Jumbangla Desk: In the first three months of the current financial year, seven domestic and foreign banks have not started disbursing agricultural loans. Another seven banks have started but the loan disbursement is below 2 percent.
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A review of Bangladesh Bank's quarterly report on agricultural credit found such figures. In the three months of July-September of the current financial year, the state-owned Basic Bank, the domestically owned private Citizen Bank Plc and Padma Bank Plc and the foreign-owned City Bank NA, Commercial Bank of Ceylon, HSBC Bank and Uri Bank have not started disbursing agricultural loans.
Seven banks have disbursed agricultural loans only one to three percent below the target in three months. The private banks disbursing agricultural credit below 3 percent are—Union Bank, Madhumati Bank, Dutch Bangla Bank and Bank Asia. Among the public sector banks, the banks with disbursement below 3 percent are BDB Plc, Janata Bank and Rupali Bank.
Agricultural loans are disbursed for production of food security, purchase of irrigation equipment, purchase of agricultural machinery, agricultural loans for animal husbandry and poultry farms, fisheries, harvesting and marketing and poverty alleviation of people associated with agriculture. Interest rates are also at least 1 percent lower than other loans. These loans increase people's financial connection with agriculture and also help them to do their work on time. In this case, if the money is not received on time, it is of no use to the farmer.
Discussed the situation of agricultural loan distribution with several senior officials of domestic and foreign commercial banks. On the condition of anonymity, they said, because foreign banks do not have enough branches, the NGO disburses agricultural loans using links. Even if the disbursement does not start in the first quarter of the financial year, the entire agricultural loan will be disbursed within any period. Foreign banks follow such a distribution system, the officials said. Other banks that have reduced disbursements will also meet the target within the year.
According to the data, the banking sector has a target of Tk 38 thousand crores for disbursement of agricultural loans for the current financial year. The strategic target level for the three months of July-September is Tk 9,500 crore. At this time, agricultural loans of 6 thousand 458 crore 18 lakh taka have been distributed. Three thousand 41 crores 42 lakhs of loans less than the target have been disbursed in three months.
