Kamruzzaman Bablu :
The government has formed a special stimulus fund of Tk 5,000crore for the agricultural sector to tackle the financial crisis caused by the coronavirus in FY 20-21.
The loan disbursement activities of this fund were supposed to start in April last year to end last September. However, in the context of the demands of the banks, the time for disbursement of loans was extended for three phases in nine months.
Out of 43 contracted banks, 20 banks failed to achieve half of their targets, even in 13 and a half months till May 2021, according to a report published by Bangladesh Bank. Now there is only seven days in hand to end the FY 20-21.
On condition of anonymity, a Bangladesh Bank official told The New Nation that the contracted banks were sent letters several times to disburse loans under the incentive package. An oversight committee has been also formed.
Collecting information, and providing advice directly over the telephone is sent to branch managers. Information is being collected on loan disbursed by branches of banks. Even the managing directors of the banks have been given a stern warning letter. But even then the banks are showing apathy in disbursing loans, he said.
“We have sought additional time to the central bank for disbursement the loan. Because this loan has to be given directly to the farmers. We do not have many experts in this field. But most of our branches are in the city. So it is difficult to give direct loan to the farmer. I remember that we have disbursed almost 100 per cent of this agri loan” Mirza Ilias Uddin Ahmed, Managing Director of the Jamuna Bank Limited, told the New Nation on Wednesday.
“I am personally very interested in disbursing this loan. Usually small loan borrowers do not default. Big borrowers default.” he said.
The BB report shows that, the deadline for disbursement of agricultural stimulus loan to address the financial crisis was set till September last.
But the banks were unable to disburse their allotted funds within this period and the time was extended for another three months till December. Again they were given three more months till March due to their failure of disbursement of the loan.
But due to failure to fulfil the target in March, the stimulus disbursement time was extended by three more months to June of this year. But out of 43 contracted banks, 20 banks have not been able to disburse even 50 per cent of their loans. Even 4 banks could not distribute even 15 per cent.
The report shows that the central bank announced a stimulus package of Tk 5,000 crore in April last year for the agricultural sector to tackle the financial crisis caused by Coronavirus. At the end of May 15 this year, it distributed Tk 3,953 crore or 79.07 per cent among the 1,70,532 individuals or organizations.
Of this, Bangladesh Agriculture Bank has distributed 97.84 per cent or Tk 1,662.24 crore of the total allocation to 83,768 farmers.
Besides, Agrani Bank, Bangladesh Development Bank, Rajshahi Krishi Unnayan Bank, Rupali Bank, Sonali Bank, AB Bank, Bank Asia, BRAC Bank, Exim Bank, Madhumati Bank, NRB Commercial Bank, One Bank, Shahjalal Islami Bank, Premier Bank and Uttara Bank have disbursed 90 to 100 per cent incentive loans.
However, out of 43 banks in which incentives were distributed, 20 banks did below 50 per cent. Of these, IFIC Bank 11.53 per cent, First Security Islami Bank 13.31 per cent, Southeast Bank 14.36 per cent, Trust Bank 14.78 per cent, Standard Bank 24.12 per cent, Dhaka Bank 24.42 per cent, Jamuna Bank 26.88 per cent, Al-Arafa Islami Bank 31.41 per cent, Global Islami Bank 33.10 per cent, Bangladesh Commerce Bank 33.19 per cent, Mutual Trust Bank 35.23 per cent, Social Islami Bank 36.45 per cent, Basic Bank 36.46 per cent, National Bank 39.38 percent, Dutch Bangla Bank 39.54 per cent, Union Bank 41.77 per cent, Shimanto Bank 41.92 per cent, The City Bank 44.88 per cent and the Pubali Bank 45.15 per cent.
