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Credit flow to industrial sector in Q2 rises

Published : 22 Sep 2021 10:02 PM | Updated : 23 Sep 2021 02:53 PM

Overall credit flow to industrial sector is on rise as a total of Tk 1,07,241 crore has been disbursed in the sector in the April-June quarter of this year, up by Tk 32,984 crore or 44.42 per cent from the same period of the last year.

In the same period in 2020, the amount distributed in the industrial sector was Tk 74,257 crore, according to the latest statistics of Bangladesh Bank (BB).

"Load disbursement for the industrial sector is increasing as the trade and commerce have bounced back overcoming the shocks of Corona-19 pandemic," said a central bank official.  

A top official of a private bank said that the demand for industrial loans has increased as Covid-19 infection situation has improved. But, he said the uncertainty has not yet subsided as there is high possibility of third wave. The government must continue vaccination campaign to save the people and economy, he added.

Reviewing the statistics, it is found that the disbursement of credit in the industrial sector declined in June last year following the outbreak of corona in March, 2020. However, overall disbursement of loans to the private sector has also increased slightly and till last June, the disbursement of loans in the private sector has increased by only 7.35 percent. In the first six months of this year (January-June), a total of Tk 1,98,208 crore was disbursed in the industrial sector. At the same time last year, the amount of loan disbursement was Tk 1, 65, 920 crore. As a result, the loan disbursement has increased by Tk 32,289 crore or 19.46 per cent.

Besides, the recovery of loans has also improved during the period.

According to the updated data, the industrial loan recovery in April-June this year was Tk 82,221 crore. In April-June of 2020, Tk 64,135 crore was recovered. As a result, this year's recovery has increased by more than 28 per cent compared to the second quarter of the last year. Although the recovery of loans has increased, the amount of overdue loans has also increased and in the second quarter of this (calendar) year, the overdue loan has increased by about 15 per cent to Tk 95,773.80 crore.

Besides, in the first six months of this year (January-June), industrial loans worth Tk 1,67,017 crore have been recovered. The collection during the same period of the last year was Tk 1, 42, 325 crore. As a result, the collection has increased to Tk 24,693 crore while the outstanding debt has stood at Tk 6, 18,164 crore.

Compared to the first quarter of this year, the disbursement of term loans has also increased by 11.81 per cent in the June quarter. Term loans worth Tk 16,217 crore have been disbursed to big industries, which is up by 16.51 per cent. However, in the medium industry, disbursement of term loans has declined by 12.22 per cent to Tk 1,565 crore.

The disbursement of term loans to small scale industries decreased by 1.8 per cent to Tk 1,649 crore.