• Thursday, Jun 24, 2021
  • Last Update : 08:54 pm

Private sector credit growth continues to fall

  • Published at 07:05 pm June 10th, 2021
budget taka machine count
Bigstock

In April, private sector credit growth stood at 8.29%, down from 8.79% a month ago

Private sector credit growth continues to dip as the country’s economy faces a fresh blow from the second wave of the global Covid-19 pandemic.

In April, private sector credit growth stood at 8.29%, down from 8.79% a month ago, as per the latest data from the Bangladesh Bank.

The private credit growth in April slightly impacted owing to the strict restriction on movement to tackle the second wave of the pandemic, said Selim RF Hussain, CEO and managing director of the BRAC bank.

He also said that most of the clients in the banking sector are large industries, who have not invested in new projects amid the ongoing pandemic.

"However, the credit growth rose in our bank that month as we are a SME-focused lender," said Hussain, adding that the recovery rate from borrowers is also good amid the ongoing pandemic.


Also Read - Private sector credit growth dips in March


The Brac Bank managing director hoped that the economy and business will pick up speed within the next six month owing to the proposed pro-manufacturing budget for the next fiscal year.

The private credit growth in February started to rise but it fell again from March of this year as the second wave of the Covid-19 pandemic further affected the country's businesses and economy.

As coronavirus cases continued to rise alarmingly since mid-March, the government imposed a nationwide lockdown for a week from April 5 to contain the surge. Later, a stricter lockdown was declared from April 14 to 21 which were later extended till June 16.

The credit growth has been hovering around the 8% mark for a few months as businesses remain apprehensive about making fresh investments amid the pandemic.

The April figure is 6.51 percentage points lower than the Bangladesh Bank’s target for this fiscal year.

Private sector credit growth started to increase from February centering Eid-ul-Fitr but it fell again owing to the ongoing stagnant situation of business and economy,” said Emranul Huq, managing director of Dhaka Bank.

Between February and June last year, private sector credit growth consistently dropped when the global coronavirus pandemic was at its most ominous form.

From 9.2% in January, it came down to 8.6% in June last year as the lenders refrained from disbursing credit during the countrywide shutdown from March 26 to May 30.

51
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail