Farm loan performance to be brought under CAMELS ratings
Bangladesh Bank has warned eight private commercial banks for their worst performance in disbursing farm loans in the first five months of the current fiscal year, said officials of the central bank.
The eight banks disbursed below 10 per cent farm loan of their targeted programme from July to November of FY 2013-14, they said.The BB also informed the banks that their farm loan performance would be brought under the CAMELS rating from January to June tenure of 2014.
The BB has already finalised the CAMELS rating policy relating to the farm loan performance, a central bank official told New Age on Tuesday.
The BB in a meeting with the top officials of the PCBs on Monday said that it would take punitive action against the banks which would fail to disburse their targeted farm loan for the FY 14.
The eight banks which disbursed below 10 per cent farm loans are Citibank NA, National Bank of Pakistan, State Bank of India, Woori Bank, Bank Asia, BASIC Bank, BRAC Bank and Standard Bank.
According to the latest BB data, three foreign commercial banks – State Bank of India, Woori Bank and National Bank of Pakistan — did not disburse any farm in the first five months of FY 14.
The eight banks argued with the BB that the existing political unrest had hit their farm loan programme in recent months, the central bank officials said.
-With New Age input
