In a bid to cater to the agriculture sector in a better way, National Bank for Agriculture and Rural Development plans to set up a micro finance institution as a joint venture with banks and other partners.

The plan has received positive feelers from Canara Bank [Get Quote], which, along with others, will together hold 49 per cent. The MFI will be set up with a capital of Rs 100 crore (Rs 1 billion).

The MFI will aim at catering to the poorest, especially those in the agri sector. It will compete with the best-known players in the micro finance domain in terms of providing funds at competitive rates.

Nabard is further setting up an agri-management institute in Kolkata, an outfit that is expected to critically add to the city's academic infrastructure.