Central Bank Probes Agricultural Loans Under 10,000 BDT Threshold

In a move that has blindsided the Governor of the Bangladesh Bank, a direct mandate has been issued to commercial banks to provide granular data on all agricultural and rural loans amounting to 10,000 BDT (approximately £62) or less. The directive, issued via email after office hours last Thursday, has bypassed standard protocols, raising eyebrows across the financial sector and sparking concerns over a potential populist loan waiver.

An Irregular Directive

The instruction, disseminated by the Agricultural Credit Department (ACD), cited an “urgent direction” from a member of the central bank’s board of directors. The data requested includes the total principal, accrued interest or profit, and the total outstanding balance as of 31 December 2025.

Surprisingly, Governor Ahsan H. Mansur admitted to being unaware of the initiative. “I am not aware whether banks were asked for such data; I will look into the matter,” he told reporters, highlighting a significant lapse in the central bank’s internal communication and hierarchical chain of command.

The Influence of Rashed Al Mahmud Titumir

While the official spokesperson, Arief Hossain Khan, confirmed the request, senior officials within the ACD—speaking on condition of anonymity—identified Rashed Al Mahmud Titumir as the board member behind the order. Professor Titumir, a faculty member at Dhaka University and chairperson of the research firm Unnayan Onneshan, has yet to provide an official comment on why the data was sought outside of a formal board resolution.

Banking Sector Concerns

Managing Directors (MDs) of several commercial banks have voiced their unease, noting that the request did not follow the standard “note-and-approval” procedure involving the Deputy Governor or the Governor.

An MD of a state-owned bank highlighted the sheer scale of the exposure, noting that their institution alone has over 30,000 such borrowers with nearly 500 million BDT (£3.1m) outstanding. “If a political decision is imposed to waive these loans, it will be extremely challenging. These are depositors’ funds; they cannot be written off arbitrarily,” he warned.

Political Undertones

The timing of the request has led to accusations of political bias. Critics argue that the central bank is being used to facilitate a populist agenda following the political shifts of 5 August. Some senior bankers fear that this data collection is a precursor to a blanket loan waiver—a move that could undermine credit discipline among marginal farmers and strain the banking system’s already fragile liquidity.