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Nabard to refinance more NBFCs

Nabard has plans to enhance its focus on refinancing non-banking financial companies and microfinance institutions. Stating this, Harsh Kumar Bhanwala, chairman maintained though refinancing NBFCs and MFIs are small part of the overall assistance provided to reach out to small and marginal farmers, it is growing steadily as more companies are now focusing on rural regions. The long-term refinance given by Nabard is about Rs 85,000 crore, of which, NBFCs account for Rs 2,500 crore. This portion of business may be small given the balance sheet size of Rs 3.1 lakh crore, but it is growing fast, he added. Nabard is lending only to AAA and AA rated companies, most of which would turn into small banks. Rural-focused finance companies should use latest technology to speed up the process for extending loan, minimize risk and reach funds to marginal farmers when they need them the most, Bhanwala added.

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