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Nabard is reportedly planning to raise up to Rs 300 billion through bonds in the current financial year (FY25) to support lending operations, as indicated by rating agency CRISIL. CRISIL stated that the money raised through the market, encompassing bonds and money market instruments, accounted for approximately 51.5 per cent of Nabard's total borrowings by the end of March 2024. According to CRISIL's analysis, the total borrowings of the government-owned development finance institution amounted to Rs 7.89 trillion as of March 2024. CRISIL has assigned a ?AAA? rating to the proposed bond offering, taking into account support from the government of India. As per the balance sheet statement for FY24, outstanding bonds and debentures stood at Rs 2.86 trillion in March 2024, marking an increase from Rs 2.46 trillion a year earlier. Consequently, the net borrowings through debentures and bonds escalated by Rs 394.73 billion in FY24. The debt-to-equity ratio was reported to be 10.96 per cent, and the capital adequacy ratio stood at 16.5 per cent by the end of March 2024. CRISIL highlighted that the Union government?s fiscal management policies and financial reforms over the past few years have led to an escalation in the institution?s dependence on market borrowings, resulting in a higher cost of borrowings. Commercial banks' deposits represent another source of funds for the DFI. According to CRISIL, the amount banks are required to deposit with Nabard is linked to the extent of the shortfall in meeting priority sector lending targets. Rural Infrastructure Development Fund deposits accounted for close to 23.7 per cent of total borrowings at the end of March 2024.