Nabard raised Rs 750 crore in form of commercial paper for 11 days at 9.82%.

MUMBAI: Government owned Nabard raised Rs 750 crore in form of commercial paper for 11 days at 9.82%. Money market dealers said that Nabard raised money on Wednesday and placed the CP with a select banks and mutual fund. This is one of rare short term issuance from a highly rated company. CP is an unsecured money market instrument.

Nabard is mandate to provide credit for the promotion of agriculture & related activities, It also plays a regulatory, supervisory and developmental role, for the growth of agriculture and rural sector. The Reserve Bank of India's ( RBI) rule allow issuance of CP for a minimum of 7 days and a maximum of one year.

During half of fiscal year 2010-11, Nabard reported profit after tax of Rs.765 crore on total income of Rs.4,482 crore as compared to profit of Rs.709 crore on total income of Rs.3,953 crore in comparable period a year ago. The short term fund raising by Nabard has surprised many bankers since Nabard does not run a very active loan book.