Subject:
“Success and Failure of Agrani Bank in Promoting SME Development: Way Forward.”
Definition of
SME Finance: As saying SME finance we understood financing in small and medium
size industry generally. But SME is a
types of concept which will not be able to define in one single definition. As
saying SME finance there is understood financing in initiative/ industry of
cottage, micro, small and medium for the purpose of development of the country
overall and decreasing poverty, creating income, creating workplace, and quick
industrialization of the country.
The purpose of
financing in SME:
The purposes of
financing in SME as follows:
·
Development and expansion uickly of the small and medium industry
·
Using lazy skilled workforce and raw materials of the country
·
Increasing production of the country
·
Creating standard workspaces
·
Decreasing poverty
·
Creating income and removing income discrimination
·
Using skilled local resource and technology
·
Making women involved in the main highways of the finance
·
Including finance service of facility deprived people of the
country
·
Insuring entrance in the finance of organizational initiative of
small and women
·
Making a happy country developing the country quickly overall
Success in the
sector of SME of Agrani Bank:
1.
Agrani Bank Limited has been operating the finance activities in
the sector of SME from the very beginning of its born. Subsequently every branch
are operating finance activities of SME through specifying target in the very beginning
of every year as per approval of the board committee. At present there has been
obtained institutionalization as bank following overall banking sector in
financing SME of Agrani Bank Limited. Agrani Bank Limited of its goals,
distribution, achievements, liabilities of last 5 years has been mentioned as
follows:
|
Years
|
Targets (In
crore taka)
|
Distribution
of debt (In crore taka)
|
Rate of
achievement
|
Liability (In
crore taka)
|
|
2013
|
1930.00
|
1403.00
|
73%
|
61490.00
|
|
2014
|
2080.00
|
1956.60
|
94%
|
54296.00
|
|
2015
|
2245.00
|
2191.00
|
98%
|
46500.00
|
|
2016
|
2694.00
|
2620.49
|
97%
|
44185.10
|
|
2017
|
3232.80
|
3298.19
|
102%
|
5661.60
|
There is seen
from the description as mentioned above that, Agrani Bank Limited has been able
to achieve increasing targets of 10% in the year of 2013, 2014 and 2015 and 20%
in the year of 2016 and 2017. There has been achieved 102% of the goal of the
distribution of SME debt in 2017.
2.
There has become able to bring bellow 10% as per instruction of
Bangladesh Bank of the rate of classified debt of women entrepreneurs.
Page No- 2
Failure in the Sector of SME of Agrani Bank:
1.
As per
instruction of Bangladesh Bank there has to be divided based on the trading/
business in in manufacturing and service of 32.00%, 17.00% and 51.00%
respectively. At present the liability of SME debt of taka 5656.16 crore among
them the amount of SME debt in the sector of manufacturing, service and
trading/ business of 1550.08 crore, 330.72 crore and 3775.36 crore taka, which
is of total SME debt as like 27%, 6% and 67% respectively. Meaning as per
instruction of Bangladesh Bank we have not become able to divide based on
sectors.
2.
There has been
distributed taka 168.95 crore in 2017 though the distribution goals were 232.28
crore taka in the sector of women entrepreneurs.
3.
We have not
been able to achieve of 19% of the rate of classified debt of total SME in 2017
though it was saying to bring the bellow of 10% of classified loans.
The ways to exceed:
1.
Correct
information has not been found as because of miss matching of reporting
correctly. Meaning in some sectors there is preparing in the sector of debt
trading/ business of in manufacturing and service sectors. As a result the
information is seen not matching.
2.
There has to be
taken steps to make reach SME debt in the level through quarter through agent
banking.
3.
There has to be
enforced monitoring through on side supervision beside off side supervision.
4.
For the time
being there has to be increased the flow of debt in the sector of manufacturing
and service not giving any new debt in the trading sectors.
5.
There has be
given debt to women entrepreneurs at least 1 person in every months quarters
for women entrepreneurs.
6.
As per approval
of operation committee of Agrani Bank Limited, 2018 there has been taken SME
debt distribution activities through every branches specifying SME debt
distribution goals of 3879.36 crore taka. Similarly authority has been taken
different steps for exceeding marking our failures. As is hoped the failures
will be able to cope up soon through implementing the steps.
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