Scheduled banks in Bangladesh disbursed Tk 2,658.31 crore in farm loans in July, the first month of the 2026-27 fiscal year. That is more than 23% above the Tk 2,154.03 crore of July last year but over 44% below June's Tk 4,757.55 crore, according to Bangladesh Bank's monthly Agricultural and Rural Finance report for July, as reported by Sarabangla.
This year's farm credit target is Tk 60,000 crore, 53.85% higher than last year's Tk 39,000 crore; last year banks beat the target, lending Tk 42,834.16 crore. Private commercial banks are expected to lend Tk 36,930 crore of the target, state-owned specialised banks Tk 13,554 crore, state-owned commercial banks Tk 6,941 crore and foreign banks Tk 2,575 crore.
Of July's lending, 40.47% went to crops, 34.90% to livestock and poultry, 14.46% to fisheries, 4.59% to poverty alleviation and 5.58% to other sectors. The crop share rose 1.98 percentage points from a year earlier while fisheries fell 1.41 points. The report links the rise in crop lending to aman rice and other seasonal crops and preparations for early winter crops.
Recoveries in July were Tk 3,520.96 crore, up 19.21% on a year earlier but 41.46% below June's Tk 6,014 crore. Outstanding farm loans, including interest, stood at Tk 62,866.97 crore at the end of July, up 5.71% in a year. Overdue farm loans fell 6.04% to Tk 22,367.73 crore, though the report notes the effect of changes in loan classification.
The Bangladesh Rural Development Board (BRDB) lent Tk 115.12 crore in July, 21.10% more than a year earlier, against an annual target of Tk 1,506.65 crore. Bangladesh Samabaya Bank, with a Tk 25 crore target, lent nothing in July.
Photo: the Bangladesh Bank building at Motijheel. Photo: Abu Nayeem / Wikimedia Commons (CC BY 3.0)
Source: Sarabangla
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