BB raises agri loan disbursement target to 13.60%

The Bangladesh Bank (BB) has raised the agri-credit disbursement target to 13.60% amounting Tk35,000 crore for the current fiscal year.

The disbursement target for the immediate past fiscal year 2022-23 (FY23) was Tk30,811 crore.

"To achieve the government's three prime objectives of sustainable development goals (SDGs) - eradication of poverty, ensure safe and nutritious food and develop rural economy through plenty of credit disbursement in the rural area - the Bangladesh Bank (BB) has published the annual Agricultural and Rural Credit Policy and Programme for the financial year 2023-2024," said BB Deputy Governor AKM Sajedur Rahman Khan while announcing the target at a press conference at the central bank headquarters in the city. 

Considering the increased demand of agricultural and rural credit, disbursement target for the state-owned and specialised commercial banks is fixed at Tk12,030 crore and for the private and foreign commercial banks is fixed at Tk22,970 crore. 

In the previous financial year (2022-23), all the scheduled commercial banks disbursed agricultural and rural credit of Tk32,829.89 crore, which is approximately 106.55 percent of the affixed target. 

The agricultural and rural credits were disbursed among 36,18,545 persons in total of which 18,81,933 women borrowers have received Tk12,752.46 crore. Besides, 27,36,087 small and marginal farmers have received around Tk22,402.15 crore from different banks. 

Moreover, Tk18.09 crore was disbursed among 3,449 farmers of char, haor and less developed area of the country.

In the context of present global economic situation, to ensure the food security of the people and to develop a sustainable agricultural credit system, there are some new inclusions in the current agricultural credit policy. 

Some of them are, increasing the disbursement ratio from 30 percent to 50 percent of individuals bank's target through its own networks; instruction to disburse minimum 13 percent in fisheries sector and minimum 15 percent in livestock sector of banks own target; instruction for disbursing agri-credit for agriculture at rooftop; instruction for disbursing agri-credit for cultivating Venami prawns, Crab, Kuccia; inclusion of Credit Norms for Black rice, Pati grass and Avocado; increasing the ceiling at 5 lakh Taka for income-generating activities in rural areas; instruction for disbursing agri-credit to the new farmers at priority basis; instruction to increase the disbursement of agri-credit at agri-equipment subsector; instruction to make the branch officials accountable to the bank's appropriate authority for not achieving the target; instruction for disbursing agri credit to establish livestock farms at the leased lands besides the own lands of the farmers and instruction to take steps for recruiting necessary manpower at the branch level.

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

Among others, senior officials of the central bank, CEOs of different banks and journalists from different media were present.