Nabard to review interest rates of its two bonds

Kolkata, Jul 22 (UNI) The National Bank for Agriculture and Rural Development (Nabard) today said it would review the interest rates of its two bonds because of the situation in the present market.

" We will review the rates on the bonds and approach the Government to allow revision of rates because we think the response to our bonds will be poor in the present market," Nabard Chairman U C Sarangi said on the sidelines of banking conclave organised by Ficci.

Nabard has the Bhagya Nirman Bond with a 10-year maturity period and rural bonds offering 8.25 per cent per annum to general investors and 8.75 per cent to senior citizen.

Nabard said it was targeting to disburse Rs 31,000 crore to 32,000 crore during the current fiscal as refinance loan, against Rs 24,000 crore in the previous year.

" We also have a fund of Rs 7,000 crore for liquidity finance to cooperative banks arising out of losses from bad loans," Mr Sarangi said.

He said Nabard would collect data and review the impact of the loan waiver scheme on the balance sheets of cooperative banks and take appropriate action in offering liquidity finance.

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