NABARD sanctions assistance to rural banks in Kerala

Thiruvananthapuram, June 28 (UNI) The National Bank for Agriculture and Rural Development (NABARD) has sanctioned a short term refinance assistance of Rs 244.75 crore to the two Regional Rural Banks (RRBs) in Kerala for the year 2007-08.

NABARD in a release here said the South Malabar Gramin Bank would get Rs 166.75 crore, while the assistance to the North Malabar Gramin Bank would be Rs 78 crore.

The assistance was meant for supporting the RRBs' lending for crop loans (short term seasonal agricultural operations loans) to farmers to the extent of Rs 198.15 crore at an interest rate of 4.5 per cent per annum.

Further, an amount of Rs 46.60 crore was sanctioned towards working capital requirements for production and marketing activities of rural artisans, village and cottage industries in tiny sector and financing of weaker sections engaged in trade, business and services, the release added.

UNI