Eighteen commercial banks disbursed below 40 per cent of their annual targets of agricultural loans in the first half of the current financial year, according to the latest Bangladesh Bank data.
The BB data, however, showed that the disbursement of agricultural loans by all banks increased by 12.04 per cent in the July-December period of the FY 2012-13 compared with that in the same period of the FY 2011-12.
Banks collectively disbursed Tk 6,420.44 crore, or 45.44 per cent of their annual target of Tk 14,130 crore, in farm loans in July-December of the FY 2012-2013.
In the first six months of the FY 2011-12, banks had disbursed Tk 5,730.30 crore, or 41.52 per cent of their annual target of Tk 13,800 crore, in farm loans.
Farm loan disbursement by banks usually increases during the aman and the boro cultivation seasons that fall on the first six months of a financial year, a BB official told New Age on Thursday.
‘The farm loan disbursement in the first six months increased slightly because of the two cultivation seasons,’ he said.
Besides, farmers’ dependency on the bank loans increased due to a rise in the prices of agricultural equipments and fertiliser, he said.
According to the BB data, the 18 banks, which disbursed below 40 per cent of their farm loan annual targets in the first six months of the FY 2012-13, are Sonali Bank that disbursed 26.47 per cent of its annual target, Woori Bank 14.76 per cent, Bank Asia 15.32 per cent, Bangladesh Commerce Bank 30.05 per cent, BRAC Bank 30.06 per cent, Dhaka Bank 33.62 per cent, EXIM Bank 19.88 per cent, Dutch-Bangla Bank 34.29 per cent, IFIC Bank 21.48 per cent, Mutual Trust Bank 25.98 per cent, National Bank 34.11 per cent, Prime Bank 36.45 per cent, Shahjalal Islami Bank 17.49 per cent, Southeast Bank 20.31 per cent, Standard Bank 11.46 per cent, The City Bank 20.77 per cent, Trust Bank 20.17 per cent and UCBL 30.85 per cent.
The BB official said that a bank should disburse at least 50 per cent of its annual target of farm loans in the first six months of a year to achieve its target.
The 18 banks failed to disburse the expected amount of agricultural loans due to a lack of effective measures, he said.
In the first six months of the FY 2012-13, the state-owned commercial banks — Sonali, Janata, Agrani and Rupali — and the two specialised banks — Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank — disbursed Tk 3,812.17 crore, or 44.29 per cent of their annual loan disbursement target of Tk 8,607 crore, in farm loans.
The private and foreign commercial banks disbursed Tk 2,608.27 crore in agricultural loan in July-December, which was 47.23 per cent of their total annual loan disbursement target of Tk 5,523 crore.