By IANS,
Kolkat : Agricultural credit lender National Bank for Agriculture and Rural Development (Nabard) cut refinance rates Tuesday with effect from Wednesday, a top official said here.
“We are cutting the rates for both commercial banks and co-operative and regional rural banks by 50 basis points,” said Nabard chairman Umesh Chandra Sarangi.
Refinance rate for investment credit for co-operative banks have been brought down to 8 percent while that given to the commercial banks have been cut to 8.5 percent, Sarangi told reporters on the sidelines of the ongoing Banking Conclave.
Refinance rates for crop loans have been kept unchanged.
Sarangi said he expected Nabard’s short-term crop loans disbursement to grow 30 percent to Rs.21,000 crore and investment credit by 12.5 percent to Rs.12,500 crore in 2009-10.
Investment credit is given for development of agri-related infrastructure.
“We don’t see any dip in agri-loans in the country as we believe farmers are ready with alternative crops in places where there has been inadequate rain till now,” Sarangi said.