BB asks eight state-owned banks, financial instts to speed up agri credit disbursement
Sunday, 3 June 2007
FE Report
The Bangladesh Bank (BB) has asked eight state-owned banks and financial institutions to speed up disbursement of agricultural credit aiming to reach the target set for fiscal 2006-07 ending on June 30 next.
The BB's instruction came against the backdrop of decline in farm credit disbursement by 4.77 per cent in the first nine months of the current fiscal over that of the corresponding period of the previous fiscal.
The directive was made at a regular review meeting with the senior officials of the eight banks and financial institutions held at the central bank Wednesday last, the sources added.
Eight nationalised commercial and specialised banks disbursed Tk 38.19 billion during the July-March period of fiscal 2006-07 against Tk 40.10 in the same period of the previous fiscal, sources in the central bank said.
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 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.
"We have asked the banks and financial institutions to raise the arte of disbursement of the agricultural credit for achieving its target by the end of the fiscal," a BB senior official told the FE Saturday.
He also said the central bank is now monitoring sector-wise disbursement of the credit across the country.
Besides, at least three private commercial banks (PCBs) -- National Bank Limited, National Credit and Commerce (NCC) Bank Limited and Islami Bank Bangladesh Limited -- are also disbursing farm credit.
The central bank has asked the PCBs to submit reports relating to use of farm credit to the department concerned to get a real picture of disbursement, the sources said.
Sources, however, said most of the banks and financial institutions have already sent their special teams to different zones in the country to monitor the disbursement of the farm credit.
Agricultural credit recovery, however, reached Tk 32.85 billion, registering a 14.26 per cent growth during the nine-month period over the same period of the previous fiscal. A total of Tk 28.75 billion was recovered in the last fiscal.
A total of Tk 63.16 billion has been fixed as target of farm credit disbursement by the eight banks and financial institutions for fiscal 2006-07. The amount is around 13.95 per cent higher than that of the last fiscal's target of Tk 55.42 billion, the sources noted.
The position of overdue agricultural credit as percentage of total outstanding deteriorated, showing a 42.73 per cent at the end of March last against 40.45 per cent at the end of March 2006. Currently, an 11-member high-powered committee, headed by the BB Deputy Governor Nazrul Huda, on 'agro-credit supervising and monitoring' is working to supervise, monitor and disbursement of the agro-credit of the state-owned banks and financial institutions.
The Bangladesh Bank (BB) has asked eight state-owned banks and financial institutions to speed up disbursement of agricultural credit aiming to reach the target set for fiscal 2006-07 ending on June 30 next.
The BB's instruction came against the backdrop of decline in farm credit disbursement by 4.77 per cent in the first nine months of the current fiscal over that of the corresponding period of the previous fiscal.
The directive was made at a regular review meeting with the senior officials of the eight banks and financial institutions held at the central bank Wednesday last, the sources added.
Eight nationalised commercial and specialised banks disbursed Tk 38.19 billion during the July-March period of fiscal 2006-07 against Tk 40.10 in the same period of the previous fiscal, sources in the central bank said.
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 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.
"We have asked the banks and financial institutions to raise the arte of disbursement of the agricultural credit for achieving its target by the end of the fiscal," a BB senior official told the FE Saturday.
He also said the central bank is now monitoring sector-wise disbursement of the credit across the country.
Besides, at least three private commercial banks (PCBs) -- National Bank Limited, National Credit and Commerce (NCC) Bank Limited and Islami Bank Bangladesh Limited -- are also disbursing farm credit.
The central bank has asked the PCBs to submit reports relating to use of farm credit to the department concerned to get a real picture of disbursement, the sources said.
Sources, however, said most of the banks and financial institutions have already sent their special teams to different zones in the country to monitor the disbursement of the farm credit.
Agricultural credit recovery, however, reached Tk 32.85 billion, registering a 14.26 per cent growth during the nine-month period over the same period of the previous fiscal. A total of Tk 28.75 billion was recovered in the last fiscal.
A total of Tk 63.16 billion has been fixed as target of farm credit disbursement by the eight banks and financial institutions for fiscal 2006-07. The amount is around 13.95 per cent higher than that of the last fiscal's target of Tk 55.42 billion, the sources noted.
The position of overdue agricultural credit as percentage of total outstanding deteriorated, showing a 42.73 per cent at the end of March last against 40.45 per cent at the end of March 2006. Currently, an 11-member high-powered committee, headed by the BB Deputy Governor Nazrul Huda, on 'agro-credit supervising and monitoring' is working to supervise, monitor and disbursement of the agro-credit of the state-owned banks and financial institutions.