Nabard Refinances Rs 2,500 Crore NBFC-MFI Loans In First Year

Nabard Refinances Rs 2,500 Crore NBFC-MFI Loans In First Year
Mumbai: National Bank of Agriculture and Rural Development (Nabard) on Tuesday said it has disbursed Rs 2,500 crore in refinance to non-banking lenders in the first year of starting the facility.

“We started refinance for NBFCs only this year and have disbursed Rs 2,500 crore within one year. Most of the support is to NBFC-MFIs,” Nabard chairman HK Bhanwala told reporters here.

He said the body is “very satisfied” with the book and wishes to grow its exposure to NBFCs in FY17, but declined to give a target.

Many NBFCs supported by Nabard have received in-principle nods from Reserve Bank to work as a small finance bank, he said.

Bhanwala said Nabard will continue supporting such entities and added it has an outstanding of Rs 700 crore from Bandhan Bank, which transformed itself into a universal bank from being a micro-lender last year.

He said Nabard exercises full caution and supports only better rated NBFCs with the refinance facility.

Nabard is slated to close the year with an overall outstanding of over Rs 85,000 crore on long-term refinance, of which Rs 2,000 crore is the one for NBFCs.

He, however, declined to give any additional numbers saying those will be made available only after the end of the fiscal.

[“source-ndtv”]