Bangladesh Bank Sets Taka 39,000 Crore Agricultural Loan Disbursement Target for FY26

Bangladesh Bank (BB) has set an agricultural and rural loan disbursement target of Taka 39,000 crore for the fiscal year 2025-26 (FY26), marking a 2.63 percent increase from the previous fiscal year’s target of Taka 38,000 crore.

“The target has been set considering the importance of adequate credit flow to the agricultural sector to achieve GDP growth and to control inflation. The target has been increased to support farmers and ensure higher agricultural output, with the ultimate aim of ensuring national food security and encouraging investment in the sector,” said BB Governor Dr Ahsan H. Mansur.

The Governor made these remarks while announcing the new agricultural and rural credit policy and programme at a press conference held at the Jahangir Alam Conference Hall at Bangladesh Bank’s headquarters in Dhaka.

Present at the event were Deputy Governors, the head of the Bangladesh Financial Intelligence Unit (BFIU), the Chief Economist, Executive Directors, and senior executives of scheduled banks.

Launch of Agri-Credit MIS Software

To enhance monitoring and policy formulation for the agricultural and rural loan programme, a web-based Agri-Credit Management Information System (MIS) software was also launched during the event.

Loan Disbursement Targets by Bank Category

Dr Mansur specified that the loan disbursement target for state-owned commercial and specialised banks has been fixed at Taka 13,880 crore. Meanwhile, private and foreign commercial banks have a target of Taka 25,120 crore for agricultural and rural credit.

Policy Alignment and Reporting Measures

“A discussion has been included regarding the relationship of the annual agricultural and rural credit policy and programme with SDG Goals 1, 2, 8, 10, 12, 13, and 15; Articles 14 and 16 of the Bangladesh Constitution; the Bangladesh Bank Order, 1972; and the Bank Company Act, 1991,” the Governor added.

Bangladesh Bank has mandated Credit Information Bureau (CIB) reporting for any amount of agricultural credit or investment via its own network. Moreover, the service charge related to CIB reporting has been waived for agricultural and rural credit up to Taka 2.50 lakh.

Expanded Sector Targets and Crop Inclusion

The central bank has raised the disbursement target for the livestock sector from 15 percent to 20 percent and introduced a 2 percent disbursement target for the irrigation and agricultural equipment sector.

To broaden the scope of agricultural and rural credit, new crops such as jackfruit, beetroot, cucumber, taro, black seed, and the cultivation of ginger, garlic, and turmeric in bags, as well as molasses production, have been added.

Flexible Credit Norms and Farmer Support Initiatives

Banks are permitted to sanction credit up to 20 percent above or below the predetermined amount fixed for agricultural credit in the credit norms, depending on location and actual demand.

Banks have also been instructed to conduct awareness programmes focused on agricultural credit disbursement and recovery for farmers.

Farmers who regularly repay their loan instalments will be rewarded as part of the policy.

Governor’s Closing Remarks

Dr Mansur emphasised, “In order to alleviate poverty, create employment, increase the income of marginalised and poor people, and establish a sustainable economy, the timely supply of sufficient funds to the agriculture and rural sectors is essential.”

He expressed hope that the policies and programmes announced will contribute effectively to macroeconomic management and sustainable development by controlling inflation, and increasing employment and income for rural populations through enhanced production and supply of the nation’s agricultural products.

Summary of Key Agricultural Loan Targets and Measures for FY26