Banks directed to intensify farm credit disbursement
Monday, 10 September 2007
FE Report
The Bangladesh Bank (BB) has asked eight state-owned banks and financial institutions to intensify disbursement of fresh agriculture credit to the flood-affected farmers.
Besides, the central bank directed the banks and financial institutions for taking necessary measures to achieve agro-credit disbursement target by the end of this fiscal.
The BB has set the credit target at Tk 76.98 billion, which includes Tk 10.78 billion from private, local and foreign banks and the rest from state-owned commercial banks for disbursement among flood-affected farmers across the country.
The instructions came at a special review meeting with the officials of the banks and financial institutions, held in the central bank Sunday with General Manager of the Agricultural Credit and Special Programme Department of the BB Dasgupta Asim Kumar in the chair.
The meeting reviewed the overall agro-credit disbursement position and asked the officials to ensure optimum utilisation of farmland after floodwater recedes.
"We have asked the bankers to take initiatives for ensuring the utilisation of farmland through providing credit facilities to the farmers across the country," a BB senior official told the FE Sunday after the meeting.
He also said that the central bank expects to increase the flow of farm credit disbursement in the month of September to meet the demand of the farmers.
A total of Tk 2.65 billion was disbursed during the first month of the current fiscal as against Tk 2.69 billion of the corresponding month of the previous fiscal, the sources added.
The banks and financial institutions are: Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samabaya 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 central bank earlier relaxed the existing rules and regulations to allow flood-hit farmers to take fresh credit through rescheduling their previous classified loans.
The state-owned commercial banks have already issued internal circulars asking their branches to take necessary measures to disburse agro-credit to the flood-hit farmers.
Most of the private commercial banks also took steps to disburse the agro-credit to farmers in line with the central bank's instructions, sources in the banking sector said.
The Bangladesh Bank (BB) has asked eight state-owned banks and financial institutions to intensify disbursement of fresh agriculture credit to the flood-affected farmers.
Besides, the central bank directed the banks and financial institutions for taking necessary measures to achieve agro-credit disbursement target by the end of this fiscal.
The BB has set the credit target at Tk 76.98 billion, which includes Tk 10.78 billion from private, local and foreign banks and the rest from state-owned commercial banks for disbursement among flood-affected farmers across the country.
The instructions came at a special review meeting with the officials of the banks and financial institutions, held in the central bank Sunday with General Manager of the Agricultural Credit and Special Programme Department of the BB Dasgupta Asim Kumar in the chair.
The meeting reviewed the overall agro-credit disbursement position and asked the officials to ensure optimum utilisation of farmland after floodwater recedes.
"We have asked the bankers to take initiatives for ensuring the utilisation of farmland through providing credit facilities to the farmers across the country," a BB senior official told the FE Sunday after the meeting.
He also said that the central bank expects to increase the flow of farm credit disbursement in the month of September to meet the demand of the farmers.
A total of Tk 2.65 billion was disbursed during the first month of the current fiscal as against Tk 2.69 billion of the corresponding month of the previous fiscal, the sources added.
The banks and financial institutions are: Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samabaya 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 central bank earlier relaxed the existing rules and regulations to allow flood-hit farmers to take fresh credit through rescheduling their previous classified loans.
The state-owned commercial banks have already issued internal circulars asking their branches to take necessary measures to disburse agro-credit to the flood-hit farmers.
Most of the private commercial banks also took steps to disburse the agro-credit to farmers in line with the central bank's instructions, sources in the banking sector said.