Bank lending to the agriculture sector in December 2023 decreased by 21.74% year-on-year, with disbursements totaling Tk3,046 crore compared to Tk3,892 crore in December 2022. However, in the first six months of the fiscal year, banks disbursed Tk18,326 crore, reflecting a 9.9% increase from the previous fiscal year.
Farmers’ reduced interest in new loans due to election uncertainties and liquidity constraints in banks contributed to the decline. The central bank aims for Tk35,000 crore disbursement in agricultural loans for FY24, with banks achieving 52.36% of the target by December.
Total outstanding agricultural loans reached Tk55,395 crore in December 2023, up from Tk50,997 crore a year earlier. State-owned banks disbursed Tk6,568 crore, accounting for 54.60% of their target, while private foreign banks achieved 52.36% of their target by distributing Tk11,758 crore during the period. Eleven banks distributed less than 30% of their target in July-December.
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