Global Journal of Management and Business Research, B: Economics and Commerce, Volume 21 Issue 5

Disbursement of agricultural credit by banks follows an upward tend. In 2001, disbursement of agricultural credit was Tk 30.20 billion. In 2020 it has reached at Tk 227.5 billion. The increase in agricultural credit disbursement has positive impact. It has increased the quality and quantity of input used in the production process of agriculture. Today’s agriculture uses sophisticated technologies such as reapers, tractors, axial flow pumps, seeds drills etc. That requires more capital. So the increase in agricultural credit disbursement can help the farmers by providing capital. As a result farmers can use improved technology in the production process that yield bumper production. The recovery of agricultural credit in 2001 was Tk 28.78 billion. It has reached Tk 212.5 billion in 2020. This shows that banks perform well in the recovery of the agricultural loan. Overdue literally means “past the due date”. Bills that aren’t paid on time are overdue. Overdue as percent of outstanding is Tk 60.69 billion but it has reached Tk 13.3 billion in 2020. This is because initially agricultural credit disbursed through government banks. But the performance was very poor because of inefficiency and corruption of the employees and bureaucratic problem and political interferences in government institutions. At present this situation is improving day by day after the establishment of good governance in government banks. Besides that participation of private commercial and foreign commercial banks also help to improve credit disbursement. Table 2: Comparative analysis of overdue as the percentage of the total outstanding agricultural credit by various banks during (2002-2020) (Tk in Billions) Outstanding agricultural credit Overdue Overdue as % of outstanding Year SCBs SBs PCBs FCBs SCBs SBs PCBs FCBs SCBs SBs PCBs FCBs 2002 33.46 66.03 _ _ 24.17 30.55 _ _ 72 46.27 _ _ 2003 34.80 68.96 _ _ 24.19 28.4 _ _ 69.51 41.18 _ _ 2004 37.5 73.2 _ _ 23.6 27.1 _ _ 62.9 37.02 _ _ 2005 40.89 81.65 _ _ 18.45 26.44 _ _ 45.12 32.38 _ _ 2006 49.69 85.37 _ _ 28.06 25.08 _ _ 56.47 29.38 _ _ 2007 49.11 85.89 _ _ 29.32 32 _ _ 59.70 37.26 _ _ 2008 49.11 98.92 16.73 3.01 26.33 28.81 0.50 0.00 53.12 29.12 2.99 0.00 2009 53.19 108.37 18.55 5.73 26.33 29.78 0.31 0 50.06 27.48 1.67 0 2010 60.99 128.32 21.08 5.19 26.46 32.93 0.38 0.00 43.38 25.66 1.80 0.00 2011 64.36 149.37 26.62 3.31 25.83 29.42 1.25 0.00 40.13 19.70 4.70 0.00 2012 67.56 147.37 42.56 2.26 23.99 35.22 1.31 0.00 35.51 23.90 3.08 0.00 2013 73.63 174.47 59.78 2.70 24.57 25.26 2.26 0 33.37 14.48 3.78 0 2014 79.07 199.42 64.01 3.83 25.39 47.95 2.78 0.0004 32.11 24.04 4.34 0.01 2015 84.04 177.09 66.11 2.13 26.21 38.94 2.14 0.0036 31.19 21.99 3.24 0.17 2016 87.16 175.08 80.24 2.29 23.02 32.01 1.75 0.0030 26.41 18.28 2.18 0.13 2017 94.60 188.11 104.22 3.55 25.64 38.88 2.56 0.003 27.10 49.46 2.46 0.08 2018 103.05 198.4 101.41 3.14 30.35 38.17 3.59 0.00 29.45 19.24 3.54 0.00 2019 107.19 209.83 108.51 4.22 23.98 33.26 9.68 0.00 22.37 15.85 8.92 0.00 2020 110.73 220.35 119.57 5.28 20.93 32.67 6.98 0.00 18.90 14.83 5.84 0.00 Source: Bangladesh Bank Annual Report (2002-2020) Contribution of Banks on Agricultural Development in Bangladesh © 2021 Global Journals 76 Global Journal of Management and Business Research Volume XXI Issue V Version I Year 2021 ( ) B