Farm loan disbursement is on course to meet the target as banks disbursed 68.15% of the target in eight months (July-Feb) of the current FY23.
Bangladesh Bank's latest loan update shows that around Tk21,660 crore were disbursed in the agriculture sector against the target set for the fiscal of Tk30,911 crore.
The update revealed that 12 banks had achieved 100% of the target set for the disbursement of agricultural loans in the first eight months of FY23.
However, 14 banks are lagging behind.
Even after eight months, these banks could not distribute even 50% of the targeted farm loans.
Banks that have disbursed more than 100% of the target include Bank Al-Falah, Commercial Bank of Ceylon, Habib Bank, State Bank of India, Bank Asia, Dhaka Bank, One Bank, Simanta Bank, Uttara Bank, Citibank NA, HSBC, and Uri Bank.
According to the report, state-owned banks have distributed Tk8,623 crore while foreign and private sector banks have disbursed Tk12,434 crore.
According to Bangladesh Bank, till February 2023 the disbursement of total agricultural loans stood at Tk51,236 crore.
Of this, Tk20,986 crore has been paid back, taking the loan recovery rate to 41%.
Default stood at Tk3,932 crore, which is 7.68% of loans.
As per government policy, agricultural production has been emphasized considering food security.
The Bangladesh Bank is also working towards that goal. Banks have been given strict instructions to increase agricultural credit disbursement and it is being constantly monitored.
