Farm credit disbursements record 12.20pc growth in nine months
Tuesday, 3 May 2011
FE Report
Farm credit disbursements recorded a growth of 12.20 per cent in the first nine months of the current fiscal, following strong persuasion of the commercial banks by the central bank and its monitoring of agri-loan operations by banks, officials said Monday. "We're now trying to achieve the overall agriculture credit disbursement target by the end of this fiscal year," a senior official of the Bangladesh Bank (BB) told the FE, adding that the central bank has advised the banks to disburse farm loans, particularly giving a strong focus on productive sectors. All banks and financial institutions disbursed Tk 91.5470 billion during July-March period of the fiscal 2010-11 (FY11) compared to Tk 81.5959 billion of the corresponding period last fiscal, according to the central bank statistics. Of Tk 91.5470 billion, eight state-owned banks and institutions disbursed Tk 70.0988 billion and the remaining amount of Tk 21.4481 billion was disbursed by private commercial banks and foreign commercial banks during the period under review, the BB data showed. 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 disbursed to 21 different agro and rural sectors which include crop, fisheries, livestock, agricultural and irrigation equipments, solar irrigation system, high yielding varieties of crops, tissue culture, jute cultivation, nursery, marginal and small farmers, sharecroppers, salt and betel leaf cultivation, apiculture, mushroom cultivation, handlooms, silk industry, cotton cultivation, rural finance, credit to women engaged in income-generating agricultural and allied activities. "We're monitoring the overall agriculture loan disbursement situation closely to ensure credit facilities on the part of each interested farmer across the country without any harassment," the central bank official said. He also said the central bank is also monitoring the activities of micro-finance institutions (MFIs) for disbursement of farm loans. The banks not having an adequate number of branches in the rural areas, are allowed to use linkage with non-governmental organisations (NGOs) for disbursement of the farm credit, the BB officials added. The banks and financial institutions have achieved 72.56 per cent of their annual target, which has been fixed at Tk 162.1740 billion. The amount is 9.6 per cent higher than that of the last fiscal. The recovery of farm loans, however, rose to Tk 90.2792 billion during the period under review from Tk 74.2381 billion of the corresponding period of the previous fiscal, the central bank officials said.
Farm credit disbursements recorded a growth of 12.20 per cent in the first nine months of the current fiscal, following strong persuasion of the commercial banks by the central bank and its monitoring of agri-loan operations by banks, officials said Monday. "We're now trying to achieve the overall agriculture credit disbursement target by the end of this fiscal year," a senior official of the Bangladesh Bank (BB) told the FE, adding that the central bank has advised the banks to disburse farm loans, particularly giving a strong focus on productive sectors. All banks and financial institutions disbursed Tk 91.5470 billion during July-March period of the fiscal 2010-11 (FY11) compared to Tk 81.5959 billion of the corresponding period last fiscal, according to the central bank statistics. Of Tk 91.5470 billion, eight state-owned banks and institutions disbursed Tk 70.0988 billion and the remaining amount of Tk 21.4481 billion was disbursed by private commercial banks and foreign commercial banks during the period under review, the BB data showed. 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 disbursed to 21 different agro and rural sectors which include crop, fisheries, livestock, agricultural and irrigation equipments, solar irrigation system, high yielding varieties of crops, tissue culture, jute cultivation, nursery, marginal and small farmers, sharecroppers, salt and betel leaf cultivation, apiculture, mushroom cultivation, handlooms, silk industry, cotton cultivation, rural finance, credit to women engaged in income-generating agricultural and allied activities. "We're monitoring the overall agriculture loan disbursement situation closely to ensure credit facilities on the part of each interested farmer across the country without any harassment," the central bank official said. He also said the central bank is also monitoring the activities of micro-finance institutions (MFIs) for disbursement of farm loans. The banks not having an adequate number of branches in the rural areas, are allowed to use linkage with non-governmental organisations (NGOs) for disbursement of the farm credit, the BB officials added. The banks and financial institutions have achieved 72.56 per cent of their annual target, which has been fixed at Tk 162.1740 billion. The amount is 9.6 per cent higher than that of the last fiscal. The recovery of farm loans, however, rose to Tk 90.2792 billion during the period under review from Tk 74.2381 billion of the corresponding period of the previous fiscal, the central bank officials said.