Remittance crosses record Tk. 1 trillion

Staff Reporter :
Agent banking is getting a momentum in the country as the expatriate Bangladeshis are sending remittances through the agent banking channel and the total remittance inflow crossed the record Tk one lakh crore since its inauguration in 2013.
As a result, the rural savings are increasing and helping it in boosting rural economy too, according to the Bangladesh Bank (BB).
According to the BB data released on Wednesday, it shows that remittance worth more than Tk1.06 lakh crore has been distributed through agent banking till September this year.
Deposits are being accumulated in different banks through agent banking across the country and loans are being disbursed too.
Expatriates have sent remittances a total of Tk 1,06,629 crore till last September, which was more than Tk 97,000 crore till last June.
 Remittance increased by Tk 7,380 crore, which is 9.87 percent in the last three months, while Tk 31,803 crore or 42.50 per cent increased in one year, according to the BB data.
However, the deposit in the agent banking channel stood at Tk30,325 crore at the end of September this year, marking a 33 per cent rise in the last one year.
People concerned said customers are gradually interested in agent banking as many banks are opening agent banking outlets. Besides, the remittance growth is driving the sector further. According to the central bank, 31 banks are currently running 20,177 agent banking outlets. Of these, 17,384 are in rural areas and 2,793 in the urban regions.
Mohammad Ziaul Hasan Molla, Deputy Managing Director and head of agent banking of Bank Asia, said, “Remittance is a major contributor to the deposit growth of this sector. So far, remittance worth $12.5 billion has been distributed through this channel.”
According to him, “The channel is delivering remittances at the doorsteps of rural areas. Proper encouragement for the sector would help increase the amount of remittance in the country.”
The sector has already disbursed loans of Tk685 crore at the end of September. Stakeholders said they are emphasising on disbursing more loans through this channel.
According to the BB, in the last one year, loan disbursements through the agent banking channel have increased by around Tk200 crore.
Selim RF Hussain, chairman of Association of Bankers Bangladesh (ABB) said, “Still a large part of the country’s working populations are outside the banking sector. They are gradually being brought into the channel through agent banking. However, compared to the amount of deposit collected through agent banking, the loan disbursement is much less.”
Mentioning that loans are being disbursed in the city areas by collecting deposits from villages, he said, “Loan disbursement should be increased in the rural areas to promote the economy there. BRAC Bank is trying to increase loans in villages. Other banks should also come forward in this regard.
“Opportunities are there to lend money for the Cottage, Micro, Small and Medium Enterprise (CMSME) sector in the rural areas. We need to exploit the opportunity.”
According to the BB data, Sonali Bank, NRB Commercial Bank, Standard Bank, Premier Bank, Mercantile Bank, Shahjalal Islami Bank, Exim Bank, Padma Bank, Prime Bank, Global Islami Bank, Meghna, South East and South Bangla Agri and Commerce Bank didn’t disburse a single penny as loan among the bank clients in the last one decade. Bangladesh Bank Spokesperson and Executive Director GM Abul Kalam Azad said that the banks have taken approval for agent banking by complying with all conditions.
It is natural that they will deal with loans, deposits and remittances, he said adding that it would be examined why 13 banks did not give loans.