Farm loans disbursement is on course to meet the target as banks have disbursed 68.15 percent of the target in eight months (July-Feb) of the current fiscal.

Bangladesh Bank's latest loan update shows that around Tk 21,660 crores were disbursed in the agriculture sector against the target set for the fiscal of Tk30911 crore.

The update revealed that 12 banks had achieved 100 percent of the target set for the disbursement of agricultural loans in the first eight months of FY2022-23.

However, 14 banks are lagging behind. Even after 8 months, these banks could not distribute even 50 percent of the targeted farm loans.

Also Read: 45 services on agriculture available on single digital platform

Banks that have disbursed more than 100 percent 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 Tk 12,434 crore.

According to the BB, till February 2023, the disbursement of total agricultural loans stood Tk 51,236 crores. Of this, Tk20,986 crores have been paid back,so the loan recovery rate is about 41 percent.

Also Read: Boost research on agriculture to increase production: PM Hasina tells scientists

Default stood at Tk 3932 crores, which is 7.68 percent of loans.

As per government policy, agricultural production has been emphasized 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.