annual report 2011-12 annual report 2011-12

174 Pages·2012·3.74 MB·English

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Letter of Transmittal
NATIONAL BANK FOR AGRICULTURE
AND RURAL DEVELOPMENT
Plot: C-24/‘G’, Bandra-Kurla Complex
Post Box: 8121, Bandra (East)
Mumbai - 400 051
CHAIRMAN
Ref.No.NB.Secy./ 748 / AR-1/2012-13
12 July 2012
21 Ashadha 1934 (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 2012 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 2012.
Yours faithfully
Prakash Bakshi

Board of Directors
Dr. Prakash Bakshi
Chairman
Directors appointed
under Section 6(1)(b) of the
NABARD Act, 1981
Shri J. K. Batish Prof. Trilochan Sastry Prof. M. L. Sharma
Directors appointed
under Section 6(1)(c) of the
NABARD Act, 1981
Shri H. R. Khan Prof. Dipankar Gupta
Directors appointed
under Section 6(1)(d) of the
NABARD Act, 1981
Shri P. K. Basu Shri S. Vijay Kumar Shri Umesh Kumar
Directors appointed
under Section 6(1)(e) of the
NABARD Act, 1981
Shri K. Jayakumar Shri D. B. Gupta Shri Shaleen Kabra

Contents
Page No.
NABARD at a Glance
Key Data References
Principal Officers
Highlights ....................................................................................................................................................................................i
I. Rural Economic Environment .........................................................................................................................................1
Economic Scenario .............................................................................................................................................................1
Agriculture & Rural Economy .............................................................................................................................................5
II. Business Operations .......................................................................................................................................................19
(cid:3) (cid:135)(cid:3) (cid:51)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3) .....................................................................................................................................................19
(cid:135)(cid:3) (cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87) .......................................................................................................................................................24

(cid:3) (cid:135)(cid:3) (cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:81)(cid:74)(cid:3)(cid:53)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:44)(cid:81)(cid:73)(cid:85)(cid:68)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:88)(cid:85)(cid:72) .....................................................................................................................................33
(cid:3) (cid:135)(cid:3) (cid:53)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:73)(cid:85)(cid:68)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:39)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71).......................................................................................................................34
(cid:3) (cid:135)(cid:3) (cid:49)(cid:72)(cid:90)(cid:3)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:44)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:86) ..............................................................................................................................................42
III. Development and Promotional Initiatives ..................................................................................................................45
(cid:3) (cid:135)(cid:3) (cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:81)(cid:76)(cid:81)(cid:74) ..........................................................................................................................................................45
(cid:3) (cid:135)(cid:3) (cid:41)(cid:68)(cid:85)(cid:80)(cid:3)(cid:54)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85) ...............................................................................................................................................................45
(cid:3) (cid:135)(cid:3) (cid:53)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:49)(cid:82)(cid:81)(cid:16)(cid:41)(cid:68)(cid:85)(cid:80)(cid:3)(cid:54)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85) ...............................................................................................................................................58
(cid:3) (cid:135)(cid:3) (cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:44)(cid:81)(cid:70)(cid:79)(cid:88)(cid:86)(cid:76)(cid:82)(cid:81) .....................................................................................................................................................59
(cid:3) (cid:135)(cid:3) (cid:48)(cid:76)(cid:70)(cid:85)(cid:82)(cid:16)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:72) ............................................................................................................................................................62
(cid:3) (cid:135)(cid:3) (cid:49)(cid:36)(cid:37)(cid:36)(cid:53)(cid:39)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:88)(cid:79)(cid:87)(cid:68)(cid:81)(cid:70)(cid:92)(cid:3)(cid:54)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86) ..................................................................................................................................67
(cid:3) (cid:135)(cid:3) (cid:53)(cid:72)(cid:86)(cid:72)(cid:68)(cid:85)(cid:70)(cid:75)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:39)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:36)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86) .........................................................................................................................68
IV. Capacity Building of Client Institutions .....................................................................................................................75
(cid:3) (cid:135)(cid:3) (cid:44)(cid:81)(cid:86)(cid:87)(cid:76)(cid:87)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:39)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87) ...........................................................................................................................................75
(cid:3) (cid:135)(cid:3) (cid:54)(cid:88)(cid:83)(cid:72)(cid:85)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:37)(cid:68)(cid:81)(cid:78)(cid:86) .................................................................................................................................................89
V. Organisation, Corporate Governance and Management .......................................................................................93
(cid:3) (cid:135)(cid:3) (cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87) .............................................................................................................................................................93
(cid:3) (cid:135)(cid:3) (cid:43)(cid:88)(cid:80)(cid:68)(cid:81)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87) ................................................................................................................................94
(cid:3) (cid:135)(cid:3) (cid:36)(cid:71)(cid:80)(cid:76)(cid:81)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:50)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:48)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:86) ...............................................................................................................................96
VI. Financial Performance & Management of Resources ..........................................................................................101
(cid:3) (cid:135)(cid:3) (cid:54)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71)(cid:86) ....................................................................................................................................................101
(cid:3) (cid:135)(cid:3) (cid:56)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71)(cid:86) ..........................................................................................................................................................103
(cid:3) (cid:135)(cid:3) (cid:44)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:40)(cid:91)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:87)(cid:88)(cid:85)(cid:72) ..........................................................................................................................................105
Annual Accounts 2011-12 ..................................................................................................................................................107
Auditors’ Report .............................................................................................................................................108
Balance Sheet ................................................................................................................................................109
Profit and Loss Account .................................................................................................................................110
Schedules to Balance Sheet ............................................................................................................................111
Cash Flow Statement ......................................................................................................................................133
Consolidated Financial Statements 2011-12 ...................................................................................................134
E-mail Addresses of NABARD Head Office Departments at Mumbai ..............................................................140
Regional Offices/Cell/Training Establishments .................................................................................................141
Abbreviations ........................................................................................................................................................................143
Boxes
1.1: Measures adopted to Contain Inflation and 3.4: UPNRM Projects – A success story of Kamadhenu
Food Inflation ..................................................................4 project in Chittoor district ..............................................56
1.2: Supply-side Constraints ...................................................8 3.5: Vocational training through micro-loan:
PanIIT-NABARD model .................................................58
2.1: Rural Infrastructure Promotion Fund (RIPF) ..................42
3.6: From “Red Light to a “Ray of light” through
2.2: Application Service Provider (ASP) JLG in Munger, Bihar ....................................................64
Model of CBS ................................................................43 3.7: Salient features of Scheme for Promotion of Women
3.1: Impact Evaluation Findings of Watershed Projects ........46 SHGs in backward districts of India and Left Wing
Extremism Affected districts of India ..............................66
3.2: New model in wadi .......................................................48
4.1: GoI Revival Package for STCCS :
3.3: Pilot Project on Mobile Kisan Credit Card .....................49 Impact Assessment Study ..............................................85

Tables
Table 1.1 : Economic Indicators ............................................1 Table 3.3 : The progress under FIF & FTTF ........................61
Table 1.2 : Sectoral Growth Rates of GDP ............................2 Table 3.4 : Progress of the Micro-Finance Programme ........62
Table 1.3 : Drivers/Causes of Inflation in India ......................3 Table 3.5 : Grant Assistance Extended to
Table 1.4 : Trends in Exports and Imports .............................5 various Partners in SHG-Bank
Linkage Programme ..........................................63
Table 1.5 : Trends in Rainfall and Water Storage ...................6
Table 3.6 : Comparative Position of Income
Table 1.6 : Compound Growth Rates of Area,
earned from Consultancy ..................................68
Production, and Yield of Principal Crops
during 1980-1990, 1990-2000 and Table 3.7 : Training of RFI Personnel ..................................72
2000-2012 .........................................................7 Table 4.1 : Growth of Short-Term Co-operative
Table 1.7 : Requirement & Availability of Seeds in India .......8 Credit Structure ................................................75
Table 1.8 : Production and consumption of fertiliser .............9 Table 4.2 : Growth of Long-Term Co-operative
Credit Structure .................................................76
Table 1.9 : Agency-wise Ground level Credit Flow ..............10
Table 4.3 : Working Results of Co-operative Banks ............76
Table 1.10 : Sub-sector-wise Ground Level Credit
Flow for Agriculture & Allied Activities ...............11 Table 4.4 : Accumulated Losses .........................................76
Table 1.11 : Production of Major Crops ................................11 Table 4.5 : Region-wise Working Results of SCB .................77
Table 1.12 : Production, Consumption and Table 4.6 : Region-wise Working Results of DCCB .............77
Exports of Major Plantation Crops ....................12
Table 4.7 : Region-wise Working Results of SCARDB .........78
Table 1.13 : Area and Production of Major
Table 4.8 : Region-wise Working Results of PCARDB .........78
Horticulture Crops .............................................13
Table 4.9 : Composition of NPA of Co-operative Banks ......79
Table 1.14 : Agency-wise, Year-wise Kisan
Credit Cards Issued ..........................................15 Table 4.10 : Percentage of Recovery of
loans to Demand ..............................................79
Table 2.1 : Short term refinance (production credit)
for the last five years .........................................19 Table 4.11 : Frequency Distribution of Co-operative
Banks According to Range of
Table 2.2 : Sanction of ST(SAO) Credit Limits to
Loan Recovery Percentage ................................80
SCB for the year 2011-12 .................................20
Table 4.12 : Frequency Distribution of States/UTs
Table 2.3 : Sanction of ST(SAO) Credit Limits to
according to Level of Loan Recovery of
RRB for the year 2011-12 .................................22
SCBs and DCCBs .............................................80
Table 2.4 : Rates of Interest on Refinance ...........................24
Table 4.13 : Frequency Distribution of States/UTs
Table 2.5 : Agency wise disbursement of Refinance ..........26 according to Levels of Loan Recovery
Table 2.6 : Region-wise Disbursement of Refinance ............27 of SCARDBs and PCARDBs ..............................81
Table 2.7 : Sector-wise Disbursement of Refinance .............28 Table 4.14 : Elected Boards under Supersession ...................81
Table 2.8 : Sector-wise Projects and Amounts Table 4.15 : Indicators of Performance .................................86
Sanctioned under RIDF XVII .............................35 Table 4.16 : Region-wise Working Results of RRB ................87
Table. 2.9 : Activity-wise Cumulative Sanctions ...................37 Table 4.17 : Frequency Distribution of States
Table 2.10 : Allocations, Sanctions and Disbursements .........38 According to Levels of Recovery of RRB ...........87
Table 2.11 : Utilisation Percentage of RIDF (I TO XVII) ........39 Table 4.18 : Status of Financial Inclusion - RRB ....................88
Table 2.12 : Cumulative Economic and social benefits ..........39 Table 5.1 : Promotions effected during the year ..................95
Table 2.13 : State-wise Expected Benefits under RIDF ..........40 Table 5.2 : Total Staff Strength ............................................95
Table 3.1 : Externally Aided on-going Projects ....................53 Table 6.1 : Sources of Funds .............................................101
Table 3.2 : Progress under UPNRM .....................................55 Table 6.2 : Uses of Funds ..................................................104
Charts
Chart 1.1 : Monthly Inflation Rates for Major Chart 2.2 : Agency-wise Share in
Subgroups of WPI (2011-12) ..............................3 Refinance Disbursement ....................................26
Chart 1.2 : Share of Agriculture & Allied Sector in Chart 2.3 : Region-wise Share in
Total Gross Capital Formation ..........................14 Refinance Disbursement ....................................27
Chart 1.3 : GCF in agriculture as a percentage Chart 2.4 : Tranche-wise Allocations - RIDF I to XVII .........34
of GDP orinating in agriculture .........................15
Chart 2.4 : Sector-wise Cumulative Share in
Chart 2.1 : Financial Support by NABARD ........................19 amount Sanctioned ...........................................36
NABARD AT A GLANCE

(` crore)
Sources of Fund 2012 2011 Net Uses of Funds 2012 2011 Net
Accretion Utilisation
Capital 3,000 2,000 1,000 Cash and Bank Balances 8,313 10538 (-)2,225
Collateralised Borrowing
and Lending Obligation 231 228 3
Reserves & Surplus 13,408 11,863 1,545
Investments in
a) GOI Securities 2,147 2,548 (-)401
NRC(LTO) Fund 14,479 14,468 11
b) ADFC Equity 36 19 17
c) AFC Equity 1 1 0
NRC (Stabilisation) Fund 1,579 1,577 2
d) SIDBI Equity 48 48 0
e) AICI Ltd. 60 60 0
Deposits 291 277 14 f) NCDEX Ltd. & MCX Ltd. 34 18 16
g) Nabcons 5 5 0
Bonds and Debentures 38,584 26,788 11,796 h) Mutual Fund/VCF 0 390 (-)390
i) Biotech Venture Fund 26 10 16
j) Treasury Bills 58 0 58
Borrowings from GoI 85 124 (-)39
k) Commercial Paper 1,037 1,862 (-)825
l) Non Convertible Bonds 375 225 150
Borrowings JNN
m) Equity Shares of Other
Solar Mission 33 0 33
Institution 1 1 0
n) Debentures in Nature of
Foreign Currency Loan 503 503 0 Advance 12,344 13,461 (-)1,117
o) Certificate of Deposits 2,038 680 1,358
Certificate of Deposits 1,281 137 1,144
Loans and Advances
a) Production &
Commercial Paper 2,245 6,448 (-)4,203 Marketing Credit 48,338 33,885 14,453
b) Conversion of Production
Credit into MT Loans 129 193 (-)64
Term Money Borrowings 182 110 72
c) MT & LT Project Loans 30,762 25,432 5,327
d) Interim finance 2 0 2
RIDF Deposits 75,107 67,878 7,229
e) LT Non Project Loans 140 167 (-)27
f) Other Loans 2,323 182 2,141
STCRC Fund 20,000 14,622 5,378
g) RIDF Loans 70,860 66,078 4,782
h) Co-finance 72 88 (-)16
Other Liabilities 6,345 5,546 799
(Net of Provision)
Fixed Assets 225 230 (-)5
Other Funds 4,953 6,171 (-)1218
Others Assets 2,470 2,520 (-)50
Total 1,82,075 1,58,872 23,203 Total 1,82,075 1,58,872 23,203
KEY DATA REFERENCES
Particulars Unit Numerical Value Amount (` crore)
2010-11 2011-12 2010-11 2011-12
Economic Indicators
Overall GDP 1 % Growth 8.4 6.5 – –
Agri GDP 1+ % Growth 7.0 QE 2.8 RE – –
Share of Agri GDP in total GDP % 14.5 QE 13.9 AE – –
South-west Monsoon % deviation from normal 2 1 – –
GLC % increase 21.79 8.70 4,68,291 5,09,040
Foodgrains production million tonnes 244.80 252.60 3rd AE – –
Oilseeds production million tonnes 32.50 31.20 3rd AE – –
Sugarcane production million tonnes 342.40 345.70 3rd AE – –
Cotton production million bales++ 33.00 35.00 3rd AE – –
KCC Issued million 10.16 10.07 43,370 54,269
Development Initiatives
Watersheds No. 66 41 – –
FIPF- projects No. 45 41 – –
Tribal development projects No. 126 98 374 291
FTTF No. of projects 512 395 45 45
Farmers’ Club No. of clubs 21,903 2,5243 – –
NABARD-KfW Projects No. 8 8 41 136
RIF- promotional programmes No. of projects 122 108 11 8
REDP No. 3,327 9,852 12 13
SCC Issued lakh 1.20 0.94 514 496
FITF & FIF No. of projects – - – –
SHG Loan Disbursed* lakh 15.86 11.96 14,453 14,548
Consultancy Assignments - Contracted No. of projects 62 88 24.13 26.87
R&D Fund - Sanction No. of projects – – 1.09 17.67
Business Operations
Financial Support by NABARD – – – 60,483 82,339
Refinance - ST Credit
ST (SAO) - SCB No. 21 23 23,759 33,996
- RRB No. 81 80 9,799.69 13,926
Weavers’ - SCB No. 3 3 216 190
ST (OSAO) - RRB – – – 600 677
Refinance - Investment Credit 13,486 15,422
Farm Sector – – – 5,055 6,525
NFS – – – 3,446 3,574
SHG – – 2,545 3,073
Co-financing projects No. 8 3 12 14
RIDF Loans - Sanction No. of projects 41,779 18,162 18,315 20,701
- Disbursement – – – 12,060 14,927 ^
Performance of RFI
ST Co-operatives
SCB in profit @ No. 29 29 491 521
DCCB in profit @ No. 324 317 1,691 1,457
LT Co-operatives
SCARDB in profit @ No. 10 5 401 367
PCARDB in profit @ No. 295 329 401 367
ST Co-operatives - NPA Position
SCB - NPA @ % to loan O/S 8.84 9.01 4,352 5,719
DCCB - NPA @ % to loan O/S 12.96 11.61 16,396 15,247
LT Co-operatives - NPA Position
SCARDB - NPA@ % to loan O/S 45.06 44.81 5,648 6,116
PCARDB - NPA @ % to loan O/S 5187 51.96 4,889 4,834
RRB
RRB in profit No. 75 79 2,421 2,469
RRB - NPA Position % to loan O/S 3.75 4.14 – –
Inspection of banks@@ No. 302 319 – –
CCB@@ No. 260 240 – –
RRB@@ No. 42 48 – –
Financial Performance &
Management of Resources
Total Working Funds – – – 1,58,872 1,82,075
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 ‘@@ : Statutory Inspections ^ : inclusive of warehousing refinance to Banks
@ : Data pertains to financial years 2009-10 & 2010-11 AE : Advanced Estimate. * : Data pertain to 2009-10 & 2010-11