Banks in Bangladesh have disbursed 50.57% of their annual agricultural loan target in the first seven months of the current fiscal year, according to the latest Bangladesh Bank data.

Between July and January of FY2024-25, scheduled banks disbursed Tk 192.15 billion in agricultural and rural credit out of the Tk 380 billion target set by the central bank to support food production.

However, two banks—Padma Bank and foreign-owned Woori Bank—failed to disburse any loans during this period. Additionally, Madhumoti Bank, Union Bank, and HSBC disbursed less than 10% of their respective targets.

Union Bank, with a Tk 1 billion target, disbursed only Tk 48.9 million, while Madhumoti Bank distributed Tk 25 million of its Tk 330 million target. HSBC disbursed Tk 250 million, representing just 8.77% of its Tk 2.85 billion goal.

The government has mandated that banks allocate at least 2% of their total lending to agriculture. Bangladesh Bank has warned of penalties for failing to meet this requirement.

Loan disbursements to key sectors include Tk 91.01 billion for crops, Tk 46.64 billion for livestock, Tk 17.15 billion for fisheries, and smaller amounts for machinery and grain storage.

Authorities aim to maintain credit flow to the sector to support food security and rural development.