Date:02/01/2004 URL: http://www.thehindubusinessline.com/2004/01/02/stories/2004010201661000.htm

Back Nabard sets up consultancy arm

Our Bureau

Mumbai , Jan. 1

THE Nabard has established a fully owned subsidiary for its consultancy services, Nabcons. The new company to be headquartered in Mumbai will have an authorised capital of Rs 25 crore and a paid-up capital of Rs 5 crore.

A formal memorandum of understanding was signed on Thursday between the National Bank of Agriculture and Rural Development (Nabard) and Nabard Consultancy Services Pvt Ltd (Nabcons) with Dr K.G. Karmakar, Executive Director, signing on behalf of Nabard and Mr S.M. Sheokand, CEO, signing on behalf of Nabcons, said a press note from the Nabard.

Hitherto, Nabcons was functioning as an independent wing within Nabard offering consultancy in its area of core competence, agriculture and rural development.

The wing, which was started in June 2002 using internal resources of Nabard, broke even early in the day. It was envisaged that it would be hived off into a separate subsidiary if it maintained its growth.

Nabard officials had earlier stated that while a separate entity will mean brand building, it would provide extra flexibility and benefits of being a lean organisation.

The new entity has set a target to generate annual business of about Rs 15-20 crore from 2005-06.

The consultancy service has contracted/completed more than 60 assignments from across the country, involving consultancy fees of about Rs 241 lakh from commercial banks, corporates, NGOs, Central and the State Government and even individuals.

It has had a client list varying from the Union Government, central banks from Sri Lanka and Uganda, the Government of Yemen, the Planning Commission, Central Bank and Union Bank of India and even the Asia Pacific Rural and Agricultural Credit Association.