ICRA

The Department of Subsidiaries and Strategic Investments (DSSI), Head Office, Mumbai organised a Seminar on “Harnessing Opportunities: NABARD Transforming Agri-Landscape” at Sofitel, Mumbai.The Seminar was graced by Shri Shaji K V, Chairman. Shri G.S Rawat, DMD, Dr. Sitikantha Pattanaik, Chief Economist, NABARD. CGMs of DEAR, SPPID, FSDD, DoR, AD & FD and DSSI also participated in the Seminar.

Seminar on “Harnessing Opportunities: NABARD Transforming AgriLandscape

National Bank for Agriculture and Rural Development (Nabard) Chairman Shaji K V on Tuesday said cooperative banks are expected to be digitised by March 2025 with a view to streamline operations and enhance the efficiency of these financial institutions. The Reserve Bank of India (RBI) has mandated all cooperative banks to adopt the Core Banking Solution (CBS) marking a significant step towards modernisation. "We are on behalf of the central government undertaking digitisation of cooperatives. By March 2025 it will happen and by that time we will invite fintechs to work on that. We need a lot of technology solutions to work on these digitised databases that we will have besides looking at transaction trails of digital platforms," he said. Speaking at a CII event here, he said Nabard is proposing to set up a common shared services entity across the country for all rural cooperatives. "Both the government and the RBI have agreed in principle for this entity. We jointly with the central government and cooperative banks will set up a separate company for digital adoption," he said. This entity will also need a lot of fintech collaboration and there are a lot of opportunities for fintechs to partner with both regional rural banks (RRBs) and cooperative banks.

Cooperative banks expected to be digitised by March 2025: Nabard chairman

The National Bank for Agriculture and Rural Development (NABARD) has launched RuralTech CoLab, a unified portal that brings the rural tech start-up ecosystem together. The portal will provide a platform for fintech, agritech and digital capability partners to promote innovation and co-create smart, scalable and inclusive solutions. It will provide access to the bank’s grassroots network, which includes self-help groups, farmer producer organisations, non-governmental organisations, cooperative banks and rural institutions. The portal was part of several other initiatives that the bank launched to mark the bank’s 44th Foundation Day celebrations held in Chennai.

NABARD launches RuralTech CoLab to promote rural tech start-up ecosystem

As of March 2025, 46% of NABARD’s loan book was concentrated among the top 20 borrowers. Key exposures include state governments (29%), co-op banks (22%), SCBs (18%), and RRBs (9%), some with weak credit profiles. Credit risk is partly mitigated by NABARD’s regulatory oversight and early intervention capability.


NABARD’s RoA rose to 0.81% and RoE to 9.48% in FY25, but capped lending margins on key schemes (40–50 bps) limit profitability despite low credit costs, a constraint expected to continue



The issuer has made timely interest payments.

Mr. Shaji K V, Chairman

Fully owned by GoI since 2018, NABARD is the apex body for rural and agri credit. With a low-risk, sovereign-backed portfolio, it reported a strong CRAR of 25.58% and leverage ratio of 7.66% as of March 2025. No capital infusion was planned for FY24–FY25, given robust internal accruals.


NABARD reported low GNPA (0.24%) and nil NNPA as of March 2025, supported by sovereign-backed exposures and regulatory oversight. Credit risk is mitigated through state guarantees, RIDF safeguards, and RBI-registered repayment mechanisms. NBFC slippages were limited and remain manageable.


As of Dec 2024, NABARD’s funding comprised 31% PSL-related deposits, 9% GoIFSBs, 13% bank loans, 9% net worth, and 38% market borrowings. Its quasi-sovereign status allows access to low-cost funds, though EBRs have remained nil and are expected to stay modest.

Rating agency	Rating	Needle position
IND	AAA Stable	near High Safety
ICRA	AAA Stable	near High Safety

Security Name: 6.85% National Bank For Agriculture And Rural Development 21 Mar 2031

ISIN: INE261F08DA8

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