BB raises agricultural credit target to Tk38,000cr

Bangladesh Bank on Thursday announced a new “Agricultural and Rural Credit” disbursement policy with the target of disbursing a Tk 38,000 crore loan for the fiscal year 2024-25 to ensure food security in the country.

The loan target is 8.57 per cent higher than that of FY 2023-24.

Against the target of Tk 35,000 crore set in the last financial year FY 2023-24, the banks distributed agricultural and rural loans of Tk 37,153,90 crore which is Tk 4,324.01 crore more than the 32,829.89 crores distributed in the previous fiscal year 2022-2023 or 13.17 per cent more.

The central bank Governor,  Dr Ahsan H Mansur, in a press conference at Jahangir Alam Conference Hall in the central bank headquarters, unveiled the agricultural and rural credit disbursement policy for FY2024-25.

The target for state-owned and specialised banks has been set at Tk12615 crore, while foreign and private sector banks have been given a target of Tk 25,385 crore.

The governor said that considering the importance of adequate credit flow in the agricultural sector to achieve GDP growth through increasing agricultural production in the country and controlling inflation, the central bank has set a target of Tk 38,000 crore for agricultural and rural credit distribution in the current financial year.

"To distribute adequate loans at low interest rates under the Agricultural and Rural Credit Policy, the local private banks are required to disburse at least 50 per cent of the target through their network and compulsorily 60 per cent of the target to the crops and crops sector, 13 per cent to the fisheries sector and 15 per cent to the livestock sector," said Dr Mansur.

Deputy Governors, heads of different departments of the central bank, Managing Director (MD) and representatives from all banks were present.