Sonali Bank starts disbursing agri loans among flood-hit
Tuesday, 21 August 2007
FE Report
State-owned Sonali Bank has started disbursing fresh agricultural loans among the flood-hit farmers across the country on easy terms.
"We have already disbursed Tk 200 million as post-flood agro-credit to rehabilitate the affected farmers," Managing Director of the Sonali Bank SM Aminur Rahman said at a press briefing Monday.
The Bangladesh Bank (BB) earlier asked the state-owned banks to disburse fresh agricultural credit to the flood-affected farmers on relaxed rules and regulations.
Under the move, the flood-hit farmers will be eligible for fresh credit after rescheduling their previous classified loans. The banks, if necessary, may relax the provision relating to down-payment for rescheduling the loan.
The Sonali Bank has set a target of disbursing Tk 6.25 billion in the current fiscal among flood-hit farmers across the country.
"We are ready to increase the target if necessary," the Sonali Bank MD said, adding that the bank disbursed Tk 4.25 billion as agro-credit in the last fiscal.
The country's largest nationalised commercial bank has also planned to waive the interest on agro-credit, particularly for the flood-hit farmers, in accordance with a decision taken by its board of directors.
"We will waive 100 per cent interest on agro-credit in certain cases for the flood-affected farmers," Rahman noted.
The Sonali Bank has already set up a special cell to strictly monitor and supervise its agro-credit disbursement.
"I am working as a chief coordinator of the cell to check any irregularities in disbursement of the post-flood agro-credit," the Sonali Bank MD said.
The central bank has already asked the concerned banks to set up credit monitoring and complaint cells at different levels to ensure their overall agro-credit disbursement process.
Meanwhile, the central bank has set a target of Tk 76.98 billion, which includes an amount of Tk 10.78 billion for private commercial banks -- both local and foreign - for disbursement among flood-affected farmers across the country.
For the first time, 39 private commercial banks, both foreign and local, have already allocated funds for the agricultural credit.
Most of the private commercial banks have already taken steps to disburse the agro-credit to farmers in line with the central bank's instructions, sources in the banking sector said.
According to the BB's statistics, the state-owned eight banks and financial institutions disbursed agricultural credit worth Tk 52.93 billion in fiscal 2006-07, which is over 83 per cent of the target worth Tk 63.51 billion.
In 2005-06, the banks and financial institutions disbursed agricultural credit worth Tk 54.96 billion and in 2004-05, the amount was Tk 49.57 billion.
State-owned Sonali Bank has started disbursing fresh agricultural loans among the flood-hit farmers across the country on easy terms.
"We have already disbursed Tk 200 million as post-flood agro-credit to rehabilitate the affected farmers," Managing Director of the Sonali Bank SM Aminur Rahman said at a press briefing Monday.
The Bangladesh Bank (BB) earlier asked the state-owned banks to disburse fresh agricultural credit to the flood-affected farmers on relaxed rules and regulations.
Under the move, the flood-hit farmers will be eligible for fresh credit after rescheduling their previous classified loans. The banks, if necessary, may relax the provision relating to down-payment for rescheduling the loan.
The Sonali Bank has set a target of disbursing Tk 6.25 billion in the current fiscal among flood-hit farmers across the country.
"We are ready to increase the target if necessary," the Sonali Bank MD said, adding that the bank disbursed Tk 4.25 billion as agro-credit in the last fiscal.
The country's largest nationalised commercial bank has also planned to waive the interest on agro-credit, particularly for the flood-hit farmers, in accordance with a decision taken by its board of directors.
"We will waive 100 per cent interest on agro-credit in certain cases for the flood-affected farmers," Rahman noted.
The Sonali Bank has already set up a special cell to strictly monitor and supervise its agro-credit disbursement.
"I am working as a chief coordinator of the cell to check any irregularities in disbursement of the post-flood agro-credit," the Sonali Bank MD said.
The central bank has already asked the concerned banks to set up credit monitoring and complaint cells at different levels to ensure their overall agro-credit disbursement process.
Meanwhile, the central bank has set a target of Tk 76.98 billion, which includes an amount of Tk 10.78 billion for private commercial banks -- both local and foreign - for disbursement among flood-affected farmers across the country.
For the first time, 39 private commercial banks, both foreign and local, have already allocated funds for the agricultural credit.
Most of the private commercial banks have already taken steps to disburse the agro-credit to farmers in line with the central bank's instructions, sources in the banking sector said.
According to the BB's statistics, the state-owned eight banks and financial institutions disbursed agricultural credit worth Tk 52.93 billion in fiscal 2006-07, which is over 83 per cent of the target worth Tk 63.51 billion.
In 2005-06, the banks and financial institutions disbursed agricultural credit worth Tk 54.96 billion and in 2004-05, the amount was Tk 49.57 billion.