Bank Asia's financing helped small farmers become major producers

Bank Asia received the "Best Bankers Award" from Jashore District Administration in 2012 for its significant role in promoting agriculture. What is new in Jashore now? Why did the bank prioritise Jashore a decade ago? Are there other success stories like Jashore?

Bank Asia has been working on agricultural development to help build a poverty-free economy. To achieve this, we identified potential agricultural areas across the country. Jashore emerged as a major contributor to agricultural production, with many farmers engaged in diverse crop cultivation. 

Recognising this, we set up our own network, collaborated with microfinance institutes (MFIs), and managed projects to support these farmers and rural communities. Our agent-centric business model, including agent banking and partnership programmes, has assisted 35,711 beneficiaries in Jashore with agricultural credit worth a total of Tk156.97 crore.

We have success stories in agricultural financing and development beyond Jashore. In North Bengal, we established Farmer Centres in partnership with Business Finance for Poor in Bangladesh. 

Additionally, we initiated an aquaculture project in the Southern region with World Fish. Lalmonirhat has a significant number of farmers producing maize, which serves as an import substitute product. 

Moreover, Bank Asia has a strong customer base in the Rajshahi region. These endeavours serve as models for similar activities nationwide.

Bank Asia's Agricultural Credit Department has been operational since 2006. How is the current relationship between your bank and agri-loan beneficiaries?

Bank Asia extended agricultural loans for the first time under the program "Daridro Bimochon Kormoshuchi" back in 2001. After that, we focused on providing agri loans through MFIs due to network limitations. Then the agent banking network helped further expand loan coverage at a lower interest rate. 

Since inception 1,019,225 farmers have received benefits from Bank Asia and about 29% of the direct borrowers (annually) are repeat customers, which indicates a sustainable banker-client relationship.

How has Bank Asia contributed to its vision of a poverty-free Bangladesh through agricultural financing?

Bank Asia aims to contribute to the national economy as a premier bank by participating in agricultural and rural development. To achieve this, we established the Agricultural Credit Department in 2006 and introduced various need-based financing products and services for crops, fisheries, poultry, livestock, and agricultural machinery. 

We ensure proper fund utilisation by considering factors like crop calendar and cultivation period. Additionally, we offer loans for cultivating import substitute products at lower interest rates and facilitate rural farmers and small businesses under the Bangladesh Bank's Tk10 refinance scheme. 

Our financing has helped small farmers graduate to larger ones, and we have introduced digital credit approval systems and A-cards for smoother and faster lending processes.

Post-harvest losses in Bangladesh are significant due to inadequate warehouses, cold chains, and logistics. How can banks contribute to developing a smoother supply chain and storage facilities for fresh farm products?

While it is challenging for banks to directly manage supply chains, we provide financial support for warehouses and cold storage. 

Additionally, we have established Farmer Centres to ensure agricultural value chain systems where farmers can sell their products, purchase inputs, and access banking services. 

We have also tailored loan products to allow additional time for storage and selling, enabling farmers to get better prices.