Non-performing loans (NPLs) in Bangladesh’s agriculture sector surged by 42.5% to Tk 61.79 billion in July-January FY 2024-25, up from Tk 43.36 billion in the same period last year, mainly due to lower recovery caused by floods and political unrest. The share of NPLs in total agricultural loans increased to 10.95%, compared to 7.79% in FY 2023-24. Public sector banks held Tk 54.05 billion of NPLs, while private and foreign banks had Tk 7.74 billion. Agricultural loan disbursement fell by over 9% to Tk 192.15 billion, with public banks contributing Tk 80.93 billion. However, loan recovery improved to Tk 217.77 billion from Tk 203.10 billion last year. The central bank anticipates a decline in NPLs following the Boro harvest, while experts emphasize stronger monitoring to enhance loan recovery. Banks have met 50.57% of their Tk 380 billion agricultural loan disbursement target for FY 2024-25, compared to 60.44% last year.
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