Trust Bank expanding rural coverage to boost agribusiness

What has been the response to Trust Bank's innovative loan products for green power and organic farming over the years, and what are your future plans to further contribute to sustainable agriculture?

The agricultural sector in Bangladesh has seen significant growth in recent years, thanks to focused investment and improved technology. This has boosted food security, reduced rural poverty, and enhanced health, nutrition, and education across the country.

Despite progress though, challenges persist, including the loss of agricultural land, declining soil fertility, salinisation, and inadequate investment in research and training. 

Trust Bank has received positive feedback for its loan products but aims for a broader impact, particularly for marginal communities. The bank is developing new products and expanding rural branches to better serve these customers and promote sustainable agriculture.

Does Trust Bank focus on crop sub-sectors to assist farmers in coping with extreme weather impacts on rice and vegetable yields, alongside its presence in farm sub-sectors like fishery, dairy, and poultry?

Trust Bank has not been involved in the crop sub-sector to assist farmers affected by extreme weather yet, as there haven't been proposals from our branches. However, Trust Bank is committed to financial inclusion and supporting marginalised communities. 

We will take the lead in providing assistance where needed, aiming to make a significant impact on improving their situation and contributing to sustainable goals.

Do you offer loans for farm mechanisation, especially considering reports that share-croppers struggle to access bank loans for agricultural machinery?

While we do not have a specific product named "loans for farm mechanisation," our "Trust Projukti" product can address this need for farm mechanisation. 

This loan, designed for light engineering purposes, can be utilised for farm mechanisation as well. We are committed to providing loans with excellent customer service and attractive offers.

However, clients must submit proposals outlining their genuine requirements and future growth potential in their respective areas. Sometimes, proposals lack sufficient experience and clarity, making it challenging for the bank to assess potential business opportunities.

How can banks assist in developing smooth supply chains and storage facilities for fresh farm products to reduce post-harvest losses in Bangladesh?

Post-harvest losses are a significant issue in Bangladesh, presenting an opportunity for banks to contribute to agricultural sector development. A critical constraint is the lack of storage systems, currently addressed by government-owned conventional warehouses.

However, there's a pressing need for year-round storage facilities to prevent losses during surpluses and disasters. Climate hazards worsen the situation, impacting agricultural production. 

Adapting storage structures to suit climatic conditions is essential for resilience. Banks can develop tailored products considering regional weather variability, consulting stakeholders for mutual profitability, and enhancing financial capacity for farmers.

Is the decline in agriculture loans, with 11 banks distributing less than 30% of their target in July-December, due to banks' decreased interest in farmers or farmers' reduced inclination to take bank loans?

No, this is not true.

Banks are expanding their presence in rural areas, evident from the significant growth in rural branches over the past 2–3 years, demonstrating their interest in rural development and farmers' welfare. 

However, merely establishing branches isn't sufficient; product design and communication play crucial roles. Product features must align with clients' needs and convenience to attract the target demographic effectively.

Revisiting loan security measures and streamlining the delivery process are essential. Farmers require flexible repayment options tailored to their seasonal income patterns. While farmers express interest, the challenge lies in effectively communicating the benefits of services when needed. Moving forward, there is a need to adopt appropriate approaches to raise awareness and deliver services effectively.

Can private banks expand rural coverage to boost agro-businesses and create rural jobs further?

Private banks have a significant opportunity to expand rural coverage, improving lives through economic activity. Many rural residents conduct banking activities informally, often resorting to NGOs or informal sources for financial support. This limits rural development and productivity, as advanced technology and banking infrastructure remain underutilised.

Dedicated desks with innovative ideas in branches can enhance rural banking systems, addressing concerns about charges and formalities that deter rural residents from opening accounts. Bankers require training to simplify banking terms and procedures, facilitating greater rural engagement and boosting agribusinesses and job opportunities in Bangladesh.