nor Dr Atiur Rahman issued the directives Monday after reviewing the status of industrial credit disbursement at a meeting with the managing directors of banks at the central bank headquarters in the capital. A recent review by the central bank found a sharp of 7.73 percent fall in industrial credit during the January-March period from the same period last year. “For achieving the growth target in industrial outputs, which ultimately leads to higher GDP growth, higher amount of credit to the industrial sector is needed; and it will not be possible unless the interest rate is rationalised,” a senior official of the central bank said Wednesday. Central bank data show that disbursement of industrial term loans during the January-March periods plunged by 7.73 percent to Tk 9283.50 crore, which was Tk 10061.24 crore during the same periods last year. Meanwhile, the amount of outstanding industrial term loans stood at Tk 95691.76 crore at the end of March 2014. Business leaders have been demanding for rationalising the interest rate on term loans to encourage fresh investments to boost industrial growth. For last couple of years, banks are charging higher interest rates, between 15-17 percent and service charge, on industrial term loans showing a rise in the cost of funds though huge liquidity remains idle in banks. According to BB data released in July, total liquid assets of the scheduled banks stood at Tk 211025.87 crore at end April 2014, which was Tk 174171.33 crore at the end of June 2013. As per the regulatory obligations, the required amount of liquidity at a bank is Tk 69860.76 crore. BB data show that disbursement of industrial term loans was lower despite a significant rise in recovery of term loans by 13.56 percent to Tk 9810.05 crore during the January-March period this year against Tk 8638.41 crore in the corresponding quarter last year. The government has targeted a 7.3 percent growth in GDP this fiscal by opening the scopes of some fresh benefits to promote industrial investments. The government has endorsed that industrial expansion is needed to accommodate unemployed people to raise income and domestic productions. The central bank, quoting Bangladesh Bureau of Statistics (BBS) data, says the general index of industrial production (medium, large scale manufacturing) has increased only by 9.14 percent, lifting the index to 205.45 during July-December period last year compared to the index of 188.24 during the same period last year. The BBS conducted the survey on production of apparel items, textile, food products, pharmaceuticals and medicinal chemical, non-metalic mineral products, leather and related products, chemicals and chemical products, basic metals, tobacco products, fabricated metal products except machinery, reproduction of recorded media, rubber and plastic products ,coke and refined petroleum products, furniture, electrical equipment, other transport equipment, beverages, wood and products of wood and cork, paper and paper products, machinery and related equipments, computer, electronic and optical products and motor vehicles, trailers and semi trailers.
Thursday, July 24, 2014
Industrial term loans drop 7.73pc in Jan-Mar:Daily Sun
nor Dr Atiur Rahman issued the directives Monday after reviewing the status of industrial credit disbursement at a meeting with the managing directors of banks at the central bank headquarters in the capital. A recent review by the central bank found a sharp of 7.73 percent fall in industrial credit during the January-March period from the same period last year. “For achieving the growth target in industrial outputs, which ultimately leads to higher GDP growth, higher amount of credit to the industrial sector is needed; and it will not be possible unless the interest rate is rationalised,” a senior official of the central bank said Wednesday. Central bank data show that disbursement of industrial term loans during the January-March periods plunged by 7.73 percent to Tk 9283.50 crore, which was Tk 10061.24 crore during the same periods last year. Meanwhile, the amount of outstanding industrial term loans stood at Tk 95691.76 crore at the end of March 2014. Business leaders have been demanding for rationalising the interest rate on term loans to encourage fresh investments to boost industrial growth. For last couple of years, banks are charging higher interest rates, between 15-17 percent and service charge, on industrial term loans showing a rise in the cost of funds though huge liquidity remains idle in banks. According to BB data released in July, total liquid assets of the scheduled banks stood at Tk 211025.87 crore at end April 2014, which was Tk 174171.33 crore at the end of June 2013. As per the regulatory obligations, the required amount of liquidity at a bank is Tk 69860.76 crore. BB data show that disbursement of industrial term loans was lower despite a significant rise in recovery of term loans by 13.56 percent to Tk 9810.05 crore during the January-March period this year against Tk 8638.41 crore in the corresponding quarter last year. The government has targeted a 7.3 percent growth in GDP this fiscal by opening the scopes of some fresh benefits to promote industrial investments. The government has endorsed that industrial expansion is needed to accommodate unemployed people to raise income and domestic productions. The central bank, quoting Bangladesh Bureau of Statistics (BBS) data, says the general index of industrial production (medium, large scale manufacturing) has increased only by 9.14 percent, lifting the index to 205.45 during July-December period last year compared to the index of 188.24 during the same period last year. The BBS conducted the survey on production of apparel items, textile, food products, pharmaceuticals and medicinal chemical, non-metalic mineral products, leather and related products, chemicals and chemical products, basic metals, tobacco products, fabricated metal products except machinery, reproduction of recorded media, rubber and plastic products ,coke and refined petroleum products, furniture, electrical equipment, other transport equipment, beverages, wood and products of wood and cork, paper and paper products, machinery and related equipments, computer, electronic and optical products and motor vehicles, trailers and semi trailers.
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