Contribution of Privatized Commercial Banks in Agricultural Investment – A Case of Islami Bank Bangladesh Limited

Abstract

The aim of this paper is to identify the contributions of Privatized Commercial Banks (PCBs) in Agricultural Investment (AI) of Bangladesh, particularly the case of Islami Bank Bangladesh Limited (IBBL). As a part of methodology interview of concerned officials have been taken to explore the actual scenario of AI done by IBBL. And the Action plan of IBBL for Agricultural Investment (2011-2015) has been thoroughly reviewed for secondary data analysis. Findings show that AI has got three major sectors where the investment may be or has been made. They are Crops, Fisheries and Livestock. IBBL has planned to invest at least 3.20% of investable fund in the agriculture sector (3.00% in agriculture and 0.20% in fishing, forestry and logging). As a part of plan IBBL has set a target of 9500 Million BDT to invest in agriculture where 50% will be for Crops only. Trend analysis shows that IBBL has got steadily rising market share in this sector investment in comparison to the National Target. In 2006-2007 the market share of IBBL was 3.24% and in 2010-2011 it climbed at 7.53%. It’s a remarkable achievement of IBBL in agriculture sector. It’s an original research work which may furnish food for thought to the Bangladeshi PCBs particularly for Islamic Banks so they can feel inspiration to come up with investments in this sector.