BB raises agri loan target by Tk10 bn

The Bangladesh Bank aims to distribute Tk 138-billion farm loans in the current fiscal, nearly Tk 10 billion more than the last year. FULL STORY
Published : 28 July 2011, 10:19 AM
Updated : 28 July 2011, 10:19 AM
Dhaka, July 28 ( — The Bangladesh Bank aims to distribute farm loans worth Tk 138 billion in the current fiscal year, up Tk 10 billion or 9.4 percent than that of the last year.
Governor Atiur Rahman announced the target after a meeting with the chief executive officers of the country's all banks on Thursday.
He thanked them for their efforts for achieving about '97 percent success' in distributing farm loans in the last fiscal year.
"The target to distribute agriculture loans in the last fiscal year was Tk 126.17 billion. Around 97 percent of the target could be achieved for your (bankers') continuous efforts," Atiur said.
He noted that the recovery of agriculture loans was 67 percent in the last fiscal year against 61 percent in the previous year.
The governor said the central bank aims to build a sustainable agro-loan system and urged banks to increase manpower in branches to screen the loan-seekers, ensure the optimum use of loans and supervise the repayment process.
"You could adopt a 'no work, no pay' policy if you find regular appointments difficult," he suggested.
Atiur also announced that for a short-term agro credit up to Tk 150,000 there would be no need for CIB reporting and enquiry.
The central bank also increased interest rates from two percent to four percent under the government's six percent interest compensation facility for farming of pulses, oil seeds, spices and corn.
Starting this year, private banks will also receive this compensation, Atiur said.
"If a bank has an interest loss over six percent, it'll be counted as their CSR," he added.