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Farm loan disbursement is on course to meet the target as banks have disbursed 68.15 per cent of the target in eight months (July-Feb) of the current fiscal.
Bangladesh Bank's latest loan update shows that around Tk 216.60 billion were disbursed in the agriculture sector against the target set for the fiscal of Tk 309.11 billion.
The update revealed that 12 banks had achieved 100 per cent of the target set for the disbursement of agricultural loans in the first eight months of FY2022-23, reports UNB.
However, 14 banks are lagging behind. Even after eight months, these banks could not distribute even 50 per cent of the targeted farm loans.
Banks that have disbursed more than 100 per cent 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 Tk 86.23 billion while foreign and private sector banks have disbursed Tk 124.34 billion.
According to the BB, till February 2023, the disbursement of total agricultural loans stood Tk 512.36 billion. Of this, Tk 209.86 billion has been paid back, taking the loan recovery rate at 41 per cent.
Default stood at Tk 39.32 billion, which is 7.68 per cent of loans.
As per government policy, agricultural production has been emphasised considering food security.
The BB is also working towards that goal. Banks have been given strict instructions to increase agricultural credit disbursement and it is being constantly monitored.