Banks dispense Tk 19,215cr in agricultural and rural credit

The Bangladesh Bank has set an agricultural and rural credit target of Tk38,000 crore for the fiscal year to support food production in the country. The disbursement so far, amounting to Tk19,215 crore, reflects the ongoing commitment to achieving this goal.

However, the progress has been uneven, with two banks—Padma Bank and Woori Bank—failing to release any loans in this sector. Furthermore, three other banks have contributed less than 10 percent of their target. These include Madhumoti Bank, Union Bank, and HSBC. Specifically, Union Bank, with a target of Tk100 crore, has only disbursed Tk4.89 crore, while Madhumoti Bank, aiming for Tk33 crore, has allocated only Tk2.5 crore (7.58 percent). HSBC, targeting Tk285 crore, has managed to disburse just 8.77 percent, amounting to Tk25 crore.

As part of efforts to ensure food security, the government has mandated that at least 2 percent of total loans be directed towards the agricultural sector. To enforce this, Bangladesh Bank has introduced penalties for any banks failing to meet their agricultural loan targets.

Additionally, the government has established specific targets for loans to other sectors. At least 13 percent of the total loan amount should be allocated to the fisheries sector, which has already received Tk1,715 crore (14.33 percent of the target). Similarly, the livestock sector is expected to receive 15 percent of the total agricultural loan target, with Tk4,664 crore already disbursed (12.27 percent).

Other notable disbursements include Tk731 crore for poverty alleviation, Tk9,101 crore for crop production, Tk148 crore for agricultural machinery purchases, Tk136 crore for irrigation equipment, Tk67 crore for grain storage and marketing, and Tk2,910 crore for fish farming.