Private sector credit growth decreased to some extent in October over that of the previous month, according to the central bank's latest statistics.
The growth in credit flow to private sector came down to 15.20 per cent in October 2016 on a year-on-year basis from 15.34 per cent in September. The private sector credit growth was 16.21 per cent in August 2016, the Bangladesh Bank (BB) data showed.
Terming it a normal trend, a BB senior official told the FE that the private sector credit volume increased in October, but its growth rate decreased slightly.
The total outstanding loans with the private sector rose to Tk 6,850.81 billion in October 2016 from Tk 6,801.37 in this September. It was Tk 5,946.77 billion in October 2015.
The central banker also hoped that the private sector credit growth will pick up in the coming months, following a rising trend in import of capital machinery and other construction materials.
"Such capital machinery and construction materials are being imported to implement different infrastructure development projects across the country," the BB official explained.
Currently, the government is implementing nine projects under a Fast Track Project Monitoring Committee, headed by Prime Minister Sheikh Hasina, for ensuring their quick execution.
He also said consumer credits along with SME financing are also maintaining a rising trend in the recent months to meet the growing demand of the borrowers.
Echoing the BB's official, a senior official of a leading private commercial bank said it is a normal phenomenon.
"The private sector credit growth might have increased in November, as the local currency is maintaining a depreciating trend against the US dollar," the private banker noted.
The central bank has projected that private sector credit would grow at 16.60 per cent in December 2016 and at 16.50 per cent in June 2017.
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