Farm loan roll-out goes up 16pc

Farm loan disbursement rose by around 16 percent to Tk 7,723.58 crore in the first seven months of the current fiscal year compared to the same period a year ago.

All commercial banks collectively disbursed 54.66 percent of their annual target of Tk 14,130 crore in agriculture loans during July-January, according to Bangladesh Bank data.

The disbursement was 48.37 percent or Tk 6,675.36 crore during the same period in fiscal 2011-12.

However, 19 banks disbursed below 50 percent of their annual target during the period of the current fiscal year.

“The central bank's move to encourage banks to disburse farm loans has contributed to the current year's growth,” said a BB official.

He said the finance ministry has also recently asked banks to increase farm loans.

Six state-owned banks -- Sonali, Janata, Agrani, Rupali, Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank -- disbursed Tk 4,532.47 crore, or 52.66 percent of their annual target of Tk 8,607 crore.

Private and foreign banks disbursed Tk 3,191.12 crore, which was 57.78 percent of their total annual target of Tk 5,523 crore.

News source:-

The Daily Star Bangladesh

Dated:-17-Feb-2013