Disbursement of loans, credits and lease finance for the industrial sector posted a 53.16 per cent growth in the first nine months of the current fiscal year (FY) over the level of the corresponding period of the previous fiscal, according to the latest Bangladesh Bank (BB) data.
The BB data showed the disbursement of industrial credits by both banks and non-banking financial institutions (NBFIs) stood at Tk 1,091.14 billion between July 2012 and March 2013 against Tk 712.39 billion during the corresponding period of fiscal 2011-12.
Industrial credit disbursement by banks and NBFIs rose slightly by 1.36 per cent during the third quarter (Q3), that is, between January and March, of the current fiscal over the previous quarter.
According to central bank statistics, the disbursement of such credits in the Q3 stood at Tk 375.31 billion against Tk 370.28 billion in the previous quarter (Q2).
Meanwhile, supply shortage of power and energy and high lending rate have put a damper on new investment activities in the private sector. As a result, the demand for credit has not been increasing at the expected level, Sukamal Sinha Choudhury, general manager of the BB's SME Programme Department, told the FE. "The growth of the small and medium enterprises (SMEs) credit increased in the recent months. This has boosted credit growth to the SMEs," he added.
The level of private investment will increase further in the industrial sector in the days to come if the infrastructural support facilities are expanded and supplies of power and gas are increased, he said.
The BB data showed the amount of 'default' industrial loans increased to Tk 149.60 billion in the July-March period of FY 2012-13, up from Tk 76.44 billion in the July-March period of the previous fiscal.
The credit recovery by banks and NBFIs witnessed a rising trend in the first nine months of the current fiscal.
Source: Financial Express
