Tk 126.17b central bank farm credit policy unveiled
Thursday, 22 July 2010
FE Report
The central bank Wednesday announced an agriculture credit policy and programme with a disbursement target of Tk 126.17 billion for this fiscal, projecting 9.6 per cent growth over that of the previous fiscal.
"We've expanded our programme bringing more new areas or sectors under the discipline of disbursement of agriculture loans," Bangladesh Bank (BB) Governor Atiur Rahman told reporters while announcing the new policy at the Bangladesh Bank (BB) in the city.
Of the total target, Tk 89.86 billion will be disbursed by eight state-owned banks and financial institutions during the fiscal year 2010-11(FY11).
Besides, 30 private commercial banks (PCBs) will provide Tk 30.84 billion while nine foreign commercial banks will disburse around Tk 5.83 billion to the farmers, according to the new farm credit policy.
The loans will be given to 21 different agro and rural sectors include crop, fisheries, livestock, agricultural and irrigation equipments, solar irrigation system, high yielding variety of crops, tissue culture, jute cultivation, nursery, marginal and small farmers, sharecroppers, salt and betel leaf cultivation, apiculture, mushroom cultivation, hand looms, silk industry, cotton cultivation, rural finance, credit to women engaged in income generating agriculture and allied agricultural activities.
The banks and financial institutions earlier provided farm loans only to eight different agro-based sub-sectors like crops, irrigation equipment, livestock, marketing of agricultural products, fisheries and poverty alleviation.
The BB chief said emphasis has been, given to simplification of agriculture loans disbursement, rationalisation of the time gap between loan processing and disbursement, application processing without fee in case of crop credit, credit disbursement through farmers' accounts for ensuring transparency and disbursement of agri-credit in a transparent manner.
"We've strengthened our monitoring system to ensure farm credit disbursement across the country properly," Mr. Rahman said while replying to a query, adding that the commercial banks will have to submit their agri-credit disbursement reports to the central bank regularly.
He also said local representatives of private commercial banks have been included in the district agriculture credit committee from this year to strengthen monitoring of the farm credit disbursement.
The central bank earlier introduced a three-tier monitoring system to ensure agriculture loans disbursement across the country.
The banks and financial institutions have achieved 97 per cent of their Tk 115.12 billion annual farm credit disbursement target in the just-concluded fiscal FY10, according to the central bank statistics.
"We've been able to achieve the target through strengthening monitoring and supervision on farm credit disbursement across the country," Deputy Governor of the BB Murshid Kuli Khan said adding that the recovery of agri-credit has been increased during the period under review as a result of strengthening monitoring.
He also said the central bank will promote solar irrigation system particularly in southern Bangladesh this year to facilitate overall agriculture production in the region.
Mr. Khan has been made convener of an 11-member high-powered committee with General Manager of the Agricultural Credit Department of the central bank S.M. Moniruzzaman as its member secretary.
The government earlier formed the committee to supervise and monitor disbursement of agro-credit by the state-owned banks and financial institutions.
Other members of the committee are managing directors (MDs) of eight state-run banks and financial institutions and joint secretaries of the ministries of finance and agriculture.
The eight state-owned 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 Samabaya Bank Limited (BSBL).
The central bank Wednesday announced an agriculture credit policy and programme with a disbursement target of Tk 126.17 billion for this fiscal, projecting 9.6 per cent growth over that of the previous fiscal.
"We've expanded our programme bringing more new areas or sectors under the discipline of disbursement of agriculture loans," Bangladesh Bank (BB) Governor Atiur Rahman told reporters while announcing the new policy at the Bangladesh Bank (BB) in the city.
Of the total target, Tk 89.86 billion will be disbursed by eight state-owned banks and financial institutions during the fiscal year 2010-11(FY11).
Besides, 30 private commercial banks (PCBs) will provide Tk 30.84 billion while nine foreign commercial banks will disburse around Tk 5.83 billion to the farmers, according to the new farm credit policy.
The loans will be given to 21 different agro and rural sectors include crop, fisheries, livestock, agricultural and irrigation equipments, solar irrigation system, high yielding variety of crops, tissue culture, jute cultivation, nursery, marginal and small farmers, sharecroppers, salt and betel leaf cultivation, apiculture, mushroom cultivation, hand looms, silk industry, cotton cultivation, rural finance, credit to women engaged in income generating agriculture and allied agricultural activities.
The banks and financial institutions earlier provided farm loans only to eight different agro-based sub-sectors like crops, irrigation equipment, livestock, marketing of agricultural products, fisheries and poverty alleviation.
The BB chief said emphasis has been, given to simplification of agriculture loans disbursement, rationalisation of the time gap between loan processing and disbursement, application processing without fee in case of crop credit, credit disbursement through farmers' accounts for ensuring transparency and disbursement of agri-credit in a transparent manner.
"We've strengthened our monitoring system to ensure farm credit disbursement across the country properly," Mr. Rahman said while replying to a query, adding that the commercial banks will have to submit their agri-credit disbursement reports to the central bank regularly.
He also said local representatives of private commercial banks have been included in the district agriculture credit committee from this year to strengthen monitoring of the farm credit disbursement.
The central bank earlier introduced a three-tier monitoring system to ensure agriculture loans disbursement across the country.
The banks and financial institutions have achieved 97 per cent of their Tk 115.12 billion annual farm credit disbursement target in the just-concluded fiscal FY10, according to the central bank statistics.
"We've been able to achieve the target through strengthening monitoring and supervision on farm credit disbursement across the country," Deputy Governor of the BB Murshid Kuli Khan said adding that the recovery of agri-credit has been increased during the period under review as a result of strengthening monitoring.
He also said the central bank will promote solar irrigation system particularly in southern Bangladesh this year to facilitate overall agriculture production in the region.
Mr. Khan has been made convener of an 11-member high-powered committee with General Manager of the Agricultural Credit Department of the central bank S.M. Moniruzzaman as its member secretary.
The government earlier formed the committee to supervise and monitor disbursement of agro-credit by the state-owned banks and financial institutions.
Other members of the committee are managing directors (MDs) of eight state-run banks and financial institutions and joint secretaries of the ministries of finance and agriculture.
The eight state-owned 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 Samabaya Bank Limited (BSBL).