BB raises farm loan disbursement target by 16.24pc

Bangladesh Bank (BB) has raised the agriculture and rural loan disbursement target by 16.24 per cent to Tk 20,400 crore for the current 2017-18 financial year (FY18), reports BSS.

Deputy Governor of the central bank SM Moniruzzaman announced the target yesterday while rolling out the agriculture and rural credit policy for the FY18 at a meeting at the central bank’s headquarters in the capital city.

The disbursement target for the immediate past 2016-17 financial year (FY17) was Tk 17,550 crore.

Ten new banks have to disburse at least 3.5 per cent of their total loans to the farm sector this fiscal year, which is 2 per cent of the amount to be disbursed by private and foreign banks.

According to the new policy, state owned commercial and specialised banks will disburse Tk 9,590 crore while private and foreign commercial banks Tk 10,810 crore.

“The target will not be difficult to achieve for the banks, as they disbursed Tk 20,998.70 crore last fiscal exceeding their annual disbursement target (by 19.65 per cent),” said the deputy governor.

“The undisbursed amounts should be deposited without interest in Bangladesh Bank at the end of the financial year,” he added.

The deputy governor said the policy for the FY18 has been formulated by analysing the last fiscal net loan and advance and considering the capacity of the private and foreign commercial banks and their lack of branches.

As a priority sector, Moniruzzaman said, BB has already asked the banks to bring down interest rate for the agriculture and rural credit to 9 per cent from 10 per cent.

“Without interest, no fees, including processing or monitoring, can be charged for the credit,” he added.

As the high yielding varieties of crops, he said, some new crops, like Kasaba, Broccoli and Squash, have been included in the agriculture product list for providing credit facilities.

He called upon all the bankers to go forward with new spirit and creativity for taking the opportunity and making profit.

BB raises farm loan disbursement target by 16.24pc

Bangladesh Bank (BB) has raised the agriculture and rural loan disbursement target by 16.24 per cent to Tk 20,400 crore for the current 2017-18 financial year (FY18), reports BSS. Deputy Governor of the central bank SM Moniruzzaman announced the target yesterday while rolling out the agriculture and rural credit policy for the FY18 at a meeting at the central banks headquarters in the capital city. The disbursement target for the immediate past 2016-17 financial year (FY17) was Tk 17,550 crore. Ten new banks have to disburse at least 3.5 per cent of their total loans to the farm sector this fiscal year, which is 2 per cent of the amount to be disbursed by private and foreign banks. According to the new policy, state owned commercial and specialised banks will disburse Tk 9,590 crore while private and foreign commercial banks Tk 10,810 crore. The target will not be difficult to achieve for the banks, as they disbursed Tk 20,998.70 crore last fiscal exceeding their annual disbursement target (by 19.65 per cent), said the deputy governor. The undisbursed amounts should be deposited without interest in Bangladesh Bank at the end of the financial year, he added. The deputy governor said the policy for the FY18 has been formulated by analysing the last fiscal net loan and advance and considering the capacity of the private and foreign commercial banks and their lack of branches. As a priority sector, Moniruzzaman said, BB has already asked the banks to bring down interest rate for the agriculture and rural credit to 9 per cent from 10 per cent. Without interest, no fees, including processing or monitoring, can be charged for the credit, he added. As the high yielding varieties of crops, he said, some new crops, like Kasaba, Broccoli and Squash, have been included in the agriculture product list for providing credit facilities. He called upon all the bankers to go forward with new spirit and creativity for taking the opportunity and making profit.