The Financial Express

Industrial credit drops in fiscal year 2017

| Updated: October 27, 2017 10:23:37

Industrial credit drops in FY17

Disbursement of the industrial term credit declined by 5.16 per cent in the past fiscal year (FY17), according to the latest statistics of the central bank.

It showed that some Tk 621.54 billion was disbursed as industrial term loans in FY17 while the amount was Tk 655.36 billion in FY16.

After increasing to Tk 195.75 billion in the second quarter (October-December) of the past fiscal year, the term loans to industrial sector dropped to Tk 157.83 billion in the third quarter (January-March) of the same fiscal year. It further declined to Tk 137.51 billion in the last quarter (April-June).

As a result, total industrial term loans in the past fiscal year became lower compared to the previous fiscal year. Drop in the industrial credit reflects the lower demand for manufacturing activities in the country.

While disbursement of the industrial term loans dropped, recovery of the previously disbursed credit increased by 8 per cent in the past fiscal year.

Central bank data showed that banks and financial institutions have recovered around Tk 521 billion in the past fiscal year while the amount was Tk 482.23 billion in FY16.

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