PCR) below 50 per cent,

29 had between 50 per cent & 70 per cent and 18

RRBs had PCR more than 70 per cent.

108. As on 31 March 2010, 5 SCBs and 83 DCCBs

did not comply with Section 22(3)(a) of BR Act, 1949

(AACS), and 9 SCB and 214 DCCB did not comply

with Section 22(3)(b) of the Act, ibid. Similarly, out

of the 16 scheduled SCB, two were not complying

with Section 42(6)(a)(i) of RBI Act, 1934 in regard to

minimum capital requirements of Rs.5 lakh, and three

were not complying with Section 42(6)(a)(i i) of the

Act. As on 31 March 2010, out of 82 RRBs, 70

complied with Section 42(6)(a)(i) of the RBI Act,

1934 and 49 complied with Section 42(6)(a)(ii) of the

Act. 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.785.38 crore as on 31 March 2010 with

erosion in their deposits to the extent of Rs.111.02 crore

(2.27 per cent).

109. During the year, 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; prudential norms

on asset classification, provisioning & income

recognition in PACS; judicious utilization of funds

post revival package; and ADWDR 2008 scheme

implementation; need for timely completion of audit;

working out CRAR by PACS and disclosing it in their

balance sheets; the role of Chairman/CEO in Fraud

Risk Management System in banks; importance of

Section 19 of the Banking Regulation Act 1949

(AACS) concerning restriction on holding of shares;

expeditious balancing of books and reconciliation of

inter-branch accounts. Master circular on disclosure

norms and revised guidelines on Long Form Audit

Report (LFAR) were issued to the RRBs. Guidance

note on Credit Risk Management (CRM) was issued to

co-operative banks and RRBs. ROs were issued

guidelines in dealing with cases of non-compliance

with the provisions of Section 42(6)(1)(i) of the RBI

Act, 1934 by RRBs; also, clari fications on compliance

to Section 6 of B.R. Act 1949 (AACS) by co-operative

banks and procedure for valuation of unquoted

securities were provided. Operational Manual for

co-operative banks was prepared based on inputs and

feedback obtained from NAFSCOB on many policy

issues.



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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 ofNABARD comprised eight new directors under Section

6 (1) (d) and 6 (1) (e) of NABARD Act, 1981.

111. Board of Directors decided to analytically

examine the present and future role of NABARD and

reposition the institution, to enable it to effectively

address emerging and future challenges. This

initiative, termed Project Reposition, was

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 of India conducted 12th

Financial Inspection of NABARD with reference to

their financial position as on 31 March 2009 between27 January to 26 February 2010.

Overseas visits by top management

113. The Chairman attended the 57th EXCOM of

APRACA he ld in Chiang Mai, Thai land in March

2010. The Managing Director attended the

Regional workshop of FAO in Manila, Philippines inOctober, 2009.

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. Fifty four officers were deputed for tailor-madeprogrammes delivered on post-harvest management,

disaster management, etc., designed to meet

specialised training needs, while 424 officers were

Organisation and Management

deputed for 153 off the shelf programmes, workshops,

seminars and conferences organised by various

institutes of repute. Further, 120 officers were

deputed abroad for various overseas training

programmes, exposure visits, seminars, etc. In

addition, 45 training programmes covering 663

employees were conducted at NBTC, Lucknow andZTC, Hyderabad. Pre-promotional training programmes

were also conducted for 47 Group B staff for

promotion to Grade A and one pre-retirement

programme was conducted for 5 Group B and

Group C staff.

115. During the year, 51 employees availed of

facilities under the incentive scheme for professionalstudies 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.

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,

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

Assoc iation.

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

was under taken during the year. The bank observed



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Vigilance Awareness Week from 2 November to6 November 2009.

120. During the year, the banks intranet was

expanded to collect data/returns from RO/TEs by

means of 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.

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, Co-financing Cell of ICD, Treasury

Operations, Information System Audit, etc.,

continued to be outsourced to external auditors.

122. The Bank continued to promote the use ofHindi 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.

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. During the year,

ROs brought out 102 PLPs and 54 inspection reports

in Hindi.

Financial Performance & Managementof 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.

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)

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.

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

previous year). After meeting the expenditure ofRs.5,692.34 crore as against Rs.5,063.15 crore in the

previous year towards interest/financial charges,

establishment/other expenses, provisions and

depreciation, the profit before tax for the year

amounted to Rs.2,272.45 crore as against

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 croreas against Rs.1,390.13 crore for the previous year.

Amounts of Rs.350 crore, Rs.400 crore, Rs.10 crore

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.



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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 years estimate of 5.0 per cent.

Global Economy

1.2 The growth in the global output witnessed

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 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

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

36.5 per cent of the global output of cereals, oil crops

and milk and milk products, whereas, Indias 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).

Table 1.1: Overview of Global Economy

(Annual per cent change)

Growth 2008 2009 2010*

A. GDP (Real)

a. World 3.0 (-)0.6 4.2

b. Advanced Economies 0.5 (-)3.2 2.3

i. United States 0.4 (-)2.4 3.1

ii. Euro Area 0.6 (-)4.1 1.0

iii. Japan (-)1.2 (-)5.2 1.9

iv. Newly Industrialised

Asian Economies 1.8 (-)0.9 5.2c. Emerging and Developing

Economies 6.1 2.4 6.3

i. Developing Asia 7.9 6.6 8.7

ii. China 9.6 8.7 10.0

iii. India 7.3 5.7 8.8

iv. ASEAN - 5** 4.7 1.7 5.4

B. Consumer Prices

a. Advanced Economies 3.4 0.1 1.5

b. Emerging and Developing

Economies 9.2 5.2 6.2

C. Trade Volume

(goods & services)

a. Imports by Emerging and

Developing Economies 8.5 (-)8.4 9.7

b. Exports by Emerging and

Developing Economies 4.0 (-)8.2 8.3

D. Commodity Prices

a. Oil Prices 36.4 (-)36.3 29.5

b. Non-Fuel Prices 7.5 (-)18.7 13.9

* Projections;

** Includes Indonesia, Malaysia, Philippines, Thailand and Vietnam

Source: World Economic Outlook, IMF, April 2010.



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Table 1.2: Production of Cereals, Oilseeds & Milk products in the World, 2008 and 2009

(Million Tonnes)

Country/Group Cereals Production@ Oil crops Production Milk and Milk Products

% share in % share in % share in

2008* 2009** World 2008-09* 2009-10** World 2008 2009* World

India*** 216.9 200.3 9.2 34.7 36.4 8.4 109.1 112.3 15.9

Asia 973.7 973.6 43.1 125.5 126.1 29.7 248 254.8 36.1

Africa 147.9 155.8 6.7 16.8 16.2 3.9 36.1 36.6 5.2

Central America 41.7 40.4 1.8 1.2 1.2 0.3 15.8 16.1 2.3

South America 134.7 116.6 5.6 104.7 131.2 27.8 57.4 57.7 8.3

North America 457.0 461.1 20.3 107.0 113.8 26.0 94.5 93.7 13.5

Europe 493.9 454.5 21.0 49.0 49.0 11.6 215.4 216.1 31.0

Ocenia 35.1 36.2 1.6 3.0 3.0 0.7 24.6 26.0 3.6

World 2284.0 2238.2 100.0 407.2 440.5 100.0 691.8 701.0 100.0

Developed Countries 1042.9 1009.7 45.4 164.4 170.4 39.5 363.2 365.2 52.3

Developing Countries 1241.2 1228.4 54.6 242.7 270 60.5 328.5 335.7 47.7

Low Income Food

Deficit Countries 948.2 943.3 41.8 129.4 129.9 30.6 250.3 257.6 36.5

Least Developed Countries 137.9 139.3 6.1 10.1 10 2.4 25.7 26.2 3.7

@Rice is measured in terms of paddy (unhusked); *: Estimated; **: Forecast; ***: Dairy year commences from April

Source:FAOSTAT @FAO Statistics Division 2009; December 2009.

Indian Economy

A. Economic Scenario

a. Gross Domestic Product

1.5 After a phase of deceleration in growth from

9.2 per cent during 2007-08 to 6.7 per cent during

2008-09, there has been a recovery during 2009-10,

with an estimated growth rate of 7.4 per cent (Table 1.3).

The increase in the growth rate could be attributed

partly to the growth rates of over 8 per cent in

industry and services sectors. However, the

contribution of agriculture, forestry and fishing sector

is likely to register a growth of 0.2 per cent in its GDP

during 2009-10 due to delayed monsoon and the

consequent declines estimated in the production offoodgrains and oilseeds.

1.6 Sectoral analysis of growth rates between 2005-06

and 2008-09 revealed a mixed trend. At disaggregatedlevel, the overall growth rate during 2009-10 comprised

of growth rates of 0.2 per cent in agriculture and allied

activities, 9.3 per cent in industry and 8.5 per cent in

Table 1.3: Economic Indicators

Annual percent change

Particulars 2007-08 2008-09 2009-10^

a. Overall GDP 9.2 6.7 7.4

b. GDP from Agriculture &

Allied Activities 4.7 1.6 0.2

c. Foodgrains Production 6.2 1.6 (-)6.9

d. Industrial Production 8.5 2.8 10.4

e. Inflation as measured by WPI 4.7 8.4 3.8

f. Imports 35.0 19.8 (-)8.2

g. Exports 29.1 12.3 (-) 4.7

Trade Balance* (as % of GDP) (- )0.2 (-)0.2 (-)0.2

Gross Domestic Savings

(as % of GDP) 36.4 32.5 34.0

Gross Domestic Investment

(as % of GDP) 37.6 35.6 37.2

Fiscal Deficit** (as % of GDP) 2.6 6.0 6.6

External Debt (as % of GDP) 18.1 20.5 --

^ : Provisional.

* : based on the balance as per DGCI & S (CMIE, June 2010) and GDP

at current prices.** : GDP at current

national bank for agriculture and rural development-10

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