Agricultural Banks in Bangladesh

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International Journal of Business and Management

Vol. 6, No. 4; April 2011

Performance Evaluation of Agricultural Banks in Bangladesh

Dr. Tanbir Ahmed Chowdhury (Professor)

Department of Business Administration, East West University

43 Mohakahli C/A, Dhaka- 1212, Bangladesh

Tel: 880-2-988-2308, Ext - 244


Ms. Sarahat Salma Chowdhury (Lecturer)

Department of Business Administration, East West University

43 Mohakahli C/A, Dhaka - 1212, Bangladesh

Tel: 880-2-988-2308, Ext- 283

Received: November 11, 2010


Accepted: December 12, 2010



Bangladesh has a primarily agrarian economy. Most Bangladeshis earn their living from agriculture. The

performance of this sector has a major impact on the overall economic development of the country. For efficient

performance of this sector proper credit facilities and adequate support is essential both from government and

private sector. In this paper we have analyzed the development and growth of specialized agricultural banks in

Bangladesh and the different services and facilities they are providing for the overall improvement of this sector.

It is observed that both agricultural banks are able to achieve a steady growth in terms of employees, branches,

deposits, loans and advances during the period 2004-2008. Different trend equations and square of correlation

coefficient (r2) have been tested for different activities of agricultural banks of Bangladesh. Finally, results are

interpreted in this context and suggestions are given for improving the future performance of these banks.

Keywords: Agriculture, Deposits, Loans, Poverty alleviation, Micro credit

1. Introduction

The characteristics and the evolution of the agricultural sector around the world are diverse and finance is a key

issue in the evolution of the agricultural sector. Agriculture is a key sector of the economy in many developing