BB to disburse Tk 35,000 crore agri-credits in FY24

Staff Reporter :
The Bangladesh Bank (BB) sets the target of agriculture and rural credit disbursement for banks at Tk 35,000 crore for the current financial year of 2023-2024.

The target of disbursing agricultural loans is 13.60 percent higher than the previous fiscal year as the target in FY23 was Tk 30,811 crore.

During the last fiscal year, the country’s banks disbursed Tk 32,829.89 crore as farm loan among the 3,618,545 farmers which is 106.55 percent of the target.

AKM Sajedur Rahman Khan, deputy governor of the central bank, came up with the information at a press conference on Sunday while detailing the Agricultural & Rural Credit Policy and Program of FY24.

“The plan is also aimed at achieving the government’s three prime objectives of Sustainable Development Goals (SDGs) including eradication of poverty, ensuring safe and nutritious food and develop rural economy through plenty of credit disbursement in the rural area, said AKM Sajedur Rahman Khan.

The Central bank also increased the disbursement ratio from 30 percent to 50 percent of individual bank’s targets through its own networks.

It also instructed the banks to disburse minimum 13 percent in the fisheries sector and minimum 15 in livestock sector of banks’ own target Special instructions have also been issued regarding disbursing agri credit for agriculture at rooftop, as well as cultivating Vannamei prawns, Crab, and Kuccia.

The BB also instructed banks to include Credit Norms for black rice, pati grass and avocado.

There has also been an increase in the ceiling at Tk five lakh for income-generating activities in rural areas, as well as disbursing agri-credit to the new farmers on a priority basis, increase the disbursement of agri credit at agri-equipment subsector, and also disbursing agri credit to establish livestock farms at the leased lands besides the own lands of the farmers.

The central bank has hoped that the policies will contribute to achieving the target of sustainable economic development and upgrade the life standard of the rural people through agricultural and rural credit.

During the press conference, top officials of the central bank, CEOs of different banks and journalists from different media were present.