Farm Credit Recovery Up by 8% in First Nine Months

Agricultural Credit Recovery Rises 8% in First Nine Months of FY25

Agricultural credit recovery rose by 8 percent in the first nine months (July–March) of the current fiscal year 2024–25 (FY25), compared to the same period of the previous fiscal year, according to the latest data from Bangladesh Bank.

During July–March of FY25, all scheduled banks recovered Tk 274.43 billion in agricultural loans, up from Tk 254.11 billion in the corresponding period of FY24. The growth was primarily driven by a 14.26 percent increase in recoveries by Private Commercial Banks (PCBs) and an 8.92 percent rise from State-Owned Specialized Banks (SOSBs). Conversely, recoveries by State-Owned Commercial Banks (SOCBs) and Foreign Commercial Banks (FCBs) declined by 1.72 percent and 52.08 percent, respectively.

In March FY25 alone, agricultural loan recovery stood at Tk 30.20 billion, marking a 14.10 percent rise from Tk 26.46 billion in February FY25, and a 9.84 percent increase compared to Tk 27.49 billion in March FY24. The highest monthly recovery so far was Tk 37.64 billion in September last year, while the lowest, Tk 25.54 billion, was recorded in July.

Over the same July–March period, banks disbursed Tk 248.61 billion in agricultural loans. Of this, state-owned banks disbursed over Tk 101.33 billion, while foreign and private commercial banks together accounted for Tk 14.73 billion.

Agricultural credit in FY25 remained largely crop-focused, with 47 percent of disbursed credit directed toward the crops sub-sector—up from 45 percent during the same period in FY24. Credit to the livestock and poultry sub-sector rose slightly to 25 percent from 24 percent, and fisheries increased to 15 percent from 14 percent. In contrast, allocations to poverty alleviation and other sectors dropped to 4 percent and 9 percent, respectively, from 6 percent and 11 percent in the previous fiscal year.

These trends reflect a strategic shift toward more productive sectors, with a particular emphasis on crops and fisheries to strengthen food security. Meanwhile, support for poverty alleviation and other non-core areas has seen a relative decline.

The central bank noted that it continues to support Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB) through a short-term agricultural refinance facility backed by government guarantees to foster agricultural development.

For FY25, the overall agricultural credit disbursement target for all scheduled banks has been set at Tk 380.00 billion—an 8.57 percent increase from the Tk 350.00 billion target set in FY24. This includes targets of Tk 33.15 billion for SOCBs, Tk 93.00 billion for SOSBs, Tk 241.21 billion for PCBs, and Tk 12.64 billion for FCBs.