Nearly 0.2m farmers facing certificate cases

Between January 1991 and May, 2018, some 11772 farmers could not be traced even after warrants of certificate cases were served.

As a result, over Tk 415.39 million disbursed as agri-loan has remained unrealised.

Banking sources said the number of certificate cases against missing borrowers is high in river erosion-prone areas.

"Borrowers leave areas losing their lands and homes causing huge financial loss to the banks," a central bank source told the FE. Nearly 0.2 million farmers are facing certificate cases filed by the country's state-run banks for non-payment of loans, sources said.

At least Tk 512.55 billion of six state-owned banks (SoBs) remained stuck in such cases against over 167179 cases filed against farmers to recover the money from farmers, Bangladesh Bank (BB) statistics show.

The BB statistics show that in May last, some 1337 certificate cases were settled recovering only Tk 48.24 million while at the same time, 341 fresh cases involving over Tk 16.34 million were filed.

Until May last, the Bangladesh Krishi Bank (BKB) had the highest 81211 cases pending, involving over Tk 2.68 billion.

In the same month, some 376 cases involving over Tk 14.58 million were settled. The bank could not trace 4558 borrowers after issuance of warrants involving Tk 139.10 million loan at the end of May last.

The Rajshahi Krishi Unnayan Bank (RAKUB) had 25957 pending cases involving over Tk 1.30 billion during the month under review. The bank had issued some 2584 warrants involving Tk 155.20 million until May last. But the borrowers could not be traced.

The Agrani Bank Ltd had 25009 pending cases under which over Tk 276.13 million remained unrealised until May last. The bank settled 398 cases and filed 170 fresh ones in the same month. It had issued 1605 warrants involving over Tk 43.35 million but the borrowers could not be traced.

The Janata Bank Ltd had 16435 pending cases with Tk 382.71 million remaining unrealised until May last. It settled 217 cases and filed 21 fresh ones in the same month. It had served 1,696 warrants of certificate cases involving Tk 32.8 million. Here too, the borrowers could not be found.

Until May last, the Sonali Bank Ltd had 14784 pending cases involving over Tk 406.91 million. It settled only 126 cases in the same month and filed 69 fresh cases. The bank had issued 960 warrants at the end of the same month to borrowers who could not be traced.

Until May, 2018, the Rupali Bank Ltd had 3,783 pending cases involving over Tk 66.79 million. The bank settled only seven pending cases in the same month.

However, both the BB and the government authority concerned recently put thrust on reducing the number of certificate cases and recover the money involved, a senior official of the BB said.

"We are constantly asking the bank authorities to bring down the number of cases and to be cautious while granting new loans," he cited.

The district agriculture coordination committees concerned led by the deputy commissioners (DCs), review the certificate cases and the committee gives necessary steps and directives in this connection.

The DCs also ask the local bank managers and Upazila Nirbahi Officers (UNOs) to settle the cases as early as possible and recover the money.

[email protected]