BB declares new agri loan policy
Bangladesh Bank on Tuesday unveiled the agriculture and rural credit policy and programme for the current financial year 2013–14 focusing on some environment-friendly
new sectors of the country’s agriculture zone.
BB governor Atiur Rahman unveiled the new farm loan policy at the central bank headquarters in the capital.
The BB has set a Tk 14,595-crore farm loan disbursement target for the FY 2013–14 which is 3.29 per cent higher than the target set for the previous FY.
All banks collectively disbursed Tk 14,667.49 crore, or 103.80 per cent of the target, in farm loans in the just concluded FY 13
Senior officials of the central bank, and managing directors and chief executive officers of different local and foreign banks attended the programme.
Atiur said the BB had included some environment-friendly sectors with the new farm loan policy in a bid to ensure the sustainable agriculture production.
He said, ‘Vermi-compost has been included with a credit norm in the policy. Besides, vermi-compost and bio-fertiliser have been approved as a new sector of BB’s refinance scheme of Tk 200 crore for renewable energy’.
Burmese grapes, lemon, hog-pulm, sapota, malta have been included in this policy as new crops and the credit norms of the fruits are also included, he said.
The credit norms of oil palm has been determined in this policy which was absent in the previous FY, he said.
The BB governor said, ‘The credit limit and interest rate of the sectors included in refinance scheme of renewable energy (solar panel, bio-gas, integrated bio-gas plant and bio-fertiliser) has been revised to make more investment-friendly.’
The BB has set a Tk 14,595-crore farm loan disbursement target for the FY 2013–14 which is 3.29 per cent higher than the target set for the previous FY.
All banks collectively disbursed Tk 14,667.49 crore, or 103.80 per cent of the target, in farm loans in the just concluded FY 13.
The BB governor said the central bank would deduct the non-disbursed farm loans from the banks’ deposit money which had failed to disburse hundred per cent loans to the farmers.
The BB will disburse the deducted money as farm loans by other banks, he said.
The BB took the same measure against the failed banks in the FY 12.
The amounts will be kept with the central bank fund and it would be repaid if the commercial banks could fulfil their annual target for the FY 14, he said.
BB data showed seven local and foreign commercial banks had failed in fulfilling their annual farm loan disbursement target in the FY 13.
The failed banks are National Bank of Pakistan, Bangladesh Commerce Bank, BRAC Bank, IFIC Bank, National Bank, Shahjalal Islami Bank and Southeast Bank.
A number of MDs and CEOs of scheduled banks demanded in the meeting for bringing down the general provision of five per cent on the farm loan.
The general provision of the farm loan should be 0.25 per cent like SME loan or maximum one per cent, they said.
Association of Bankers, Bangladesh chairman Mohammed Nurul Amin said that the BB should take measure to reduce the general provision of five per cent on the farm loan in a bid to encourage the banks to disburse more loans in the sector.
He also suggested that the BB should expand the periphery of the refinance fund in the agriculture sector.
BB deputy governor SK Sur Chowdhury said that the banks should increased the farm loan disbursement considering its profit-oriented investment.
The BB will take preventive measure against the failed banks in disbursing farm loan, as they (failed banks) usually creates crisis in the overall farm loan disbursement, he said.
BB deputy director MD Shahid Reza presented a slideshow on different aspects of the new farm loan policy.
-With New Age input
