Growth of loan at the private sector has come down to depressing levels; at the end of last September, the growth came down to 10.66 per cent. In the two AL tenures, this is the lowest growth. A central bank report says that the gradual decline in loans at the private sector has had an adverse impact on production, employment and overall economic management.
Former adviser to the caretaker government, Dr. A B M Mirza Azizul Islam, says: “banks cannot give loans as per demand because they are not getting expected deposits; but many entrepreneurs are not taking risks due to infrastructural problems and high rate of interest.”
To rejuvenate the private sector, economic good governance has to be ensured, he added.
Meanwhile, entrepreneurs say that the passed through worse times in 2013 when the country experienced political unrest.
Owner of KPC Industries, Kazi Sajidur Rahman, said: “despite a high rate of interest, banks delay in handing out loans. I asked for loans from two banks but didn’t get it.”
Bank officials say that due to liquidity crisis, pressure from loan and deposit ratio, commercial banks have brought down loan distribution.
Even during the political upheaval in 2013-14, the loan growth did not come down so much.
As per information of the central bank, loan growth has fallen steadily; compared to last January the loan growth this January was 13.20 per cent.
In September, loan growth was 10.66 per cent. In the current fiscal year, the targeted loan growth is 14.8 per cent.
Till December next, the target is set at 13.2 per cent. Bangladesh bank says that at the end of March this year, the loan stability was Tk. 68100 crore and end June this came to Tk. 67 thousand crore.
Compared to March, loan stability fell by Tk. 1100 crore in June. Central bank says that growth in micro credit has also fallen; at the end of 2018-19, the micro credit rate came to 11.4 per cent which is the lowest in five years.