Private sector entrepreneurs have started to become bank oriented. There is a demand for banking sector loans, thus banks have distributed a record amount of credit for the last three months. At the same time, the target set by the Bangladesh Bank exceeds. The latest report of the central bank has shown this information.
By December this year, the Bangladesh Bank had fixed 16.2% growth target in loan for the private sector. But commercial banks have delivered the growth 5 months before of the estimated time. According to the Bangladesh Bank, in the second month of the current fiscal year (August), the growth of private sector loans was 17.84%.
In this context, Zayed Bakht, former Director General of Bangladesh Institute of Development Studies (BIDS), told the Bangla Tribune, 'The biggest bridge in Bangladesh 'Padma Bridge Project' has given confidence to the investors. The evidence of which is seen through the loan distribution of the banks.’ He said, ‘Now there has been a change of situation in investment sector in the country. Political stability has been prevailing in the country for recent years. Moreover, interest rates of the banks have decreased too. As a result, local entrepreneurs are showing tremendous growth in investment.’
In the first five months of the current fiscal year (July), the growth in the private sector loans is 16.94%, as it noted the highest growth of private sector credit in the last five years. Last year, the loan growth was 15.97%.
In this regard, Agrani Bank Managing Director Mohammad Shams-ul-Islam told the Bangla Tribune, ‘The investment environment is stable in the country, so the entrepreneurs have become bank oriented. As well as the banks also have investment funds. The interest rates in bank credit are much lower now. Apart from this, the government is establishing various infrastructures for investment. Again, the problem of gas, electricity, is also low now.’ He noted, ‘Recently the rate of opening of LC has increased and it shows that the loan is coming in the investment.’