Agri credit disbursement posts 27.22pc growth in Jul-Nov
Monday, 29 December 2008
FE Report
Agricultural credit disbursement recorded a robust growth of 27.22 per cent in the first five months of the current fiscal following some measures including relaxation of its rules and regulations by the central bank.
Eight state-owned banks and financial institutions along with the private commercial banks (PCBs) disbursed Tk 33.77 billion as farm credit during July-November period of the fiscal 2008-09 against Tk 26.55 billion of the corresponding period of the previous fiscal, according to the central bank statistics.
During the period, eight state-owned banks and financial institutions disbursed Tk 26.38 billion compared to Tk 18.69 billion of the same period of the previous fiscal.
While the PCBs lent Tk 7.39 billion to farmers as against Tk 7.86 billion of the previous fiscal.
The state-run banks and financial institutions are: Sonali Bank Limited, Janata Bank Limited, Agrani Bank Limited, Rupali Bank Limited, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samobaya Bank Limited (BSBL).
The loans have been given to agro-based eight sub-sectors like crops, irrigation equipment, livestock, agricultural products marketing, fisheries and poverty alleviation.
The banks and financial institutions have achieved 36.02 per cent of their annual target, which has been fixed at nearly Tk 94 billion. The amount is 13 per cent higher than the last fiscal, the BB's data showed.
"We are hopeful about achieving the agricultural credit disbursement target by the end of this fiscal," a senior official of the Bangladesh Bank (BB) told the FE Sunday.
He also said the central bank wants to ensure credit facilities for each interested farmers across the country without any harassment.
"The district coordination committee on agricultural credit monitoring and supervision has already been strengthened aiming at facilitating the agriculture sector across the country," the BB official added.
The official also said the central bank has made it mandatory for all local and foreign commercial banks to disburse agriculture credit from this fiscal to help ensure food security of Bangladesh.
On October 21 last, the central bank of Bangladesh relaxed its credit policy with a view to facilitating the disbursement of agricultural loans to sharecroppers and landless farmers across the country, officials said.
Under the new policies, sharecroppers, who are directly engaged in farming, will be entitled to receive agriculture loan.
The recovery of farm loan, however, came down to Tk 21.70 billion during the period from Tk 22.53 billion of the same period of the previous fiscal.
The position of overdue agricultural credit as percentage of total outstanding improved, decreasing from 40.64 per cent at the end of November 2007 to 35.63 per cent at the end of November 2008, according to the BB Major Economic Indicators: Monthly Update for December 2008.
Agricultural credit disbursement recorded a robust growth of 27.22 per cent in the first five months of the current fiscal following some measures including relaxation of its rules and regulations by the central bank.
Eight state-owned banks and financial institutions along with the private commercial banks (PCBs) disbursed Tk 33.77 billion as farm credit during July-November period of the fiscal 2008-09 against Tk 26.55 billion of the corresponding period of the previous fiscal, according to the central bank statistics.
During the period, eight state-owned banks and financial institutions disbursed Tk 26.38 billion compared to Tk 18.69 billion of the same period of the previous fiscal.
While the PCBs lent Tk 7.39 billion to farmers as against Tk 7.86 billion of the previous fiscal.
The state-run banks and financial institutions are: Sonali Bank Limited, Janata Bank Limited, Agrani Bank Limited, Rupali Bank Limited, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samobaya Bank Limited (BSBL).
The loans have been given to agro-based eight sub-sectors like crops, irrigation equipment, livestock, agricultural products marketing, fisheries and poverty alleviation.
The banks and financial institutions have achieved 36.02 per cent of their annual target, which has been fixed at nearly Tk 94 billion. The amount is 13 per cent higher than the last fiscal, the BB's data showed.
"We are hopeful about achieving the agricultural credit disbursement target by the end of this fiscal," a senior official of the Bangladesh Bank (BB) told the FE Sunday.
He also said the central bank wants to ensure credit facilities for each interested farmers across the country without any harassment.
"The district coordination committee on agricultural credit monitoring and supervision has already been strengthened aiming at facilitating the agriculture sector across the country," the BB official added.
The official also said the central bank has made it mandatory for all local and foreign commercial banks to disburse agriculture credit from this fiscal to help ensure food security of Bangladesh.
On October 21 last, the central bank of Bangladesh relaxed its credit policy with a view to facilitating the disbursement of agricultural loans to sharecroppers and landless farmers across the country, officials said.
Under the new policies, sharecroppers, who are directly engaged in farming, will be entitled to receive agriculture loan.
The recovery of farm loan, however, came down to Tk 21.70 billion during the period from Tk 22.53 billion of the same period of the previous fiscal.
The position of overdue agricultural credit as percentage of total outstanding improved, decreasing from 40.64 per cent at the end of November 2007 to 35.63 per cent at the end of November 2008, according to the BB Major Economic Indicators: Monthly Update for December 2008.