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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
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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
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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
as on 31 March 2010.
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,
as on 31 March 2010.
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
as on 31 March 2010.
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