BB sets SME credit disbursement target at Tk 887.53b for this calendar year

The central bank has set the small and medium enterprise (SME) credit disbursement target at Tk 887.53 billion for this calendar year, marking nearly 20 per cent growth over that of previous year despite the political uncertainty.
The loans will be given to more than 60 SME sectors such as light engineering, handicraft, flower, fish processing, handloom, rice-mill, jamdani, Rajshahi silk, khadi, bio-gas and compost fertiliser, officials said.
"We've fixed the target on the basis of information, provided by the commercial banks and non-banking financial institutions (NBFIs), Masum Patwary, general manager of the SME and Special Programmes Department of the Bangladesh Bank (BB), told the FE Wednesday after a meeting with the senior officials of all commercial banks.
At the meeting, the central bank asked the commercial banks for taking necessary initiatives to achieve the target by the end of the current calendar year.
"We'll give same directive to the NBFIs at a meeting scheduled to be held today (Thursday)," Mr. Patwary noted.
He also said the banks and the NBFIs have already achieved 85 per cent of their annual SME loan disbursement target for 2013, fixed at Tk 741.87 billion, until September last.
"We expect that the overall SME loan disbursement target for 2013 will cross as 12 private commercial banks have already exceeded their targets," the general manager explained.
Talking to the FE, another BB official said the central bank has taken a three-tier monitoring system to ensure growth of the SME sector in the country.
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.
"We've advised the banks and the NBFIs to invest their funds on cluster basis along with an area approach method," the BB official said while replying to a query.
Besides, the BB has introduced a new monitoring system using mobile phone to ensure proper utilisation of the SME loans across the country.
"It's a very effective monitoring system to check diversification of the SME loans to other sectors," the central banker noted.
At the same meeting, the bankers have been asked to follow the relaxation on loan rescheduling policy for the SME properly.
Earlier on December 18, the central bank relaxed the loan rescheduling policy for the SME for the next six months to facilitate financing for the small and medium businesses, affected by the political unrest.