Farm loan release set to reach target in FY’ 14

Farm credit disbursement target is expected to cross by the end of the current fiscal year (FY) as the central bank has beefed up efforts to make sure farmers get increased.

The expectation came after achieving nearly 97 per cent of the annual agriculture loan disbursement target of Tk 145.95 billion by the banks in 11 months to June of the outgoing fiscal year, officials said.

"We expect the agriculture loan disbursement target to be exceeded by the end of the outgoing financial year," a senior official of the Bangladesh Bank (BB) told the FE Sunday.

All banks disbursed Tk 141.21 billion in the July-May period of FY 14, compared to Tk 129.95 billion in the corresponding period of the previous fiscal, according to the central bank statistics.

Of Tk 141.21 billion, six state-owned banks disbursed Tk 87.15 billion, and the remaining Tk 54.06 billion was disbursed by the private commercial and foreign banks.

The central banker also said the farm loan worth around Tk 10 billion will be disbursed in the month of June, the last month of the outgoing year.

"Some banks will expedite their farm loan disbursement drive this month to achieve annual target," the BB official said.

He also said the central bank is now working out the new agriculture loan policy for the next fiscal year.

The recovery of farm loans rose to Tk 148.51 billion in the first 11 months of FY 14, from Tk 125.57 billion in the corresponding period of the previous fiscal, the BB data showed.