The New Nation - Internet Edition

BSS, Dhaka

As the government has given special attention to agriculture sector in this year's budget, banks have come up with the biggest ever credit programme to boost the country's agro- based economy.

Officials said the agriculture sector would get highest Taka 11,512.30 crore credit from various public and private banking channels this fiscal, which would be about 2,133 crore more than the previous year. Last year the total target of giving agriculture loan was Taka 9,389 crore.

Bangladesh Krishi Bank (BKB) has distributed around Taka 537.76 crore as agri loan over the last three months against the target of disbursement of Taka 4,600 crore this fiscal.

Bank sources said the government has a target of providing loans to nine sectors including agro-based industrial sector this fiscal year. Taka 4,250 crore would be directly given to agriculture sector and Taka 350 crore has been earmarked for agro-based industries.

"We have so far disbursed 12 percent of total target and are taking all-out preparation for disbursement of highest loan in the coming Boro season," said ATM Anisur Rahman, Deputy General Manager of Bank's Branch Control and Business Department (BCBD).

From October, Anis said, Taka 1,400 crore loan would be distributed among sharecroppers and marginal farmers through 952 branches of the Bank and it would be the highest ever allocation for Boro cultivation.

The government has targeted the genuine sharecroppers and marginal farmers for the loan, he said adding a credit distribution management committee comprising the local UP members and distinguished persons would monitor the matter.

A central team of the Bank would also monitor the disbursement process to ensure transparency, he added.

A senior official of the Bank however said, if needed, they would sanction more credit for farmers as ordered by the government policymakers so that agriculture production is not hampered.

The Bank has also set a target to provide Taka 400 crore loan for each of the fisheries and livestock sectors and Taka 50 crore for machinery for farming and irrigation.

Out of that target, the sources said, Taka 31.69 crore was disbursed for fisheries, Taka 28.64 crore for livestock and Taka 3.24 crore for machinery.

The BKB has so far distributed Taka 35.08 crore out of total target of Taka 350 crore for development of agro-based industries.

This year two specialized banks- BKB and Rajshahi Krishi Bank (RKB)-

would give agriculture loan of Taka 8,453 crore to farmers while 29 private banks would give Taka 2,594.40 crore.

Ten foreign banks have also set a target to give Taka 464.90 crore agriculture loan to farmers.

Government-owned Sonali Bank would give agri loan of Taka 1,000 crore, Janata Bank Taka 700 crore, Agrani Bank 525 crore and Rupali Bank Taka 120 crore.

Bangladesh Palli Unnayan Board also has a target to give Taka 850 crore while Bangladesh Commercial Bank Ltd. (BCBL) is set to disburse Taka eight crore as agri credit to farmers.

Among the private banks, Islami Bank set highest target of Taka 880 crore to give as agri-loan this year. Pubali Bank would give Taka 200 crore, AB Bank Taka 132.25 crore, National Bank Taka 105.65 crore, Bank Asia Taka 100 crore, City Bank Taka 90 crore, Uttara Bank Taka 80 crore, Dutch Bangla Bank Taka 80 crore, Basic Bank Taka 60 crore, Shahajalal Bank Taka 60 crore and Mutual Trust Bank Taka 54 crore.

Brac Bank and Al Arafah Islami Bank will give Taka 50 crore each as agriculture loan while Prime Bank will give Taka 45 crore, Premier Bank Taka 40.50 crore, South East Bank Taka 35 crore, IFIC Bank Taka 35 crore, Mercantile Bank Taka 32 crore, Exim Bank Taka 25 crore, UCBL Taka 25 crore and each of Dhaka Bank, Eastern Bank, Bangladesh Commerce Bank and Jamuna Bank Taka 20 crore for agriculture sector.

Among the foreign banks, Citi Bank NA has a target to distribute Taka 172 crore as agriculture loan and Standard Chartered Bank Taka 150 crore, HSBC Bank Taka 50 crore, Al Falah Bank Taka 30 crore, National Bank of Pakistan 27.50 crore, Commercial Bank of Cylon 25 crore, Habib Bank Taka five crore and State Bank of India Taka five crore.

As the foreign banks and many private banks have no branches in the rural areas, the loan will be distributed through non- government organizations at higher interest rate.