COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

NABARD plans Rs 10-billion issue

National Bank for Agriculture and Rural Development is coming up with an issue of priority sector bonds for Rs 10 billion with a right to retain oversubscription up to Rs 1 billion.

The subscription of these bonds by scheduled banks shall be reckoned as part of their priority sector lendings, as per Reserve Bank of India guidelines, a NABARD release said.

The proceeds of the bonds will be utilised by NABARD to disburse loans and advances to the eligible banks exclusively to finance village, cottage or small-scale industries, non-farming activities and to aid agriculture and allied activities. The bonds carry a coupon of 11.25 per cent payable half-yearly with a seven-year tenure.

The bonds which are being managed in-house by NABARD have been rated 'AAA' by Crisil. The issue will be on tap from March 15 to March 17, 1999, the release said.

Business news