News Details

Banks achieve 105pc of special agri loan disbursement target


---



Rezaul Karim
State-owned commercial banks (SCBs), private commercial banks (PCBs) and foreign commercial banks (FCBs) have cumulatively achieved 105 per cent of their special agricultural loan disbursement target in the last fiscal year (FY 2011-12).

According to the Bangladesh Bank (BB) statistics, in FY 2011-12 (July-June) the banks disbursed a total of Tk 816.30 million as special agricultural credit at 4.0 per cent interest, which is 105.15 per cent of their yearly target of Tk 776.30 million.

Of the total amount, Tk 12.13 million was disbursed for cultivation of pulses, Tk 56.14 million for oil seeds, Tk 657.93 million for spices and Tk 90.16 million for maize cultivation.

The SCBs include Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB).

According to the BB statistics, Sonali Bank disbursed 127.51 per cent, Janata Bank 121.02 per cent, Agrani Bank 126.40 per cent and RAKUB 126.04 per cent of their respective targets of Tk 153 million, Tk 157.32 million, Tk 156.48 million and Tk 50.41 million.

Besides, BKB disbursed 89.06 per cent, Rupali Bank 29.66 per cent, PCBs 81.42 per cent and FCBs 71.90 per cent of their respective targets of Tk 178.11 million, Tk 59.32 million, Tk 107.47 million and Tk 7.54 million.

The government had earlier re-fixed the interest rate at 4.0 per cent from the previous rate of 2.0 per cent on special agricultural credit to be disbursed for cultivation of pulses, oil seeds, spices and maize.

The government gives subsidy to the banks at a 6.0 per cent interest rate, so that they can get 10 per cent interest in total when they disburse loan to the farmers at a 4.0 per cent rate.

According to the Department of Agriculture Extension (DAE), Bangladesh imports about 50 per cent of its total consumption of spices. The loan is being given to discourage import of the items and reduce annual import payment of nearly Tk 25 billion.

The farmers are gradually becoming more and more interested in cultivating spicy crops, availing the easy-term credit facility. The BB officials expressed optimism that spice production in the country would increase further thanks to various initiatives taken by the government.

Earlier, a substantial amount of money, allocated to be disbursed as special agri-loan, remained idle with the banks, though these special loan programmes were launched about one decade ago.

Presently, due to various steps taken by the BB, loan is being disbursed at a large scale among the farmers every fiscal, the BB officials added.


[ Stock & Corporate ] 2012-08-17