Agricultural loan disbursement in Bangladesh saw a significant rise in the July-November period of FY24 compared to the same period in FY23. The disbursement target for FY24 is Tk 350 billion, with 43.66% achieved in the first five months. Farm loan payments by scheduled banks in November increased modestly compared to October 2023.
Agriculture and rural credit in July-November rose by 19.55% to Tk 152.80 billion from Tk 127.77 billion in FY23. Scheduled banks disbursed Tk 33.19 billion in November, a 5.87% increase from October. The outstanding balance with interest of farm credit reached Tk 545.90 billion in November, marking an 8.74% increase from the previous fiscal year. Total credit recovery was recorded at Tk 144.18 billion in July-November 2023, a 12.01% increase from the same period in the last fiscal year. The central bank instructed banks to disburse farm credit at a concessional interest rate of 4.0% for cultivating import-substitute crops.
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