The state-owned commercial banks and specialised development banks lagged behind other banks in financing green projects in last year, Bangladesh Bank Green Banking Report for 2012 said.
The SCBs disbursed only 2.39 per cent and the SDBs only 3.02 per cent of the total loan amounting to Tk 27,092 crore distributed by banks to the environment friendly projects in 2012, the BB report showed.
According to the BB guideline, the green finance includes both direct and indirect green finance. Banks’ direct green finance may be for renewable energy and environment friendly projects. Indirect green finance means financing the projects having effluent treatment plants or alike system.
A BB official told New Age on Thursday that the loans for installation of ETPs at industries, bio-gas plants, solar panels, bio-fertiliser plants and hybrid brick kilns were considered as green financing.
‘Many of the banks specially SCBs and SDBs think that financing the green projects will not bring any immediate benefits for the entrepreneurs and affect chance of repayment of loans. So, the banks go for more loans for projects which will generate quick profits,’ he said.
The BB data showed that the SCBs and the specialised banks disbursed Tk 650.72 crore and Tk 820.50 crore respectively in green financing in 2012.
The local commercial banks and the foreign commercial banks disbursed Tk 17,881.09 crore and Tk 7,739.83 crore respectively in the environment friendly projects in last year, the BB report showed.
Among the SCBs and the SDBs, only Rupali Bank and BASIC Bank secured position in the top 10 banks in terms of disbursing loans to the environment friendly projects in last year, another BB official said.
The BB data showed that top 10 banks contributed to a great extent having 90 per cent of the total green finance. Exim Bank topped them with more than 15 per cent. The other nine banks are Standard Chartered Bank, Rupali Bank, BASIC Bank, Islami Bank, Citibank NA, Bank Asia, Social Islami Bank, The City Bank and Eastern Bank.
Banks disbursed Tk 1,35.65 crore in loan for installation of ETP, Tk 25,910.00 crore to projects having ETPs, Tk 89.98 crore for bio-gas plants, Tk 3,63.83 crore for solar and renewable energy, and Tk 183.03 crore for hybrid hoffman kiln during 2012, the BB report showed.
The BB official said that the performance of SCBs and SDBs in giving green finance was dismal because of the banks’ greed for quick profits and mismanagement.
The BB report showed a very dismal performance of all banks in disbursing fund from Climate Risk Fund.
It showed that banks disbursed only Tk 25.88 crore under the scheme in 2012 against the target of Tk 214.53 crore.
-With New Age input