Agri credit disbursements record 12.28pc growth in seven months
FE Report | Monday, 2 March 2009
Agricultural credit disbursements recorded a growth of 12.28 per cent in the first seven 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 51.10 billion as farm credit during July-January period of the fiscal 2008-09 against Tk 45.51 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 38.39 billion compared to Tk 30.63 billion of the same period of the previous fiscal while the PCBs lent Tk 12.70 billion to farmers as against Tk 14.87 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 54.48 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've asked the commercial banks to achieve the agriculture credit disbursement target on an average monthly basis that would help attain the annual target smoothly," a senior BB official 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 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, the BB official added.
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.
Under the new policies, sharecroppers, who are directly engaged in farming, will be entitled to receive agriculture loan.
The recovery of farm loans, however, rose to Tk 49.50 billion during the period under review from Tk 36.75 billion of the same period of the previous fiscal.
The position of overdue agricultural credit as percentage of total outstanding improved, decreasing from 37.64 at the end of January, 2008 to 34.39 at the end of January, 2009, according to the BB Major Economic Indicators: Monthly Update for February 2009.
Eight state-owned banks and financial institutions along with the private commercial banks (PCBs) disbursed Tk 51.10 billion as farm credit during July-January period of the fiscal 2008-09 against Tk 45.51 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 38.39 billion compared to Tk 30.63 billion of the same period of the previous fiscal while the PCBs lent Tk 12.70 billion to farmers as against Tk 14.87 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 54.48 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've asked the commercial banks to achieve the agriculture credit disbursement target on an average monthly basis that would help attain the annual target smoothly," a senior BB official 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 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, the BB official added.
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.
Under the new policies, sharecroppers, who are directly engaged in farming, will be entitled to receive agriculture loan.
The recovery of farm loans, however, rose to Tk 49.50 billion during the period under review from Tk 36.75 billion of the same period of the previous fiscal.
The position of overdue agricultural credit as percentage of total outstanding improved, decreasing from 37.64 at the end of January, 2008 to 34.39 at the end of January, 2009, according to the BB Major Economic Indicators: Monthly Update for February 2009.