Farm loan disbursement goes up 20% in July-November
In the first five months of the current financial year, banks disbursed Tk10,773 crore in agriculture loans, against the target of Tk28,391 crore, amounting to 38% of the targeted amount
Loan disbursement to the agriculture sector saw 20% increase year-on-year in the July-November period of the current financial year.
In the first five months of the current financial year, banks disbursed Tk10,773 crore in agriculture loans, against the target of Tk28,391 crore, amounting to 38% of the targeted amount, according to the latest data of the Bangladesh Bank.
The central bank says even though banks disbursed fewer loans in the first three months of the current fiscal year, disbursement picked up in October which continued throughout November.
Banking sector insiders said industrial loan disbursement was very low when the pandemic was at its peak, putting a brake on investment in various sectors. But due to the government's focus on keeping food production unaffected, disbursement of loans increased in the agriculture sector.
In July-November, the state-owned eight banks could meet 45% of their farm loan disbursement target of Tk11,045 crore.
On the other hand, disbursement by the 41 private banks stood at around 31% of the Tk16,664 crore target.
In FY21, the banking sector managed to meet 97% of their target. Last year, the agri loan disbursement target of banks was Tk26,292 crore.
In April 2020, the government announced a stimulus package of Tk5,000 crore to facilitate the agriculture sector's recovery. From the fund, an amount of Tk4,295 crore has been disbursed till 30 June this year. Later on 14 September, the Bangladesh Bank created a refinancing scheme of Tk3,000 crore after Covid infections began to rise.
Even though loan disbursement has increased in the first five months of the current financial year, only Tk10,339 crore was recovered, down by Tk387 crore from the amount in the same period of the preceding fiscal year.
Meanwhile, loan disbursements to the cottage, micro, small and medium enterprises rose 8.75% year-on-year in the third quarter of the calendar year 2021. In July-September, lenders disbursed a total of Tk42,075 crore to the ventures, which was Tk38,689 crore in the corresponding period of the last year, according to the latest data of the central bank.
