Tuesday, July 24, 2012

Banks to be punished for farm loan failure: Bangladesh Bank


Bangladesh Bank, the country’s central bank, on Tuesday warned the banks that they would be punished in case of failure to disburse the targeted farm loans.

“We will cut 3 percent of non-disbursed farm loans from the respective banks’ accounts,” Governor Dr Atiur Rahman told top bankers at the launch of the Agriculture and Rural Credit Policy and Programme for fiscal 2012-13 at BB.

“Non-compliance has a cost,” Atiur told the bankers.

If a bank fails to disburse Tk 20 crore out of its annual target of Tk 100 crore, the BB will keep Tk 60 lakh (@Tk 3 lakh per Tk 1 crore.

The BB has set farm loan disbursement target for all banks (47) operating in Bangladesh at Tk 14,130 crore for 2012-13, up by only 2.39 percent from the previous year.

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