Dhaka, Bangladesh (BBN) - Private sector credit growth fell slightly in January over the previous month mainly due to the ongoing political turmoil, bankers said.
The private sector credit growth came down to 13.33 per cent in January 2015 on a year-on-year basis from 13.50 per cent in December last, according to the central bank statistics. It was 12.67 per cent in November 2014.
“The sector’s credit growth may fall further in the coming months if the current political turmoil continues,” a senior official of a leading private commercial bank (PCB) told BBN in Dhaka.
He also said most of the businessmen are watching the current political situation closely. “The businessmen are also following a 'go-slow' policy on fresh investments to avert any financial risks. Even some of businessmen not to receive funds against their sanctioned loans earlier," the private banker explained.
The banker also said the supply chain has been affected since January 5 following the countrywide blockade and shutdowns, enforced by the BNP-led 20-pary alliance.
The total outstanding loans of private sector stood at BDT 5,418.82 billion in January last against BDT 4,781.29 billion in the same period of the previous calendar year. It was BDT 5,434.07 billion in December 2014.
BBN/SSR/AD-12Mar15-8:40 am (BST)