Bangladesh Bank has instructed all scheduled banks to set their rawhide loan disbursement targets this year at no less than Tk232 crore—the level fixed for Eid-ul-Adha 2025—and to ensure timely financing for leather traders ahead of the festival.
The directive follows a significant shortfall last year, when banks disbursed only Tk125 crore against the Tk232 crore target set by the central bank for rawhide purchases during Eid-ul-Adha 2025.
In a circular issued on Tuesday, the central bank advised banks to ensure timely sanction and disbursement of working capital loans for leather traders this year.
The central bank described the leather industry as an export-oriented sector based on domestic raw materials, highlighting its contribution to employment generation, economic growth and foreign exchange earnings. It noted that around half of the industry’s annual raw material supply comes from animals sacrificed during Eid-ul-Adha.
To support the collection, preservation and marketing of raw hides, banks have been instructed to provide adequate financing to traders based on established banker-customer relationships. They have also been asked to ensure fair distribution of credit, particularly among grassroots-level traders involved in hide collection.
As part of a policy relaxation, the central bank has allowed traders seeking fresh loans to be exempt from repaying compromised amounts against rescheduled loans until 30 June.
All banks are required to submit details of their loan targets and actual disbursement to the Director of Banking Regulation and Policy Department-1 by 31 July.
The report must include the number of traders or institutions receiving loans, reasons for any shortfall in disbursement, and the contact details of a designated officer. It must be signed by the managing director or chief executive officer of each bank.
The directive was issued to managing directors and CEOs of all scheduled banks in Bangladesh.
