Bangladesh Bank on Monday set the farm loan disbursement target for local and foreign banks at Tk 16,400 crore for the financial year 2015-16, which is 5.46 per cent higher than that of the FY15.
The central bank set the target in its agriculture and rural credit policy and programmes in which the central bank asked the banks to achieve their annual farm loan targets, otherwise they (banks) would have to deposit the undisbursed agriculture loans in a blocked account with the BB.
BB governor Atiur Rahman unveiled the policy at the central bank headquarters in the capital in presence of managing directors and chief executive officers of all scheduled banks.
According to the BB data, all banks collectively disbursed Tk 15,978.46 crore, or 103 per cent of the target amounting to Tk 15,550 crore, in farm loans in the FY15.
In the farm loan policy for the FY16, the central bank set a loan disbursement target of Tk 9,290 crore for the seven state-owned commercial and specialised banks — Sonali, Agrani, Janata, Rupali, BASIC, Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank .
The target for the banks was Tk 9,240 crore in the FY15.
For the local private and foreign commercial banks, the target of farm loan disbursement for the FY16 was set at Tk 7,110 crore.
According to the BB policy, each bank has to disburse to the agricultural sector 2.50 per cent of its total lending while the new banks will have to disburse 5 per cent each.
The central bank will consider the banks’ performances in the farm loan disbursement to calculate their (banks) CAMELS rating from this financial year.
At the farm loan policy unveiling session, Atiur said the BB would keep the undisbursed farm loans in the blocked account without paying any interest as punishment for their failure in meeting the annual targets.
The central bank will not show any relaxation in imposing the penalty, he said.
Atiur said the banks would have to upload the farm loan application form on their respective web sites and publish media advertisements in this regard to encourage the farmers in getting loans.
Some banks earlier showed reluctance in providing the farm loan application form to discourage the farmers in receiving loans.
He asked the banks to appoint adequate manpower at the monitoring cells of the farm loan at their branches to expedite the credit disbursement.
The BB report, however, showed that the banks failed to achieve the loan disbursement targets to the farmers involved in cultivating four types of import-replacing crops — pulses, oil seeds, spices and maize — in the FY15.
The BB had set a loan disbursement target of Tk 95.21 crore to the growers of the crops for the FY15 for the scheduled banks, but the banks disbursed 82 per cent of the target.
BB general manager Provash Chandra Mallick said the political unrest had put an adverse impact on the loan disbursement to the farmers involved in cultivating the import-replacing crops.
The central bank would take initiative this financial year to achieve the target in the area, he said.
BB deputy governor SK Sur Chowdhury said the central bank was now thinking to introduce crop insurance to save farmers from any type of natural calamity.
The banks should consider disbursing loans to promote crop marketing, he said.
He requested the banks to avoid farm loan disbursement through non-government organisations as such type of activities affected the rate of interest and interest rate spread.
The central bank set the target in its agriculture and rural credit policy and programmes in which the central bank asked the banks to achieve their annual farm loan targets, otherwise they (banks) would have to deposit the undisbursed agriculture loans in a blocked account with the BB.
BB governor Atiur Rahman unveiled the policy at the central bank headquarters in the capital in presence of managing directors and chief executive officers of all scheduled banks.
According to the BB data, all banks collectively disbursed Tk 15,978.46 crore, or 103 per cent of the target amounting to Tk 15,550 crore, in farm loans in the FY15.
In the farm loan policy for the FY16, the central bank set a loan disbursement target of Tk 9,290 crore for the seven state-owned commercial and specialised banks — Sonali, Agrani, Janata, Rupali, BASIC, Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank .
The target for the banks was Tk 9,240 crore in the FY15.
For the local private and foreign commercial banks, the target of farm loan disbursement for the FY16 was set at Tk 7,110 crore.
According to the BB policy, each bank has to disburse to the agricultural sector 2.50 per cent of its total lending while the new banks will have to disburse 5 per cent each.
The central bank will consider the banks’ performances in the farm loan disbursement to calculate their (banks) CAMELS rating from this financial year.
At the farm loan policy unveiling session, Atiur said the BB would keep the undisbursed farm loans in the blocked account without paying any interest as punishment for their failure in meeting the annual targets.
The central bank will not show any relaxation in imposing the penalty, he said.
Atiur said the banks would have to upload the farm loan application form on their respective web sites and publish media advertisements in this regard to encourage the farmers in getting loans.
Some banks earlier showed reluctance in providing the farm loan application form to discourage the farmers in receiving loans.
He asked the banks to appoint adequate manpower at the monitoring cells of the farm loan at their branches to expedite the credit disbursement.
The BB report, however, showed that the banks failed to achieve the loan disbursement targets to the farmers involved in cultivating four types of import-replacing crops — pulses, oil seeds, spices and maize — in the FY15.
The BB had set a loan disbursement target of Tk 95.21 crore to the growers of the crops for the FY15 for the scheduled banks, but the banks disbursed 82 per cent of the target.
BB general manager Provash Chandra Mallick said the political unrest had put an adverse impact on the loan disbursement to the farmers involved in cultivating the import-replacing crops.
The central bank would take initiative this financial year to achieve the target in the area, he said.
BB deputy governor SK Sur Chowdhury said the central bank was now thinking to introduce crop insurance to save farmers from any type of natural calamity.
The banks should consider disbursing loans to promote crop marketing, he said.
He requested the banks to avoid farm loan disbursement through non-government organisations as such type of activities affected the rate of interest and interest rate spread.
Source: bdnews24
