Farm credit disbursement records 26pc growth in July-Nov period
Wednesday, 13 January 2010
Nazmul Ahsan
Disbursement of agriculture credit by public and private banks has increased by 26 per cent or Tk 8.72 billion during July-November period of the current fiscal year over that of the same period in the previous fiscal, according to the latest Bangladesh Bank (BB) statistics.
Regular monitoring by the central bank and vigorous efforts on the part of the scheduled banks in disbursing agriculture loans among farmers have helped increase the volume of farm credit during the period, said Bangladesh Bank officials.
The total amount of farm credit disbursed during the period was Tk 42.49 billion, which was Tk 33.78 billion during the corresponding period of the previous fiscal year.
Of the total Tk 42.49 billion, the state-owned commercial and specialized banks along with Bangladesh Rural Development Board disbursed Tk 30.75 billion while private commercial banks disbursed the remaining Tk 11.74 billion as farm credit, according to the BB data.
"The scenario of farm credit disbursement is encouraging thanks to relentless persuasion by the BB," a top central bank official told the FE.
"We are hopeful that the disbursement of low-cost agriculture credit will cross the target at the end of the current fiscal year", he said.
The farm loan disbursement target for the current fiscal is Tk 115.12 billion.
The amount of disbursed agriculture credit in 2008-2009 was Tk 92.84 billion against the target of Tk93.79 billion. Of the total, government-owned banks and institutions disbursed Tk 73.31 billion, while the remaining amount was disbursed by private commercial banks, the BB data elaborated.
The interest rate for such credit is 8.0 per cent and 12 per cent to be applicable for government-owned banks and private commercial banks respectively.
According to the BB data on agriculture loan, Tk 14.52 billion was disbursed as crop loan, Tk 280 million against irrigation equipment, Tk 280.40 million against agriculture equipment, Tk 2.97 billion against livestock, Tk 2.02 billion for fisheries, Tk 430.80 million for grain storage and marketing, Tk 10.08 billion for poverty alleviation and Tk 11.87 billion for other farm-related activities during the first five months of the current fiscal year.
Disbursement of agriculture credit by public and private banks has increased by 26 per cent or Tk 8.72 billion during July-November period of the current fiscal year over that of the same period in the previous fiscal, according to the latest Bangladesh Bank (BB) statistics.
Regular monitoring by the central bank and vigorous efforts on the part of the scheduled banks in disbursing agriculture loans among farmers have helped increase the volume of farm credit during the period, said Bangladesh Bank officials.
The total amount of farm credit disbursed during the period was Tk 42.49 billion, which was Tk 33.78 billion during the corresponding period of the previous fiscal year.
Of the total Tk 42.49 billion, the state-owned commercial and specialized banks along with Bangladesh Rural Development Board disbursed Tk 30.75 billion while private commercial banks disbursed the remaining Tk 11.74 billion as farm credit, according to the BB data.
"The scenario of farm credit disbursement is encouraging thanks to relentless persuasion by the BB," a top central bank official told the FE.
"We are hopeful that the disbursement of low-cost agriculture credit will cross the target at the end of the current fiscal year", he said.
The farm loan disbursement target for the current fiscal is Tk 115.12 billion.
The amount of disbursed agriculture credit in 2008-2009 was Tk 92.84 billion against the target of Tk93.79 billion. Of the total, government-owned banks and institutions disbursed Tk 73.31 billion, while the remaining amount was disbursed by private commercial banks, the BB data elaborated.
The interest rate for such credit is 8.0 per cent and 12 per cent to be applicable for government-owned banks and private commercial banks respectively.
According to the BB data on agriculture loan, Tk 14.52 billion was disbursed as crop loan, Tk 280 million against irrigation equipment, Tk 280.40 million against agriculture equipment, Tk 2.97 billion against livestock, Tk 2.02 billion for fisheries, Tk 430.80 million for grain storage and marketing, Tk 10.08 billion for poverty alleviation and Tk 11.87 billion for other farm-related activities during the first five months of the current fiscal year.