National Bank for Agriculture and Rural Development (Nabard) is on the path of restructuring its business operations. The bank is not inimical to the idea of entering into the banking industry, the Chairman of Nabard said.
"Without compromising our primary mandate, which is refinancing and supporting the needs of agriculture sector in the country, we will not be averse to any new ideas," Nabard Chairman, U C Sarangi quoted.
In order to prepare a report on its restructure process and on avenues wherein it can diversify its operations, Nabard had recently appointed Boston Consulting Group (BCG), the global management consultancy firm.
BCG started working on the issue last month and its final report is expected to come in November- December. "They will do the study...Let them come back. Then we will see (about the possible options)," Sarangi said.
The organization was founded in 1982 when the functions of the then Agriculture Refinance and Development Corporation and the agriculture credit functions of the Reserve Bank were transferred.
The main objective of Nabard is to grant agricultural credit and supervise co-operative banks and Regional Rural Banks.
RBI currently has the majority stake in Nabard. Out of the total Rs 2,000-crore paid-up capital of Nabard, Rs 1,450-crore is contributed by the apex bank, while Rs 550-crore is from the government.
The Government had initially decided to take off RBI's stake in the firm but its plans to do so have been laid off.
Nabard's plans to enter banking segment come at a time when RBI is planning to issue fresh banking licenses.