Agri credit overdue surges 88% in Sep

Overdue agricultural credit of scheduled banks rose 88 percent year-on-year to Tk 22,120 crore at the end of September 2025, according to a Bangladesh Bank (BB) report.

The central bank attributed the sharp rise mainly to state‑owned specialised banks, private commercial banks, and state‑owned commercial banks, as highlighted in its monthly report on agriculture and rural finance.

The revised loan classification criteria, effective from April 2025, also contributed to the significant increase in overdue loans.

BB said the surge signals growing concerns over credit recovery and the need for stronger oversight and risk management in the sector.

At the end of September, the outstanding balance of agricultural credit, including interest, stood at Tk 59,500 crore, reflecting an 8 percent increase from Tk 54,928 crore a year earlier.

Grameen Bank and 10 large NGOs collectively disbursed Tk 18,464 crore in microcredit in September this year, a 21 percent rise from the same month of the previous year. Recovery amounted to Tk 16,968 crore, up 16 percent year‑on‑year.

Their outstanding microcredit balance stood at Tk 123,006 crore, with overdue loans of Tk 8,383 crore, representing nearly 7 percent of the total.

The overdue amount for microfinance institutions (MFIs) reached Tk 8,383 crore at the end of September 2025, a 20 percent increase from Tk 6,997 crore in September 2024.

Bangladesh Bank said the rise was driven by erratic borrower behaviour and repayment difficulties caused by crop losses from floods and rising living costs.

PKSF's loan programme had an outstanding balance of Tk 13,692 crore at the end of September, with overdue loans of Tk 108 crore.

Bangladesh Bank said that although MFIs experienced higher overdue balances due to borrowers' hardships associated with floods and rising living costs, PKSF and major microfinance institutions demonstrated strong recovery growth and expanding outreach.