Dhaka, Bangladesh (BBN) – Bangladesh’s private sector credit growth decreased slightly in October over that of the previous month, officials said.
The growth in credit flow to private sector came down to 15.20 per cent in October 2016 on a year-on-year basis from 15.34 per cent in September last, according to the central bank latest statistics.
The private sector credit growth was 16.21 per cent in August 2016.
“The overall private sector credit volume increased in October with a decreasing trend,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.
He also hoped that the private sector credit growth will pick up in the coming months, following a rising trend in import of capital machinery and other construction materials.
“Such capital machinery and construction materials are being imported to implement different infrastructure development projects across the country,” the BB official explained.
Currently, the government is implementing nine projects under a Fast Track Project Monitoring Committee, headed by Prime Minister Sheikh Hasina, for ensuring their quick execution.
He also said consumer credits along with SME financing are also maintaining a rising trend in the recent months to meet the growing demand of the borrowers.
The total outstanding loans with the private sector rose to BDT 6,850.81 billion in October 2016 from BDT 6,801.37 in this September. It was BDT 5,946.77 billion in October 2015.
The central bank has projected that private sector credit would grow at 16.60 per cent in December 2016 and at 16.50 per cent in June 2017.
On the other hand, the country’s overall domestic credit growth increased slightly to 12.03 per cent in October 2016 from 11.89 per cent a month before, the BB data showed.
The total credit in the domestic sector rose to BDT 8105.11 billion in October from BDT 8097.13 billion in September 2016. It was BDT 7234.53 billion in October 2015.