Staff Reporter :
Eight banks have fallen significantly short of their target in disbursing agriculture loans in the first seven months (July-January) of the current fiscal year 2023-24 while four of them even failed to achieve 5 percent of their targets.
Overall, all the banks operating in the country, 61 in number, disbursed Tk 21,154 crore in total in agricultural loans between July 2023 to January 2024, which is 60.44 percent of the target for FY24, according to a report released by the Bangladesh Bank.
The central bank has set a target for banks to disburse Tk35,000 crore in agricultural loans for the current fiscal year which was Tk 30,811 crore for the immediate
past fiscal year 2022-23.
State-owned commercial and specialized banks aimed to disburse Tk 12,030 crore, while private and foreign commercial banks targeted Tk 22,970 crore.
The farm loans enable farmers to invest in inputs like seeds, fertilizers and machinery, leading to increased productivity and economic growth.
Additionally, farm loans contribute to rural development by providing income opportunities and improving infrastructure, ultimately reducing poverty in rural areas.
The report revealed that four banks have fallen significantly short, disbursing less than 5 percent of the target during this period. Notably, Citizens Bank and Woori Bank, a foreign bank, have completely failed to disburse any loans in the agriculture and rural sectors.
Padma Bank, and Madhumati Bank, also struggled in during the period disbursing less than 5 percent of the targeted amount despite only five month left of the current fiscal.
