Bangladesh: Monthly Report on Agricultural and Rural Financing - April 2022

Transcription

1. Monthly Report On Agricultural and Rural Financing1 April 2022 Research Department (Internal Economic Wing) Bangladesh Bank 1 Comments and suggestions may be sent to: nur.begum@bb.org.bd zahira.hasin@bb.org.bd ratna.khatun@bb.org.bd 1
2. Executive Summary Disbursement Target The annual agricultural credit disbursement target was fixed at TK 28391 .00 crores for FY22, which was 7.98 percent higher than TK 26292.00 crores targeted in FY21. During July 2021-April 2022 total agriculture credit disbursement stood at TK 23756.72 crores, which was 83.68 percent of the total disbursement target for FY22. Actual Disbursement and Recovery In April 2022, actual agricultural credit disbursement by all banks stood at TK 2252.52 crores, which was 21.14 percent higher than TK 1859.43 crores for the same month of the preceding year. Recovery of agricultural credit stood at TK 2051.26 crores in April 2022, which was 23.45 percent higher than TK 1661.65 crores for the same month of the preceding year. During July 2021-April 2022, total agricultural credit disbursement stood at TK 23756.72 crores, which was 16.61 percent higher than TK 20372.74 crores in July 2020-April 2021. Total recovery of agricultural credit stood at TK 22027.50 crores during July 2021-April 2022, which was 2.76 percent higher than TK 21436.54 crores recovery in July 2020-April 2021. Outstanding Balance and Overdue Outstanding balance (including interest) of agricultural credit stood at TK 49263.90 crores at the end of April 2022, which was 8.03 percent higher than TK 45600.85 crores at the end of April 2021. Overdue of agricultural credit stood at TK 6274.65 crores at the end of April 2022, which was 0.79 percent higher than TK 6225.75 crores at the end of April 2021. Overdue of agricultural credit as percentage of outstanding stood at 12.74 percent at the end of April 2022 which was 13.65 percent at the end of April 2021. Microcredit In April 2022, Grameen Bank and other nine large NGOs disbursed TK 12414.83 crores as microcredit and recovered TK 11231.42 crores. The total outstanding balance of microcredit of these organizations stood at TK 86132.78 crores, of which the overdue of microcredit stood at TK 4814.74 crores around 5.6 percent at the end of April 2022. 2
3. Target and Disbursement of Agricultural Credit The disbursement target of agricultural credit by all scheduled banks was fixed at TK 28391 .00 crores for FY22, which was 7.98 percent higher than TK 26292.00 crores targeted for FY21 and 11.29 percent higher than actual disbursement TK 25511.25 crores of FY21. The disbursement targets of all State-Owned Commercial Banks (SOCBs) and State-Owned Specialized Banks (SOSBs) together, and Private Commercial Banks (PCBs) and Foreign Commercial Banks (FCBs) together were fixed at TK 11045.00 crores and TK 17346.00 crores, respectively. These disbursement targets were 38.90 percent and 61.10 percent of the total agricultural credit disbursement target respectively. Chart 1: Monthly trends of Agricultural Credit Disbursement In April 2022, the actual disbursement of 5000 which was 14.11 percent higher than TK 1973.95 crores compared to the previous month and 23.45 Tk in Crore agricultural credit stood at TK 2252.52 crores, 4000 3000 2000 1000 0 percent higher than TK 1859.43 crores compared to the same month of the preceding year (Chart- 2021-22 2020-21 Source: Agricultural Credit Department.Bangladesh Bank. 1). During July 2021-April 2022, the actual disbursement of agricultural credit stood at TK 23756.72 crores, which was 16.61 percent higher than TK 20372.74 crores compared to the same period of the preceding year. The achievement was 83.68 percent of the total disbursement target for FY22 (Annexure Table-2). Chart-2 and Chart-3 show the sector wise agricultural credit disbursement. From the chart it is observed that during July 2021-April 2022, 45.7 percent of the total agriculture credit was distributed to the crop sub-sector followed by live-stock & poultry (18.1%), fisheries (12.5%), poverty alleviation (7.5%) and others (16.2%). On the other hand, the share of crop sub-sector was 52.6 percent, followed by live-stock & poultry (13.7%), fisheries (11.5%), poverty alleviation (7.0%) and others (15.2%), during July 2020-April 2021. 3
4. Chart 2 : Sector-wise Agriculture Credit Disbursment: July 2021-April 2022 Poverty Alleviation 7.5% Chart 3:Sector-wise Agriculture Credit Disbursment: July 2020-April 2021 Poverty Alleviation 7.0% Others 16.2% Others 15.2% Crops 52.6% Crops 45.7% Fisheries 12.5% Fisheries 11.5% Live-stock & Poultry 18.1% Live-stock & Poultry 13.7% Source: Agricultural Credit Department, Bangladesh Bank. Among the cluster of banks, PCBs’ share of agriculture credit disbursement was 55.3 percent followed by SOSBs (31.7%), SOCBs (10.0%) and FCBs (2.9%) during July 2021-April 2022, whereas PCBs disbursed 51.8 percent, followed by SOSBs (33.9%), SOCBs (10.3%) and FCBs (4.0%) during July 2020-April 2021. Chart-4 and Chart-5 show the bank group-wise agriculture credit disbursement respectively during July 2021-April 2022 and July 2020-April 2021 (Annexure Table-2). Chart 5: Share of Bank group -wise Agriculture Credit Disbursement July 2020-April 2021 Chart 4: Share of Bank group-wise Agriculture Credit Disbursement July 2021-April 2022 FCBs 2.9% SOCBs 10.0% FCBs 4.0% SOCBs 10.3% SOSBs 31.7% SOSBs 33.9% PCBs 55.3% PCBs 51.8% Source: Agricultural Credit Department, Bangladesh Bank. 4
5. Recovery In April 2022 , the recovery of agricultural credit stood at TK 2051.26 crores, which was compared to the previous month. On the other hand it was 23.45 percent higher than TK 1661.65 Tk in Crore 13.76 percent lower than TK 2378.56 crores 4000 Chart 6; Monthly Trends of Agricultural Credit Recovery 3000 2000 1000 0 crores compared to the same month of the preceding year (Chart-6). 2021-22 During July 2021-April 2022, the recovery stood 2020-21 Source:Agricultural Credit Department.Bangladesh Bank. at TK 22027.50 crores, which was 2.76 percent higher than TK 21436.54 crores compared to the same period of the last year. Among the type of banks, share of recovery of PCBs’ was 47.4 percent followed by SOSBs (39.0%), SOCBs (10.4%) and FCBs (3.2%) during July 2021-April 2022, whereas share of PCBs recovery was 54.8 percent, followed by SOSBs (33.0%), SOCBs (8.3%) and FCBs (3.9%), during July 2020-April 2021. Chart-7 and chart-8 show the bank group-wise agricultural credit recovery for July 2021-April 2022 and July 2020-April 2021 respectively. Chart 8; Share of Bank group-wise Credit Recovery: July 2020-April 2021 Char 7: Share of Bank group-wise Credit Recovery: July 2021-April 2022 FCBs 3.2% SOCBs 10.4% FCBs 3.9% SOCBs 8.3% SOSBs 33.0% PCBs 47.4% PCBs 54.8% SOSBs 39.0% Source: Agricultural Credit Department, Bangladesh Bank. 5
6. Outstanding Balance At the end of April 2022 , total outstanding balance of agricultural credit stood at TK 49263.90 crores, which was 8.03 percent higher than TK 45600.85 crores at the end of April 2021(Annexure Table-2). Overdue Overdue of agricultural credit stood at TK 6274.65 crores at the end of April 2022, which was 0.79 percent higher than TK 6225.75 crores at the end of April 2021. Overdue of agricultural credit as percentage of outstanding stood lower at 12.74 percent at the end of April 2022 compared to 13.65 percent at the end of April 2021 (Annexure Table-2). Monthly position of disbursement, recovery and outstanding of agricultural credit are shown in Annexure (Table-1). Refinance Bangladesh Bank extended the repayment schedule of the refinance facility to BKB for a total of TK 2000 crores till June 30 2022, of which TK 1000 crores were sanctioned in FY19 and TK 1000 crores in FY20. Besides, Bangladesh Bank sanctioned TK 500 crores as refinance to RAKUB in FY21, which is extended till 2 February 2022 and in February 2022 RUKUB repaid the interest amount of TK 19.44 crores. Total outstanding amount of refinance stood at TK 2756.13 crores at the end of April 2022 which was TK 5028.22 crores in April 2021. Bangladesh Rural Development Board (BRDB) The disbursement target of Bangladesh Rural Development Board (BRDB) has been fixed at Tk. 1062.50 crores for FY22. In April 2022, it disbursed Tk 92.44 crores and recovered Tk 75.32 crores. In April 2021, it disbursed Tk 66.17 crores and recovered Tk 44.90 crores. During July 2021April 2022, BRDB disbursed Tk. 928.39 crores and recovered Tk 859.69 crores, which were Tk. 890.90 and Tk. 827.74 crores respectively in the same period of the preceding year (Annexure Table-3). 6
7. Bangladesh Shomobay Bank Limited (BSBL) The disbursement target of BSBL a non-scheduled bank has been set at Tk. 25.00 crores for FY22. Both in April 2022 and 2021 BSBL didn’t disburse any amount but recovered TK 0.17 crore and TK 0.13 crore respectively. During July 2021-April 2022, BSBL didn’t disburse any amount but it recovered Tk. 2.87 crores, which were Tk. 0.50 crores and Tk 3.45 crores respectively during July 2020-April 2021(Annexure Table -3). Palli Karma Shahayak Foundation Palli Karma Shahayak Foundation (PKSF) extended loan facility amounting to Tk. 498.43 crores to its 278 POs (Partner Organizations) and recovered Tk. 336.28 crores in April 2022. Total outstanding balance and overdue stood at Tk. 8253.15 crores and Tk. 238.79 crores respectively at the end of April 2022. Microcredit Operations by Grameen Bank & Large Nine NGOs2 In April 2022, Grameen Bank and large nine NGOs disbursed Tk. 12414.83 crores in productive and income generating activities in the rural areas under their microcredit program, which was 247.44 percent higher than that of the same month of the preceding year. Under this program, about 29.76 million members availed loan facility through 11208 branches. It is noteworthy that Grameen Bank, BRAC and ASA disbursed 84.10 percent of the total microcredit among the top 10 Micro Finance Institutions (MFIs) in April 2022. However, in April 2022, total recovery of the microcredit by these 10 MFIs stood at Tk. 11231.42 crores, which was 85.77 percent higher than that of the same month of the preceding year. At the end of April 2022, total outstanding of these 10 MFIs stood at Tk. 86132.78 crores, which was 16.23 percent higher than that of the same month of the preceding year. Overdue of microcredit of these MFIs stood at Tk. 4814.74 crores at the end of April 2022, which was 1.68 percent lower than that of the same month of the preceding year. At the end of April 2022, the overdue as percentage of outstanding stood at only 5.59 percent (Annexure Table-4). 2 BRAC, ASA, Proshika, TMSS, RDRS Bangladesh, CARITAS Bangladesh, Jagoroni Chakra Foundation, Society for Social Services [SSS], Shakti Foundation. 7
8. Recent Measures Taken by Bangladesh Bank to Facilitate Rural Financing  According to the ACD Circular Letter No. 01: 29 July 2021, Bangladesh Bank published Agricultural and Rural Credit Policy and Program for the fiscal year 2021-22. More details information is available in the link: https://www.bb.org.bd/en/index.php/mediaroom/circular/acd/jul292021acd01.pdf  According to the ACD Circular Letter No. 02: 14 September 2021, Bangladesh Bank declared refinance scheme of Taka 3000 crores for agriculture sector to combat financial crisis due to Covid-19 pandemic. More details information is available in the link: https:// www.bb.org.bd/mediaroom/circulars/acd/sep142021acd02.pdf  According to the ACD Circular Letter No. 03: 26 October 2021, Bangladesh Bank published Agriculture & Rural Credit Policy and Programme of FY 2021-22 regarding inclusion of new fruits/crops. More details information is available in the link: https://www.bb.org.bd/mediaroom/circulars/acd/oct262021acd03.pdf  According to the ACD Circular No. 01: 03 January 2022 Bangladesh Bank announced refinance scheme of Taka 500 crore to create employment and to eliminate poverty for the people who have returned home due to Covid 19 pandemic and other reasons. More details information is available in the link: https://www.bb.org.bd/mediaroom/circulars/acd/ jan032022acd01.pdf 8
9. Annexure Table-1 : Monthly Agricultural Credit Performance by the Scheduled Banks (In crore Taka) Month Disbursement Recovery Outstanding (at the end of Month) FY21 FY22 FY21 FY22 FY21 FY22 July 1508.73 942.11 2278.90 1687.71 44835.57 45195.81 August 1947.45 1732.67 1732.74 1681.71 45045.82 45260.89 September 1228.13 2535.72 2265.99 2216.69 44041.91 44041.91 October 1945.54 2179.63 2011.22 43913.45 46353.79 November 2306.04 2868.43 2269.08 2741.69 43971.93 46523.25 December 3142.09 3723.49 3364.73 3254.78 44089.09 January 2070.74 2558.56 1965.17 1870.83 44321.71 48355.34 February March 2032.01 2332.49 2474.65 1973.95 1436.12 2282.43 2133.05 2378.56 45053.28 45348.47 48834.80 48891.14 April 1859.43 2252.52 1661.65 2051.26 45600.85 49263.90 May 1597.65 2000.54 45237.50 June 3540.96 3686.82 45939.80 Total 25511.35 2694.62 23756.72 27123.90 Source: Agriculture Credit Department, Bangladesh Bank. 9 22027.50 47659.51