Industrial credit records significant rise in Q1
Saturday, 11 December 2010
Industrial credit disbursement recorded a significant rise by over 38 per cent in the first quarter (Q1) of this fiscal compared to the corresponding period of the last fiscal, indicating an upward trend in investments.
The disbursement of industrial term loans stood at Tk 74.7351 billion during the July-September of the fiscal 2010-11 (FY11). A total of Tk 54.0323 billion was disbursed during the corresponding period of last fiscal, according to the central bank statistics.
"It's helping to the growth of overall industrial sectors," General Manager of the SME and Special Programmes Department of Bangladesh Bank (BB) Sukamal Sinha Choudhury told the FE Wednesday.
The general index of industrial production (medium and large scale manufacturing) stood higher at 441.95 during FY10, recording an increase of 6.91 per cent over FY 09.
The BB general manager also said the central bank is advising the commercial banks continuously for strengthening credit to the SME as well as productive sectors to achieve desired economic growth.
This includes fresh credit, rescheduling of term loans and fund release for balancing, modernisation, rehabilitation and expansion (BMRE) of industrial units, the central bank officials added. "The upward trend of the industrial term loan disbursement will continue in the next quarters to meet the growing demand of the businessmen and entrepreneurs," another BB official said.
Import of capital machinery and industrial raw materials increased during the period against the corresponding period of the last fiscal following the higher disbursement of industrial term loans, the official added.
Industrial raw material import scaled up by 41.85 per cent to $2.703 billion during the period under review from $1.905 billion of the corresponding period of the pervious fiscal.
Import of capital machinery ---industrial equipment used for production --- was up by 36.87 per cent to $462.05 million, reflecting a rising level of confidence among the entrepreneurs about the country's future industrial prospects, the central bank officials noted.
"We expect that the increased demand for term loans, particularly in power sector, will continue in the near future to meet the growing demand for electricity across the country," a senior official of a commercial bank told the FE.
The energy and power, telecommunications, pharmaceuticals and textile sectors have received the lion's share of such loans, he said, adding that the major shares of loans were disbursed through syndications among the commercial banks and non-banking financial institutions during the period.
The recovery of term loans marked rise by 54.31 per cent during the period under review as the banks and non-banking financial institutions (NBFIs) intensified their recovery drive in line with the central bank directives, the BB officials said.
During the period, the industrial credit recovery stood at Tk 59.1387 billion compared to Tk 38.3235 billion of the corresponding period of the previous fiscal, the BB data showed.
The disbursement of industrial term loans stood at Tk 74.7351 billion during the July-September of the fiscal 2010-11 (FY11). A total of Tk 54.0323 billion was disbursed during the corresponding period of last fiscal, according to the central bank statistics.
"It's helping to the growth of overall industrial sectors," General Manager of the SME and Special Programmes Department of Bangladesh Bank (BB) Sukamal Sinha Choudhury told the FE Wednesday.
The general index of industrial production (medium and large scale manufacturing) stood higher at 441.95 during FY10, recording an increase of 6.91 per cent over FY 09.
The BB general manager also said the central bank is advising the commercial banks continuously for strengthening credit to the SME as well as productive sectors to achieve desired economic growth.
This includes fresh credit, rescheduling of term loans and fund release for balancing, modernisation, rehabilitation and expansion (BMRE) of industrial units, the central bank officials added. "The upward trend of the industrial term loan disbursement will continue in the next quarters to meet the growing demand of the businessmen and entrepreneurs," another BB official said.
Import of capital machinery and industrial raw materials increased during the period against the corresponding period of the last fiscal following the higher disbursement of industrial term loans, the official added.
Industrial raw material import scaled up by 41.85 per cent to $2.703 billion during the period under review from $1.905 billion of the corresponding period of the pervious fiscal.
Import of capital machinery ---industrial equipment used for production --- was up by 36.87 per cent to $462.05 million, reflecting a rising level of confidence among the entrepreneurs about the country's future industrial prospects, the central bank officials noted.
"We expect that the increased demand for term loans, particularly in power sector, will continue in the near future to meet the growing demand for electricity across the country," a senior official of a commercial bank told the FE.
The energy and power, telecommunications, pharmaceuticals and textile sectors have received the lion's share of such loans, he said, adding that the major shares of loans were disbursed through syndications among the commercial banks and non-banking financial institutions during the period.
The recovery of term loans marked rise by 54.31 per cent during the period under review as the banks and non-banking financial institutions (NBFIs) intensified their recovery drive in line with the central bank directives, the BB officials said.
During the period, the industrial credit recovery stood at Tk 59.1387 billion compared to Tk 38.3235 billion of the corresponding period of the previous fiscal, the BB data showed.