Government borrowing from scheduled banks has already crossed Tk195bn this month, which is likely to reach Tk200bn before the end of the current fiscal year that ends on June 30.
At the start of the 2012-13 fiscal, the borrowing showed a down trend. But since April, it has been increasing alarmingly.
According to the latest Bangladesh Bank data, as of May 15, total government borrowing from scheduled banks stood at about Tk196bn.
The government repaid the central bank about Tk80bn during the period, pushing down its overall bank borrowing to Tk116bn, which was Tk151bn in the same period last year.
This fiscal year, the overall government borrowing from the banking source peaked at about Tk126bn on May 9, which was Tk155bn in the same period last year.
The overall borrowing then dropped slightly, as the government repaid part of the credit. On May 13, borrowing stood at Tk120bn as Tk71.5bn was repaid, while on May 14, loans amounted to Tk122bn with Tk69bn repaid.
Although the government borrowing from scheduled banks has increased, it has not created a crisis in the money market, officials said.
According to BB officials, the banking sector has been warned to be careful about loan disbursement in the wake of the Hall-Mark scam. Besides, industrial investors are also reluctant to take out loans as they remain wary of political unrest.
As a result, there is enough liquidity flow in the money market, and bankers are interested to invest in government securities and bonds for security.
The officials said, though the government borrowing still remains below Tk200bn, it might cross the budget target of Tk230bn in loans from the banking system before the end of FY 2012-13.
The sources also predicted that government borrowing from the banking sector may rise by 10% next fiscal year, compared to the current year.
Meanwhile, the BB data showed that scheduled banks invested Tk216bn in government securities, about Tk110bn in treasury bills and Tk106bn in treasury bonds