Financial institutions are the blood of an economy and basically works as an intermediary to regulate the circulation of money as well as to ensure their profitability by loan disbursement in different sectors. The main purpose of this paper is to find out the disbursement and recovery performance of rural credit of Rupali Bank Limited (RBL) in different sectors namely agriculture and industry. To attain the objective, mean difference t-test and econometric model are analyzed. For analysis, whole population is taken into account in which one group is loan taker of business sector and other is agricultural sector. The finding of t-test shows that the recovery performance of the business sector is superior to agricultural sector or in other words the agriculture sector has more problems in loan repayment than business sector. The econometric model is used to analyze the recovery performance of the bank. The robust standard error is used to remove all peculiarities in data. From the analysis, it is found that the coefficients age and education are not statistically significant but the two variables namely business type and income level are statistically significant. Family size is close to significant which indicates that the higher income group, fewer family members and disbursement of loan in business sector are related to higher recovery performance. This study is a model based approach to find out the recovery performance in different sectors. Therefore, it can be helpful to the bankers and policy makers of banking and financial institutions to select the right borrowers for disbursing loan and get better recovery from these sectors.