Banks’ agricultural lending and loan recoveries saw significant growth in the first seven months of FY26, according to data from Bangladesh Bank.
In July–January of FY26, all scheduled banks disbursed Tk24,359 crore, a 26.77 per cent increase from Tk19,215 crore in the same period of FY25.
During the same period, banks recovered Tk24,920 crore, reflecting a 14.43 per cent rise from Tk21,777 crore a year earlier.
The total outstanding balance stood at Tk63,040 crore in January, up by Tk6,633 crore, or 11.76 per cent, from Tk56,407 crore in the previous year.
Dr Ripon Kumar Mondal, Professor of Agricultural Economics at Sher-e-Bangla Agricultural University, highlighted that many loans are rescheduled.
He said that farmers’ access to formal credit remains low. “Farmers do not know which banks offer loans at a lower interest rate,” he told TIMES.
He further pointed out that the lack of publicity about loan facilities prevents farmers from approaching banks.
“The opportunities need to be properly communicated to the public. As access to formal credit increases, it will help to further grow the economy,” he added.
In the same period, the Palli Karma-Sahayak Foundation (PKSF) disbursed Tk5,184 crore to 289 partner organisations (POs), an 8.98 per cent increase from Tk4,757 crore a year earlier.
PKSF also recovered Tk4,391 crore, reflecting a 20.98 per cent rise from Tk3,630 crore in FY25.
Meanwhile, the Bangladesh Rural Development Board (BRDB) disbursed Tk757 crore, a 3.64 per cent decrease compared to the same period in FY25.
However, BRDB recovered Tk768 crore, marking an 8.40 per cent increase from the previous year.
Bangladesh Samabaya Bank Limited (BSBL) disbursed Tk70 lakh during July–January of FY26, compared to no disbursement in the same period of FY25. Recovery amounted to Tk1.27 crore, up 9.48 per cent from Tk1.16 crore a year earlier.
In January 2026, 11 microfinance institutions (MFIs) disbursed Tk19,337 crore for microfinance programmes supporting rural activities, marking a 9.62 per cent increase from January 2025.
Around 38 million members accessed these loans through 14,331 branches operated by the major MFIs. Grameen Bank, BRAC, and ASA together accounted for 69.69 per cent of the total microcredit disbursed in January 2026.
Recovery by these MFIs reached Tk17,288 crore in January FY26, an 8.84 per cent increase from Tk15,883 crore in the same month of FY25. Outstanding balances of the MFIs stood at Tk132,266 crore, up 12.88 per cent from the previous year.
During July–January of FY26, the share of agricultural credit for crops increased from 47 per cent to 49 per cent.
The share for livestock and poultry rose from 24 per cent to 26 per cent, while credit for fisheries dropped from 15 per cent to 13 per cent. The share for poverty alleviation remained at around 4 per cent, unchanged from the previous year.
In a parliamentary session on Monday, Cox’s Bazar-3 MP Lutfur Rahman asked whether the government plans to waive agricultural loans for farmers and if interest-free loans would be offered in the district.
In response, Finance Minister Amir Khosru Mahmud Chowdhury said the government has decided to waive both the principal and interest on loans up to Tk10,000 for farmers nationwide.
However, the minister clarified that there are no current plans to provide interest-free loans in the agricultural sector.
He added that the government plans to expand existing low-interest loan programmes to further strengthen farmers’ financial capacity.
