60% of agri credit target achieved in Jul-Jan
Agricultural and non-firm rural credit disbursement has been on the right trajectory for the first seven months of the current fiscal year on the back of a growing demand for loans among winter vegetable growers.
Banks disbursed Tk17,055 crore, which is 60.07% of the sector's annual target and 6.26% up from a year earlier, according to the latest report by the Bangladesh Bank.
The disbursement target for fiscal 2021-22 has been set at Tk28,391 crore.
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In the July-January period of fiscal 2020-21, the disbursement was Tk14,149 crore, which was 53.81% of the annual target for the agricultural sector.
According to the Bangladesh Bank, lenders had lagged far behind the target for the first two months of the current fiscal year when the agricultural loan disbursement dropped by 21% from a year ago.
Banks disbursed Tk2,558 crore in January, Tk3,724 in December, Tk2,864 crore in November, Tk2,695 crore in October, Tk2,536 crore in September, Tk1,733 in August, and Tk942 in July.
In July-January, loan recovery from the agricultural sector stood at Tk15,465 crore, which was 4.25% lower compared to the corresponding period of the previous fiscal year.
As of January, outstanding agricultural loans has reached Tk48,355 crore and classified loans stood at Tk3,940 crore, which is 8.15% of the outstanding amount.
A central bank official, speaking on condition of anonymity, said the policy support by the Bangladesh Bank contributed to the increase in the agricultural credit.
An industry insider said agriculture has experienced steady growth in crop production for years as high attention has been given to the sector.
Non-crop food production like fisheries and livestock, and poultry farming, are also gaining momentum.
Banks could not achieve their agricultural credit disbursement targets for the first time in fiscal 2019-20 due to the Covid-19 outbreak in the country, according to a Bangladesh Bank report.
In FY21, banks disbursed Tk25,511 crore, which was 97% of their targets.
As of June last year, lenders disbursed Tk4,295 crore from a stimulus package of Tk5,000 crore announced for the agricultural sector.
In September last year, the government formulated another refinancing programme of Tk3000 crore for the agricultural sector.
