Update March 4, 2015

Dhaka 5-27 pm, 25-February, 2021

SME financing hits new record

Sumel Sarker


Small and Medium Enterprises (SMEs)

04 March 2015, Nirapad News: The Commercial Banks and financial institutions (FIs) set a new record in lending to Small and Medium Enterprises (SMEs) disbursing Taka 1 lakh to 910 crore in a single year.

The impressive figure for 2014 represents a phenomenal increase in lending from the full spectrum of finance providers including state-owned banks, private banks, foreign banks and non-banking financial institutions.

Of the total amount disbursed up to December 30 last year, banking sector laid out Taka 98 thousand 32 crore and 95 lakh when the FIs shared the rest Taka 2 thousand 877 crore and 20 lakh. The annual growth in SME lending was 13.34 percent.

“The Central Bank has expanded SME financing to create new entrepreneurs and employment opportunities in addition to empowering women”, Bangladesh Bank (BB) Governor said earlier when he was talking about the objective of accelerating SME financing. Last year banks provided loans to 5 lakh 41 thousand 41 hundred and 656 entrepreneurs, of which 42 thousand 730 were women, according to BB. A BB document also shows that the SME loan program so far created around 1.5 million new employment opportunities across the country.

“The banks and FIs increased their lending program for SME sector as advised and encouraged by the central bank”, said general manager of SME and Special Programmes Department Swapan Kumar Roy. Roy said the quality of SME financing also improved due to constant and effective monitoring of the central bank. He said the loan recovery also increased phenomenally last year, which stood 64.95 percent higher at Taka 69 thousand 172 crore at the end of December.

BB latest data also showed that the major share of the total disbursed SME loan goes to business, with receiving Taka 62 thousand 767 crore and 18 lakh or 62.20 percent of the total lending to SME. Industrial sector got the second highest amount of loan of Taka 30 thousand 246 crore and 20 lakh, which was nearly 30.0 percent of the total disbursement.

Visitor's Comment: ( The authorities are in no condition responsible for any comments of the reader)