BB raises agri credit target by 54% to 60,000cr taka for FY27

Bangladesh Bank has raised the agricultural credit disbursement target by nearly 54 percent to 60,000 taka for the current fiscal year 2026-27.

Under the updated guidelines, all commercial banks are now required to disburse at least 4 percent of their total loan portfolio to the agriculture sector, up from the previous minimum requirement of 2.5 percent.

In the previous fiscal year, the agricultural credit disbursement target was 39,000 crore taka.

BB Deputy Governor Dr Md Habibur Rahman announced the new Agricultural and Rural Credit Policy at a press conference at the central bank headquarters on Monday.

Of the total 60,000 crore taka target for FY27, 20,495 crore taka has been allocated to state-owned commercial and specialised banks, while private and foreign banks have been tasked with disbursing the remaining 39,505 crore taka.

According to the central bank, the policy aims to boost agricultural production and contain inflation by ensuring adequate credit flow to the sector. A specialised web-based agricultural credit MIS software has also been developed to strengthen supervision and monitoring.

The Bangladesh Bank has introduced several new measures under this year's policy framework. For loans of up to 5 lakh taka in the fisheries and livestock sectors, traditional immovable property collateral is no longer required. Instead, banks can accept personal, social or group guarantees, making credit more accessible to women and marginal farmers.

Group-based financing has also been expanded to crops, fisheries and rural income-generating activities, with relaxed limits on group membership.

Credit coverage has been extended to new sub-sectors, including fish and poultry chick production in hatcheries, camel farming, blueberry cultivation, shimul root (cotton tree root), ashwagandha and organic fertiliser production using eggshells.

Genuine farmers can be identified through certificates issued by local agriculture, fisheries or livestock officers, or through Farmers’ Cards. The mandatory requirement of possessing a passbook to obtain a loan has also been abolished.

A new provision allows banks and farmers to mutually agree on insurance coverage to mitigate climate change-related risks.

The central bank expressed optimism that the policy measures would help reduce poverty, generate new employment opportunities and maintain overall macroeconomic stability in Bangladesh.