Dhaka division tops microcredit chart

The disbursement of microloans in the microfinance sector shows the highest concentration in the Dhaka Division compared to any of the other divisions.
According to data from the Microcredit Regulatory Authority (MRA), microfinance institutions in the Dhaka division disbursed Tk 427 billion out of the total loan outstanding of Tk 1.50 trillion during the fiscal year (FY) 2022-2023. This figure represents 28.47 per cent of the overall loan outstanding in the division.
In terms of total savings amounting to Tk 620.55 billion, microfinance institutions in the Dhaka division received Tk 181.10 billion during the period.
Microfinance institutions received the largest sum of savings from Dhaka Division, constituting 29.19 per cent of the nationwide total savings. The lowest loan outstanding, at Tk 52.68 billion, was observed in Sylhet.
The loan outstanding in Mymensingh amounted to Tk 66.53 billion, in Chattogram Tk 335.11 billion, in Rajshahi Tk 213.52 billion, in Khulna Tk 175.28 billion, in Rangpur Tk 144.30 billion, and in Barishal, it amounted to Tk 78.79 billion in the last fiscal year.
The institutions accepted savings of Tk 29.49 billion in Mymensingh, Tk 129.80 billion in Chattogram, Tk 86.41 billion in Rajshahi, Tk 70.43 billion in Khulna, Tk 61.71 billion in Rangpur, Tk 22.17 billion in Sylhet and Tk 39.44 billion in Barishal, MRA data revealed.
Microfinance institutions play a vital role in providing financial services nationwide, with a focus on financial inclusion as well as contributions to health, education, higher education and disaster management.
According to the regulator's data, these institutions disbursed a total of Tk 2.49 trillion in loans in FY23 and achieved a 98 per cent loan recovery rate for the loans disbursed to their clients in FY23.
The data, covering the period up to June 2023, boast the active involvement of women in this sector, comprising 91 per cent of the loan recipients.
Mohammad Yakub Hossain, the Executive Director of the MRA, acknowledged that the concentration of microloans was predominantly centered in the Dhaka division due to more borrowers and branches.
However, he emphasised that the MRA was actively analysing data and formulating policies to redirect focus to areas with lower financial inclusion.
"We are striving to grant licences in regions where financial inclusion is comparatively lacking," Hossain stated.
The MRA was actively conducting research to bolster the microfinance sector and address the current challenges, Yakub added.
Currently, 731 MRA-certified institutions are operating about 25,000 branches, reaching out to nearly 40 million marginalised individuals nationwide.

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