Dhaka, Bangladesh (BBN)- Private sector credit growth increased slightly in September as the overall import payment increased significantly in the first quarter (Q1) of the current fiscal year (FY) 2014-15, bankers said.
Purchasing raw hide of sacrificial animals during the Eid-ul-Azha festival has also contributed to raise the private sector credit growth during the period under review, they added.
The private sector credit growth rose to 12.15 per cent in September 2014 on a year-on-year basis from 11.39 per cent in August. It was 11.25 per cent in July.
“The rising trend of private sector credit growth may continue in the coming months also, if the prevailing political stability continues,” a senior banker told BBN in Dhaka.
He also said the credit demand may rise in the near future, as most of the banks have already reduced their interest rates on lending.
The trade financing increased substantially in the Q1 of the FY 15, mainly due to higher import of fuel oils and capital machinery, the bankers explained.
The actual import in terms of settlement of letters of credit (LCs) increased by 10.92 per cent to US$9.80 billion during the July-September of the FY 15, from $8.83 billion in the corresponding period of the previous fiscal.
Total outstanding loan stood at BDT 5,223.99 billion as of September 2014 against BDT 4,657.89 billion in the corresponding period of the previous year, the BB data showed.
BBN/SSR/AD-14Nov14-2:37pm (BST)
