Banks have disbursed agriculture credit of Tk2,473 crore more in the first seven months of the current fiscal year 2023-24 compared with the disbursement in FY2022-23.

According to the latest report of the Bangladesh Bank (BB), the achievement of the agriculture credit disbursement target was 60.44 percent or Tk21,154 crore in the first seven months of FY 2023-24. During the same period of the previous fiscal year the amount of loan disbursement was Tk18,684 crore or 60.64 percent of the target.

While the total amount increased the percentage rate has decreased slightly as the total volume of agriculture credit was raised in FY 2023-24.

The BB-set agriculture credit disbursement target in FY2023-24 is Tk35,000 crore, which was Tk30,811 crore in FY2022-23.

At the same time, five banks have disbursed 100 percent of targeted agriculture credit. Foreign lender Habib Bank has made a record of the highest agricultural and rural loan disbursement. The bank achieved 222.8 percent disbursement during the current fiscal year under the review period.

At the same time the AB Bank disbursed 173.3 percent, Dhaka Bank 145.3 percent, State Bank of India 121.8 percent, and Bank Al Falah disbursed 105.3 percent of loans.

According to the data, in the first seven months of the current financial year, eight state-owned banks disbursed agricultural loans of Tk 7,551 crore, which is 62.77 percent of the total target. Private and foreign banks disbursed loans of Tk 13,603 crore during the same period, which is 59.22 percent of the total target.

Among the private sector banks, the Padma Bank has disbursed agriculture loans 0.38 percent, Madhumati Bank 4.93 percent, Social Islami Bank 12.77 percent, Global Islami Bank 14.55 percent, Simanto Bank 17.72 percent and South East Bank 18.10 percent.

Local Citizen Bank and foreign Woori Bank could not disburse a single penny in the first seven months of the current fiscal year.

The BB reduced the dependency of private banks on Micro Finance Institutions (MFIs) to reach farmers at low-interest rates. The central bank has made it mandatory to disburse at least 50 percent of agricultural loans through the bank's own network. It was 30 percent earlier.