Private Commercial Banks (PCBs) have made the highest contributions to the country’s industrial growth by providing the lions share of loans to the sector in the first quarter of the current fiscal.

All banks and financial institutions (FIs) have disbursed a total of Tk 345.54 billion in July-September period of FY 2012-13.

The share of PCBs in industrial credit was as high as 76.23 percent while the stake of state-owned commercial banks (SoCBs), foreign commercial banks (FCBs), specialised banks and financial institutions (FIs) were 8.22 percent, 8.57 percent, 2.93 percent and 3.35 percent respectively.

The central bank data also shows a significant 38.22 percent rise in industrial credit in the first quarter of the FY13 over the same period last fiscal.

During the July-September period of FY13, banks and FIs have disbursed a total of Tk 345.54 billion loans while the loan in the same period last fiscal was Tk 249.99 billion.

Out of total loan amount, the current credit was Tk 248.33 billion and the term loan was Tk 97.20 billion, the BB data shows.

Meanwhile, the amount of outstanding industrial loans recovered by all banks and FIs was Tk 279.31 billion, out of which Tk 197.40 billion was current credit and Tk. 81.91 billion term loans.

The recovery of current credit went up by 32.55 percent to 197.40 billion in July-September period of FY13 compared to Tk 148.93 billion in the corresponding of last fiscal.

In case of outstanding term-loan, the recovery moved higher by 20.26 percent to Tk. 81.91 billion in FY13 compared to Tk 68.10 billion in the same period of FY12. Total recovery of industrial credit in July-September FY12 was Tk. 217.04 billion.

The success rate in industrial loan recovery by PCBs was Tk 75.14 percent, FCBs 11.63 percent, SoCBs 5.93 percent, FIs 4.03 percent and specialised banks 3.27 percent.

However, the central bank data shows a remarkable rise in the overdue industrial credit in the first quarter of current fiscal compared to the same period of last fiscal, signaling the risks of generating more bad loans as these amounts will be required to be classified and provisioned by banks.

In July-September 2011-12, overdue industrial credit amounted to Tk. 138.67 billion, which rose by 9.67 percent to Tk 152.09 billion.

According to the data, about 16.85 percent of the industrial term-loan became overdue while the stake of current credit was 2.64 percent.

Out of total overdue loans, the share was 49.61 percent of PCBs, 36.37 percent of SoCBs, 6.06 percent of FIs, 5.57 of specialised banks and 2.39 percent of FCBs.

News: The Daily Sun/Bangladesh/02-Dec-12