Banks disburse 84% of agri loans target in 10 months
Loan disbursement has increased by 16.67% in comparison with the past year
Disbursement of loans in the agricultural sector since the outbreak of Covid-19 has increased with banks having already met 84% of the target in the first ten months of the current fiscal year.
Loan disbursement has increased by 16.67% in comparison with the past year.
In the current financial year, banks have disbursed a total of Tk23,757 crore, while farmers have repaid a total of Tk22,027 crore, including loans from previous years, according to data from the Bangladesh Bank on agricultural credit.
During the same period (July-April) of the previous financial year, Tk20,373 crore in loans was disbursed.
According to the data for the last financial year, public sector banks achieved 81% of the target and foreign and private banks achieved 75%. The overall loan disbursement met 77% of the target.
Describing the growth as satisfactory, industry insiders said banks will be able to meet the target by the end of the financial year.
While growth has been good, not all banks have met the target.
Fourteen banks failed to deliver even half of the target. In contrast, 22 banks have already disbursed 100% of the target, with some even exceeding it.
Of the total, state-owned banks disbursed Tk9,933 crore against the target of Tk11,045 crore, meaning 90% of the target has been met.
At the same time, farmers have repaid Tk10,871 crore, or more than a thousand crore that they have taken in loans in the 10 months of the fiscal year.
While most state-owned banks have disbursed loans in line with the target, Basic Bank was only able to disburse 24% of the objective.
So far, BDBL is the only government bank to be able to lend more than 100% of the target.
Foreign and domestic commercial banks have completed disbursement of 80% of the target. The loan amount disbursed was Tk13,823 crore against the target of Tk17,346 crore.
Farmers have repaid loans of Tk11,157 crore to those banks.
The second phase of the Special Incentive Refinancing Scheme For Agriculture Sector has so far lent Tk1,862 crore from the Bangladesh Bank fund of Tk3,000 crore.
Apart from this, the Bangladesh Rural Development Board (BRDB) had set a target of lending Tk1,062 crore in the current financial year from its own funds. At the end of 10 months, they were able to distribute Tk928 crore.
The BRDB also took Tk145 crore from Sonali Bank to give away as loans for the purpose.
According to the central bank data, only the Commercial Bank of Ceylon has been unable to disburse a single penny of the Agricultural and Non-Farm Rural Credit in the current financial year. They were given a loan disbursement target of Tk66 crore.
It is followed by Modhumoti Bank which has disbursed only 3% or Tk2crore of its target of Tk78 crore.
On the other hand, 22 banks, including BRAC Bank, Islami Bank, Meghna Bank, Mercantile Bank, NCC Bank, NRB Commercial Bank, One Bank, Prime Bank, Pubali Bank, Bank Al-Falah and Standard Chartered Bank met the target before the end of the financial year.
