The private sector credit growth in the country decreased to 15.34 per cent in September year-on-year compared with that of 16.21 per cent in August as the import payment dropped significantly in the month (September), said Bangladesh Bank officials.
The growth had also decreased in July, the first month of this fiscal year, after maintaining a 10-month upward trend, but it rebounded in August, a BB official told New Age on Sunday.
He said that the import payment decreased in September as the financial settlement in the banking sector was lower in the month due to Eid-ul-Azha holidays.
The private sector credit growth had posted a four-year high at 16.56 per cent in the fiscal year of 2015-16.
The central bank has set the private sector credit growth target at 16.60 per cent for the July-December period of FY17.
Credit flow to the private sector stood at Tk 6,80,137 crore in September 2016 against Tk 5,89,685.60 crore in the same month of 2015. It was Tk 6,71,924.60 crore in August 2016 against Tk 5,78,176.90 crore in August 2015.
The BB official said that the decreased private sector credit growth in September was a temporary phenomenon.
The BB data showed that the settlement of letters of credit, or actual import payment, registered a negative growth of 6.68 per cent in September year-on-year.
The import payment stood at $3.19 billion in September of this year compared with that of $2.98 billion in the same month of 2015.
The official said that the credit growth might increase in the coming months as a number of banks had recently gone for aggressive banking by disbursing consumer loans at low rates of interest to ensure profitability.
Outstanding amount of banks’ consumer loans almost doubled in two years, surpassing Tk 50,000 crore as of March 31, 2016, the BB data showed.
The outstanding consumer loan figure increased to Tk 50,508 crore as of March 31, 2016 from Tk 46,008 crore as of March 31, 2015. The outstanding amount of consumer loans was Tk 27,512 crore as of March 31, 2014.
Besides, of late the businesspeople have started borrowing from the banks to expand their enterprises after a prolonged lull, the BB official said.
Political unrest in the country has recently eased that encouraged the businesspeople to take loans from the banks to expand their enterprises, he said.
In the first quarter of FY17, disbursement of farm loans posted a 7.64-per cent growth compared with that in the same period of FY16.
Banks disbursed Tk 3,443.85 crore in farm loans in the July-September period of FY17 against Tk 3,199.23 crore distributed in the same period of FY16, the BB data showed.
The BB data showed that the year-on-year credit growth in the overall domestic sector also decreased to 11.89 per cent in September from 12.94 per cent in August.
The total credit in the domestic sector stood at Tk 8,09,712.80 crore as of September this year against Tk 7,23,642.20 crore as of September last year. It was Tk 8,01,358.50 crore as of August this year against Tk 7,09,551.70 crore as of August last year.
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