Dhaka, Bangladesh (BBN)- Country’s four state-owned commercial banks (SoCBs) are providing around BDT 6.10 billion as loans among tanners to help them procure raw hides of sacrificial animals during the Eid-ul-Azha.
According to the SoCBs’ existing guidelines, only the parties, who have repaid their previous dues, are qualified for getting fresh loans to purchase raw hides.
Those, who failed to repay their previous loans, are not entitled to receive fresh credits for the purpose, the SoCB officials added.
Among the banks, Sonali Bank Limited is set to provide around BDT 1.75 billion to three large clients for purchasing raw hides during the Eid.
“We’ve already disbursed BDT 1.22 billion in this connection,” a senior official of the Sonali Bank told BBN in Dhaka.
The SoCB disbursed BDT 1.22 billion to the same parties in 2014, he added.
Janata Bank Limited has taken preparation to provided around 2.30 billion as loans among 23 parties this year for procuring raw hides. It was given BDT 2.50 billion to the same parties in 2014.
Agarni Bank Limited provided around BDT 1.35 billion as loans this year to three parties against BDT 1.0 billion in the last year.
Rupali Bank Limited is set to disburse around BDT 800 million to four clients.
The SoCB provided around BDT 840 million to the same parties last year.
Apart from the state banks, a few private ones including National Bank Limited and the City Bank Limited will give small amounts of loans to tanneries this year.
Currently, BDT 5.0 billion remains as classified loans in the leather sector, most of which were granted in the 1990s.
As a result, the private banks do not show much interest in giving loans to the tannery sector, according to the bankers.
BBN/SSR/AD