In the first 11 months of the current fiscal year, banks distributed 33,296 crore taka in agricultural loans, reaching 89.41% of the target. The majority, 14,874 crore taka, was allocated to crop production, accounting for 45% of the total. The loan distribution target for the 2023-24 fiscal year is 35,000 crore taka. To reduce dependence on microfinance institutions, the central bank has mandated that private banks distribute at least 50% of agricultural loans through their own networks. The loan allocation targets include at least 60% for crops, 13% for fisheries, 15% for livestock, and the remainder for other sectors. Rising global commodity prices and the ongoing dollar shortage have led the government to focus on increasing domestic production over imports. Consequently, banks are being closely monitored to ensure increased agricultural loan distribution, which is essential for bolstering food security. The report also highlights significant loan distributions in livestock, fisheries, poverty alleviation, agricultural machinery, and irrigation equipment.
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