Nabard's refinance for SAO (short-term in nature) is for fertilizers, seeds cultivation activities and are to be repaid within a period of one year. Sources said that the state-wise refinance support for SAO and `other than SAO' (OSAO) for SCBs as well as for regional rural banks will be decided soon. In 1997-98, out of the total OSO refinance support of Rs 5,174 crore to SCBs, effective allocations stood at Rs 4,704 crore with maximum outstandings at Rs 4,016 crore. The utilisational level -- ratio of maximum outstandings to effective allocations -- stood at 85 per cent. The utilisation level in 1996-97 stood at 87 per cent. Andhra Pradesh got the lion's share of Nabard's refinance support for OSOs at Rs 960 crore with a utilisationlevel of 97 per cent, followed by Madhya Pradesh at Rs 744 crore (91 per cent), Haryana at Rs 639 crore (100 per cent) and Uttar Pradesh at Rs 520 crore (69 per cent).

Maharashtra and Kerala had relatively low limits sanctioned in terms of Nabard refinance for OSOs. The utilisations levels in these two states were also low. In the case of Maharashtra, the sanction of refinance limits stood at Rs 117 crore in 1997-98 with the utilisation level at nil while in for Kerala, it was Rs 77 crore and 33 per cent respectively. Nabard sources pointed out that low utilisation levels was a reflection of co-operative entities' health in these states. Under Nabard guidelines, up to 25 per cent of financial support for OSO has to come from a SCB's own resources. This has been pegged at 40 per cent in the case of DCCBs. It is only the remaining amounts that are eligible for Nabard's refinance support for OSO. In Maharashtra and Kerala, the growth in deposits at both the SCB and DCCB level, more than covers for OSO financeneeds, and so, lower Nabard refinance support and even lower utlisational levels.