Four SCBs start disbursing Tk 3.65b loan to buy raw hide

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Siddique Islam Four state-owned commercial banks (SCBs) have started disbursement of around Tk 3.65 billion as loans among the clients to procure raw hide of sacrificial animals during Eid-ul-Azha. "Only those regular parties who have already repaid their outstanding dues, have been qualified for fresh loans in line with the existing guidelines, issued by the SCBs earlier," a senior official of a leading SCB told the FE Tuesday. As per the guidelines, those who failed to repay their previous loans would not be entitled to fresh credit to purchase raw hide, he added. The Sonali Bank Limited has already approved Tk 650 million loan which is almost the same amount of the previous year to three parties for purchasing hide and skin during the Eid. "We've asked our branches concerned to disburse the loans to the clients," a senior official of the Sonali Bank told the FE Tuesday, adding that the Sonali Bank provided Tk 600 million to the same parties for the same purpose in 2010. The Janata Bank Limited has decided to disburse Tk 1.50 billion among 26 parties this year to facilitate the country's leather sector. Around 90 per cent of loans have been approved by the board of directors and rest of the loan is expected to get approval at Wednesday's board meeting, a Janata Bank official said. "We're providing loans only to the regular parties," he said, adding that the bank has already asked its branches for taking necessary measures in this regard. The Agrani Bank Limited has decided to provide Tk 1.0 billion this year to seven parties for purchasing raw hide as against Tk 920 million of the previous year. "We've submitted the loan proposals to our board of directors for approval," a senior official of the Agrani Bank told the FE without elaborating. The Rupali Bank Limited has already decided to provide Tk 500 million to four clients to buy raw hide this season. "We're now working to provide the loans to our clients for purchasing raw hide," a senior official of the Rupali Bank said, adding that the bank had disbursed Tk 250 million to two clients last year. "We expect that the board of directors will give approval to sanction the loans to our clients," the official noted.