The defaulted loan in the industrial sector skyrocketed by 95.96 per cent in the first nine months of the current fiscal year compared with that in the same period of the FY 2011-12 when it decreased by 7.52 per cent, according to the latest Bangladesh Bank data.
BB officials told New Age on Thursday that banks increased industrial loan disbursement by 34.29 per cent in July-March of the current fiscal year from that of the same period of the last fiscal year.
A large amount of the loans was sanctioned unlawfully and amid political pressure, they said.
A significant amount of industrial loans did not go to appropriate target in the period resulting that the defaulted loans in the industrial sector increased hugely, they said.
According to the BB data, the defaulted industrial loans stood at Tk 14,960.57 crore in the first nine months of the FY 2012-13 against Tk 7,644.97 crore in the first nine months of the FY 2011-12.
The growth in classified loan in July-March of the last fiscal year registered a negative 7.52 per cent as the figure in July-March of the FY 2010-2011 was only Tk 8,266.43 crore.
The term loan, a pivotal portion of the industrial loan, also became defaulted alarmingly in the first nine months of the FY 2012-13.
The defaulted industrial term loan increased by 111.11 per cent in July-March of the FY 2012-13, up from 3.43 per cent in the same period of the FY 2011-12.
The defaulted or classified industrial term loan increased to Tk 10,543.90 crore in the first nine months of the FY 2012-13 against Tk 4,994.62 crore during the same period of the FY 2011-12. The classified industrial term loan in the first nine month of the FY 2010-11 reached Tk 4,829.03 crore.
The state-owned banks held Tk 6,367.56 crore, or 42.56 per cent of total industrial classified loans in the first nine months of the FY 2012-13.
The private commercial banks held Tk 6,039.15 crore, or 40.36 per cent of total industrial classified loans in July-March of the FY 2012-13.
A BB official said that the classified loan increased in the SCBs and specialised banks as the boards of directors of the banks disbursed loan on political consideration.
The boards of directors of the banks usually approve big loans to the politically-linked persons which has already created Hallmark Group-Sonali Bank scam.
Majority amount of the loan relating to the Hallmark Group scam became defaulted which played a role in increased trend in the classified loan, he said.
Besides, a number of scams including Bismillah Group swindle in the private commercial banks pushed up the classified loan in the industrial sector, he said.
Another BB official said that the businesspeople were now facing difficulties to continue their production in their industries due to gas and electricity shortage resulting that their banks’ loans were becoming defaulted.
The political unrest has also put a negative situation on the industrial sector that has played a significant role in the increased trend in the defaulted loan, he said.
The overall defaulted loans in the banking sector increased by 19.41 per cent from Tk 42,725.51 crore as of December 31, 2012 to Tk 51,019.91 crore as of March 31, 2013.
The defaulted loans in the industrial sector stood at 29.32 per cent of total defaulted loans in the banking sector amounting to Tk 51,019.91 crore as of March 31, 2013.
The BB data showed that disbursement of industrial loans by banks and non-bank financial institutions grew by 34.29 per cent in July-March of the FY 2012-13, up from 4.55 per cent in the same period of the last financial year.
Banks and NBFIs disbursed Tk 1,09,114 crore in industrial loans in the first nine months of this financial year against Tk 81,253.46 crore in the nine months of the FY 2011-12. Total industrial loan disbursement in the first three quarters of the FY 2010-11 was Tk 77,720.65 crore.
-With New Age input