The central bank has raised the farm loan disbursement target by 10.66 per cent to Tk24,124 crore for the fiscal 2019-20, compared to the target of the previous year.
The farm loan disbursement target was Tk 21,800 crore in 2018-19.
BB Deputy Governor SM Moniruzzaman has announced the annual agricultural and rural credit policy and programme on Tuesday.
According to BB policy, every bank must disburse at least two per cent of its total lending in the agricultural sector.
The central bank has set the projected target of farm loan disbursement for the current year on the basis of the banks’ outstanding loans and advances.
The banks distributed 108 per cent of their annual farm loan disbursement target in FY19 due to an increased credit demand from the sector.