Chapter-1 Introduction
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- Profitability of NABARD
Uses of Funds:
Profitability of NABARD:NABARD is a “Development Facilitating and Financing Institution” in rural sector. The national bank was intended to function on business principles and not on commercial principles. Profit maximization is not the goal of NABARD but it has to function on business principles making reasonable profit for making the institution stable and continuing. Being an organization NABARD has its own requirements and needs of profits. Although many institutions are assisting NABARD for nurturing its funds yet many of its funds are managed by NABARD itself. During the last 11 years the income of national bank had shown an increase of three-fold. While the Profits Before Tax (PBT) and Profits After Tax (PAT) had shown an increase of 52% and 47% respectively. Table 3.3: Financial performance of NABARD (2001-02 to 2011-12) (in ` crores)
Source: NABARD Annual Reports Various Issues Table 3.4: Operating Ratios of NABARD (2002-12)
Source: NABARD Annual Reports Various Issues Although NABARD is not commercial in its operations yet it needs to aim for better margins, so that the operating surplus could be ploughed back into its developmental activities which will increase the credit flow to agriculture, allied activities and for rural infrastructural development. NABARD should progressively focus on deploying profits for promoting integrated rural development and securing sustainable rural prosperity through farm and off farm enterprises by providing and regulating credit flow. Being the only institution mobilizing urban surpluses and investing in rural areas, the resource mobilization efforts of NABARD should be supported with fiscal concessions and the bank itself must mobilize innovatively rural deposits and firm up institutional arrangements for its resources. The national bank should be allowed to raise resources from anywhere in the world and such global resources could be deployed in rural credit. Directory: bitstream -> 10603 10603 -> A mathematical theory of communication bitstream -> Methodism and Culture bitstream -> Review of coastal ecosystem management to improve the health and resilience of the Great Barrier Reef World Heritage Area 10603 -> Present state of the area 10603 -> Marine Pollution And Its Effects on Global Environment 10603 -> Introduction chapter I introduction 10603 -> References 10603 -> Bibliography Abd El Halim 10603 -> A thesis submitted to sambalpur university for award of Download 1.67 Mb. Share with your friends:
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