Farm loan disbursement grew 14.2 percent to Tk 8,820 crore between July and January from the same period a year ago, with state banks accounting for most of it.
Eight state banks, including four specialised banks, disbursed Tk 5,756 crore in the first seven months of this fiscal year, up 27 percent year-on-year, according to the central bank.
“We are happy with the growth of agro-credit,” Atiur Rahman, governor of Bangladesh Bank, said yesterday at a meeting with bankers.
Banks have set a target to disburse Tk 14,595 crore in farm loans for the current fiscal year, which is 3.3 percent higher than in the previous year.
Rahman said he is hopeful of achieving the annual target of agri-credit this year, as banks have already disbursed 60.43 percent of their annual target in the first seven months.
Disbursement of farm loan by private and foreign banks, however, dropped around 4 percent in the first seven months of the current fiscal year.
Private and foreign banks rolled out a total of Tk 3,064 crore in farm loans in the July-January period, down from Tk 3,191 crore in the same period a year ago.
At the meeting, the governor also instructed the new banks and foreign banks to focus more on farm credit.
Seven of the eight new banks failed to disburse any fund for the farm sector during the period.
“As per conditions of bank licence, new banks have to allocate 5 percent of their total annual credit for farm loans. They must comply with the rule,” Rahman said.
Seven foreign banks also failed to disburse any money for the sector between July and January.