The growth in SME loan disbursement in the manufacturing sector declined in the first half of the current financial year to 28.36 per cent from 32.43 per cent in the same period of 2012 because of ongoing political tensions, said Bangladesh Bank officials.
BB data released on Sunday showed that banks and non-bank financial institutions continued to invest SME loan heavily in the trade sector although the central bank discouraged them to invest in the unproductive sector.
The disbursement growth in the trade sector rose to 66.36 per cent in January-June (H1) from 62.48 per cent during the same period of last year.
BB data showed that banks and NBFIs disbursed Tk 41,848 crore in SME loans in H1, which is 56.41 per cent of the Tk 74,186 crore target for 2013.
The trade sector got Tk 27,769 crore or 66.36 per cent of the total disbursed amount in H1 while manufacturing sector received only Tk 11,869 crore, or 28.36 per cent of disbursed amount during the period.
An official of BB told New Age that SME loan disbursement in manufacturing sector was slow because of the slowing investment in the country due to the ongoing political tensions.
‘New entrepreneurs are now hesitant to go for setting up factories and plants because of the political tension ahead of the general elections. That is why more funds are being diverted to trade sector,’ he said.
In 2012, the banks and NBIs disbursed Tk 32,255 crore in SME loans in H1, which was 54.66 crore of the total target for the year.
The trade sector received Tk 20,153 crore, or 62.48 per cent of the total disbursed loans in H1 of 2012 while the manufacturing sector got Tk 10,463 crore, or 32.43 per cent.
The BB general manager Sukumal Sinha Chowdhury told New Age on Sunday that the total disbursement of SME loans increased y 16.25 per cent in January-June.
‘The central bank is trying so that the manufacturing sector gets more SME loans. We are encouraging banks to increase their loan disbursement in the productive sectors,’ he said.
-With New Age input
