The overall small and medium enterprise (SME) credit disbursement grew by 22.32 per cent last year for close monitoring and supervision by the central bank.
All banks and non-banking financial institutions (NBFIs) disbursed Tk 853.23 billion to 744228 SME entrepreneurs across the country in 2013, which was 116 per cent higher than the target of Tk 741.87 billion. A total of Tk 697.53 billion SME loan was disbursed in 2012.
The loans were given to more than 130 SME sub sectors such as light engineering, handicraft, flower, fish processing, handloom, rice mills, jamdani, Rajshahi silk, khadi, bio-gas and compost fertiliser.
However, credit growth in the manufacturing sector under the SME programme decreased slightly in the last calendar year due mainly to the political uncertainty.
The credit growth in manufacturing sector came down to 28.15 per cent in 2013 from 31.39 per cent a year ago, according to the central bank statistics.
Service sector credit growth rose to 5.40 per cent in 2013 from 5.21 per cent in 2012 while credit growth in the trading sector reached 66.45 per cent from 63.40 per cent.
"We've crossed our SME loan disbursement target in the last calendar year despite political turmoil," Masum Patwary, general manager of the SME and Special Programmes Department of the Bangladesh Bank (BB), told the FE Thursday.
He also said the central bank has taken different measures including introducing a new monitoring system using mobile phone to ensure proper utilisation of the SME loans across the country.
Besides, the BB has introduced a three-tier monitoring system to ensure growth of the SME sector in the country, the central banker added.
Under the monitoring system, the central bank headquarters, its ten branch offices across the country and head offices of all commercial banks will review the implementation of SME credit programmes regularly.
The central bank has already set the SME credit disbursement target at Tk 887.53 billion for the current calendar year, marking nearly 20 per cent growth over that of the previous year.
"We're going to introduce online reporting system shortly for the banks and NBFIs as part of strengthening our ongoing SME development programme," another BB official said while replying to a query. He also said the BB will conduct inspection at the field level, if necessary.
