In the first three months of the current fiscal year, farmers have repaid loans of Tk7,076 crore, which is a 26.67% increase from the same period of last year.
The repayment was Tk5,586 crore in the first quarter of the last fiscal year, according to the latest report of the Bangladesh Bank.
In the July to September quarter of the fiscal 2022-23, banks have disbursed Tk6,584 crore in the agriculture and rural credit sectors, which is 2.93% higher than the last fiscal year.
In the current financial year, banks have a target of total agricultural loan disbursement of Tk30,911 crore, which is 8.88% more than the last fiscal year.
In the fiscal 2021-22, the loan disbursement target was Tk28,391 crore and banks achieved the goal in full.
Economists and bankers say agriculture is one of the driving forces of Bangladesh's economy. The importance of agriculture is being increasingly observed in view of the Covid pandemic and the recent global volatility.
Therefore, the Bangladesh Bank is always trying to help the agricultural sector through necessary financing. For this reason, the agricultural loan amount has been increased in the new financial year. And loan disbursement is very good in the first three months of the new financial year. Distribution in this sector will increase in the future, they added.
According to data from the Bangladesh Bank, in the first three months of the fiscal 2021-22, banks disbursed Tk5,210 crore in agricultural and rural loans.
Accordingly, the disbursement has been increased by Tk1,374 crore in the first three months of the current fiscal year compared to a year ago.
In the fiscal 2022-23, state-owned banks have a disbursement target of Tk11,758 crore while private-sector lenders are supposed to lend Tk19,153 crore in the agriculture sector.
In the first three months through September, state-owned banks have disbursed loans of Tk2,355 crore while their private sector peers have disbursed Tk4,228 crore.
At present, the amount of agricultural loans in the banking sector is Tk50,246 crore. Out of which defaulted loans in the agricultural sector till September is Tk3,986 crore, which is 7.093% of the total loans.
Agricultural credit is provided in two categories – crop and non-farm such as livestock and fisheries sectors. In the first three months of the current financial year, banks have disbursed Tk5,484 crore in crop loans. Besides, Tk1,100 crore of loans has been disbursed to the non-farm sector.