Dhaka, Bangladesh (BBN) – Disbursement of farm credit exceeded the target in the outgoing fiscal year (FY) 2012-13 as the central bank has strengthened its monitoring and supervision to the lenders.
All banks achieved 103.80 percent or BDT 146.67 billion of their annual agriculture loan disbursement target, which was fixed at BDT 141.30 billion for the FY 13.
Of BDT 146.67 billion, six state-owned banks disbursed BDT 83.19 billion and the remaining BDT 63.49 billion was disbursed by the private commercial banks (PCBs) and foreign commercial banks (FCBs) in the FY 13.
“We’ve crossed the farm credit disbursement target through strengthening our monitoring and supervision from the very beginning of the FY 13,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
He also said the central bank will take punitive measures against six commercial banks those who failed to achieve the target of farm loan in FY 13.
The central banker also said the active functioning of district agriculture credit committees across the country has contributed to achieving the goal.
The disbursement of farm credits increased by nearly 12 per cent in the FY 13 compared to the previous fiscal following active persuasion of the commercial banks by the central bank, he said. “We’re working to ensure utilisation of the credit in the agriculture sector.”
The recovery of farm loans, however, rose to BDT 143.62 billion in the FY 13 from BDT 123.59 billion in the previous fiscal year, according to the BB officials.
“The recovery of agriculture credit increased in the FY 13 as a result of strengthening monitoring by the central bank,” another BB official said.
BBN/SSR/AD-13July13-1:21 pm (BST)