New Delhi: The National Bank for Agriculture and Rural Development (NABARD) is preparing to raise its maiden external commercial borrowing (ECB) in FY26, Chairman Shaji KV announced. The move marks a strategic step to diversify funding sources and strengthen climate-focused financing.
RBI Approval Secured
NABARD has already received approval from the Reserve Bank of India to undertake the issuance. Work on the process has commenced, with the bank aiming to launch the borrowing within FY26. However, the timeline and the quantum of funds are yet to be finalised.
Focus on Climate Finance
The proceeds will be directed towards climate change-related financing activities, for which concessional funds are available. Chairman Shaji highlighted that nearly the entire rural portfolio of NABARD qualifies under this category, ensuring strong alignment with sustainability goals.
Strengthening Global Presence
To facilitate the ECB, NABARD will first establish a representative office in GIFT City. Depending on future activity, the bank may expand with a full-fledged branch in the international financial services hub.
NABARD has not raised funds from the domestic market recently due to hardening yields, which have increased borrowing costs. The upcoming ECB will provide an alternate avenue to meet financing needs efficiently.
About NABARD
The National Bank for Agriculture and Rural Development (NABARD), established in 1982, is India’s premier development financial institution focusing on agriculture and rural development. Headquartered in Mumbai, NABARD provides credit support, policy guidance, and innovative financing solutions to enhance rural infrastructure, promote sustainable livelihoods, and strengthen India’s agrarian economy.
Also Read: NABARD Supports Jharkhand with Rs 5,830 Crore to Boost Rural Infrastructure and Livelihoods
