Banks achieve 71pc target in disbursement of farm loan

FT ONLINE

Disbursement of farm loan by the scheduled banks achieved 71.18 per cent of the total target in the eight months to February last as banks strengthened disbursement drives, a central bank official said.

The banks witnessed a high demand for credit from the country's agriculture sector, he added.

The credit disbursement flow was satisfactory during the period, a state-run banker said.

The Bangladesh Bank (BB) is now taking special care of farm loan disbursement to jack the agro-based sector of the country up, an official concerned of the BB said.

Besides, loan disbursement in the sector has increased due to proper monitoring of the central bank, he said adding that the BB has already advised the banks to expedite both recovery and disbursement of farm loans, another BB official said.

The official expressed optimism that loan disbursement target in the sector would be achieved at the end of the fiscal year following various initiatives of the BB and proper disbursement of loan by the banks.

Loans are being disbursed in large scale in the agro sector every fiscal year (FY), he mentioned.

As per the BB statistics as of February 28 last, the banks disbursed farm loans to the tune of Tk 145.20 billion till July-February period. The total target was fixed at Tk 204 billion for the FY 2017-18.

The private commercial banks and foreign commercial banks have disbursed higher amount of loan than the state-run banks.

Of Tk 145.20 billion, eight state-owned banks disbursed Tk 62.19 billion or 64.85 per cent, and the remaining Tk 83.01 billion or 76.79 per cent was disbursed by private commercial banks and foreign commercial banks.