IBBL to invest Tk 20b in SME sector this yr
Thursday, 10 June 2010
FE report
Leading private commercial bank, Islami Bank Bangladesh Limited (IBBL), will invest an additional Tk 20 billion in the small and medium enterprise (SME) sector during the year 2010, its Managing Director Mohammad Abdul Mannan said Tuesday.
"The move," the IBBL managing director said, "would increase the share of SME in our total investment to around 30 per cent as the bank is aiming at a rapid uplift in its investment in this labour-intensive segment."
The country's largest private bank has so far invested around Tk 55 billion in the SME sector, which is around 24 per cent of its total investment, the official informed.
"This move is in line with the central bank's increasing thrust on the SME sector," Mannan said, adding, "the aim is also to give a boost to the highly potential segment which could possibly be the engine of the country's growth."
He was speaking at the inauguration of SME Customer Service Fortnight of IBBL in the city.
"IBBL and other Islami banks have contributed significantly to the SME investment over the years," Mannan said, adding, "the contribution of Islami banks in total SME investment now stands at around 10 per cent".
Later, speaking on the occasion, former finance adviser AB Mirza Azizul Islam, who attended the event as the chief guest, said access to finance, market and technology is the most crucial requisite for successful financing of the SME sector.
"In many cases, due to absence of formal channels, SMEs are compelled to take loans through informal channels at much higher interest rates," Mirza Aziz said.
"But by increasing the access to formal banking channels, they can get loans at a much lower interest rate," he added.
"Also, increasing their access to market is important whereas the distance between the origin of a product or services and its customer base becomes a significant constraint," Mirza Aziz said.
IBBL Chairman Abu Naser Mohammad Abdus Zaher who presided over the occasion said his bank is aiming to reach a wider group of customers who still remain beyond banking services.
Speaking on the occasion, Bangladesh Bank General Manager for SMEs, Shukomol Shingha Chowdhury, said, "Islami banks could potentially play a significant role in greater financing of the small and medium enterprises.
"According to the latest Bangladesh Bank move, the loan target for the SME sector in 2010 is Tk 240 billion of which 24 per cent would be disbursed by the Islami banks," Chowdhury said.
Leading private commercial bank, Islami Bank Bangladesh Limited (IBBL), will invest an additional Tk 20 billion in the small and medium enterprise (SME) sector during the year 2010, its Managing Director Mohammad Abdul Mannan said Tuesday.
"The move," the IBBL managing director said, "would increase the share of SME in our total investment to around 30 per cent as the bank is aiming at a rapid uplift in its investment in this labour-intensive segment."
The country's largest private bank has so far invested around Tk 55 billion in the SME sector, which is around 24 per cent of its total investment, the official informed.
"This move is in line with the central bank's increasing thrust on the SME sector," Mannan said, adding, "the aim is also to give a boost to the highly potential segment which could possibly be the engine of the country's growth."
He was speaking at the inauguration of SME Customer Service Fortnight of IBBL in the city.
"IBBL and other Islami banks have contributed significantly to the SME investment over the years," Mannan said, adding, "the contribution of Islami banks in total SME investment now stands at around 10 per cent".
Later, speaking on the occasion, former finance adviser AB Mirza Azizul Islam, who attended the event as the chief guest, said access to finance, market and technology is the most crucial requisite for successful financing of the SME sector.
"In many cases, due to absence of formal channels, SMEs are compelled to take loans through informal channels at much higher interest rates," Mirza Aziz said.
"But by increasing the access to formal banking channels, they can get loans at a much lower interest rate," he added.
"Also, increasing their access to market is important whereas the distance between the origin of a product or services and its customer base becomes a significant constraint," Mirza Aziz said.
IBBL Chairman Abu Naser Mohammad Abdus Zaher who presided over the occasion said his bank is aiming to reach a wider group of customers who still remain beyond banking services.
Speaking on the occasion, Bangladesh Bank General Manager for SMEs, Shukomol Shingha Chowdhury, said, "Islami banks could potentially play a significant role in greater financing of the small and medium enterprises.
"According to the latest Bangladesh Bank move, the loan target for the SME sector in 2010 is Tk 240 billion of which 24 per cent would be disbursed by the Islami banks," Chowdhury said.