Private sector credit up in February
Saturday, 17 April 2010
FE Report
Upward trend in the disbursement of credit to the private sector continued in February last, officials and bankers said.
The private sector credit was 19.52 per cent in February this year up from 19.25 per cent in January 2010, according to the central bank statistics.
"We expect that the upward trend of private sector credit flow will continue in the near future if the power and gas supply situation improves," a senior official of the Bangladesh Bank (BB) told the FE Thursday.
The BB official also said that the up trend of private sector credit would continue as the major economies are on the road to recovery from the global meltdown and also restoration of confidence of the country's business community.
"The major economies in the world have started recovering from the global recession which is reflected in the up trend in commodity prices in the international market," the official added.
He also said the credit flow to private sector increased following rise in financing small and medium enterprises (SME), agriculture and trade sectors.
The credit flow to the private sector rose to Tk 405.053 billion in February this year from Tk 343.501 billion in the same period of the previous calendar year, the BB's data showed.
"Credit flow to private sector will grow gradually as soon as better supply of power and energy to industrial units will be ensured," Immediate past Managing Director and Chief Executive Officer of the Agrani Bank Limited Syed Abu Naser Bukhtear Ahmed told the FE.
Both the BB officials and senior bankers expect that private credit flow will increase sharply after announcing the guidelines on Public Private Partnership (PPP) investment initiative.
Agriculture credit disbursements recorded a 20.98 per cent growth in the first eight months of the current fiscal following some measures including relaxation of rules and regulations by the central bank.
Eight state-owned banks and financial institutions along with local and foreign private commercial banks disbursed Tk 71.92 billion as farm loans during July-February period of the fiscal 2009-10 (FY10) against Tk 59.44 billion in the same period of the previous fiscal.
The loans have been given to eight agro-based sub-sectors like crops, irrigation equipment, livestock, agricultural products marketing, fisheries and poverty alleviation, the central bank officials noted.
Upward trend in the disbursement of credit to the private sector continued in February last, officials and bankers said.
The private sector credit was 19.52 per cent in February this year up from 19.25 per cent in January 2010, according to the central bank statistics.
"We expect that the upward trend of private sector credit flow will continue in the near future if the power and gas supply situation improves," a senior official of the Bangladesh Bank (BB) told the FE Thursday.
The BB official also said that the up trend of private sector credit would continue as the major economies are on the road to recovery from the global meltdown and also restoration of confidence of the country's business community.
"The major economies in the world have started recovering from the global recession which is reflected in the up trend in commodity prices in the international market," the official added.
He also said the credit flow to private sector increased following rise in financing small and medium enterprises (SME), agriculture and trade sectors.
The credit flow to the private sector rose to Tk 405.053 billion in February this year from Tk 343.501 billion in the same period of the previous calendar year, the BB's data showed.
"Credit flow to private sector will grow gradually as soon as better supply of power and energy to industrial units will be ensured," Immediate past Managing Director and Chief Executive Officer of the Agrani Bank Limited Syed Abu Naser Bukhtear Ahmed told the FE.
Both the BB officials and senior bankers expect that private credit flow will increase sharply after announcing the guidelines on Public Private Partnership (PPP) investment initiative.
Agriculture credit disbursements recorded a 20.98 per cent growth in the first eight months of the current fiscal following some measures including relaxation of rules and regulations by the central bank.
Eight state-owned banks and financial institutions along with local and foreign private commercial banks disbursed Tk 71.92 billion as farm loans during July-February period of the fiscal 2009-10 (FY10) against Tk 59.44 billion in the same period of the previous fiscal.
The loans have been given to eight agro-based sub-sectors like crops, irrigation equipment, livestock, agricultural products marketing, fisheries and poverty alleviation, the central bank officials noted.