Like other sectors of the economy, Islami Bank Bangladesh Limited has been contributing significantly in the country’s agriculture sector. Islami Bank contributes in Agricultural investment
Since its inception, the bank has been working for development of agricultural sector, which is the livelihood of 80 percent of people of the country directly or indirectly. Over the last 5 years the Bank invested more than 60 billion Taka in agriculture sector.
The Bank also trained two and a half million farmers training on modern technology for the cultivation. The Bank is also giving priority investment in agricultural marketing, agricultural support industries and storaging of agro goods.
The Bank is contributing to achieve the country’s economic prosperity through implementation of investment projects like Agricultural Implements Investment Scheme, Rural Development Scheme (RDS) and Small Business Investment Scheme.
Under the directive of Bangladesh Bank to invest two and a half percent of total investment of each scheduled bank in agriculture and rural sectors, Islami Bank had to invest Tk 75.5 billion in the last fiscal in the same sector.
The bank has invested a total of 1.319 billion in this sector, which is 9 percent of disbursed amount among all bank and 23 percent among the private banks in the sector. Food security, employment generation, poverty alleviation, human resources development of the country are closely tied with the agriculture. Eighty percent of the people directly or indirtectly are involved in agriculture.
Considering the issues, Islami Bank has been giving special importance on the agricultural sector. The Bank has taken various programs for development of the agricultural sector. Through the implementation of these programs the Bank is playing role for the national growth.
The bank is expanding it investment protfolio by giving priority to the sharecroppers, marginalized groups in society including small and disadvantaged peasant of the country.
Production of high-yielding crops are being given encouraged in the regional level. A total of Tk. 53.59 billion have been distributed among 1,394 entrepreneurs in the Agro-based industrie. Special investment are being given the import oriented and high-priced crops sectors.
The Bank has also been investing in the priority sectors of the government including pulses, oilseeds, spices and maize cultivation at grace profit rate. The Bank has invested nearly three crore in the last three years at concessionary rate.
Agriculture contributes 18.6% of the country’s GDP. Islamic Bank has been helping to increase GDP rate by giving priority investment in the agricultural sector since inception. In 2012-13, Islam Bank has invested Tk 13.07 billion in the agricultural sector, which is 180 percent of the target. In the last fiscal year, the Bank invested Tk. 13.22 billion, which is 175 percent of the target.
The agricultural sector contributes 45 percent of the country’s total labor force. Islami Bank not only invest in the agricultural sector, but contributes to the creation of labor skills by providing training and technical assistance to the borrowers.
In the last three years, the Bank has so far trained 2 lakh 53 thousand people in agriculture, livestock and fisheries. In 2014, 1 lac 57 thousand 187 people were trained through 2,362 training workshops. Farmers and fishermen are becoming expert through training resulting in improving crop production, cattle rearing and fish farming helping the country to be self-sufficient in food and nutrition.
They are becoming solvent in returning investment to the bank as well as becoming self-sufficient. Positive vision, skilled manpower and careful monitoring of the Bank management act behind the unprecedented success in the agricultural sector.
The Bank introduces seperate Agriculture Investment Policy with a view to ensuring agriculture policy, monitoring and fair statement. The department is currently working under the Rural Development Scheme.
The Bank adoptes different strategies each year for success in agriculture. Before investing, a survey is conducted to detect the actual recipient of the agricultural investments. About 60 percent agro investment is deployed in crops cultivation. Keen supervision is taken as area based cluster investment. The Bank does not invest in any sector harful for the environment.