SME - Bangladesh Business News

Agriculture loan disbursements rise 35.46% in July-Aug

BBN Desk — Wed, 20 Sep 2017 03:03:17 +0000

Dhaka, Bangladesh (BBN)- The agriculture loans disbursement grew by 35.46 per cent in the first two months of the current fiscal year (FY), thanks to a strengthened monitoring and supervision by the central bank.

Disbursement of the loans rose to BDT 27.94 billion during the July-August period of FY 2017-18 from BDT 20.63 billion in the same period of last FY, according to the central bank’s latest statistics.

Of the BDT 27.94 billion, eight state-owned banks disbursed BDT 8.09 billion and the remaining BDT 19.85 billion by the private commercial banks (PCBs) and foreign commercial banks (FCBs).

All scheduled banks have achieved nearly 13.70 per cent of their total annual agricultural loans disbursement target for the FY18, fixed at BDT 204 billion.

The recovery of farm loans, however, rose by 34.20 per cent to BDT 28.66 billion during the period under the review from BDT 21.35 billion in the same period of the FY 17.

The central bank of Bangladesh is set to review the performances of agriculture credit disbursement and recovery of eight state-owned banks at a meeting, which is scheduled to be held in the central bank headquarters in Dhaka on September 26.

The eight state-owned banks are: Sonali Bank Limited, Janata Bank Limited, Agrani Bank Limited, Rupali Bank Limited, BASIC Bank Limited, Bangladesh Development Bank Limited (BDBL), Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB).

Talking to BBN, a BB senior official said the central bank will advice the public banks at the meeting to accelerate disbursement of the farm credits in the coming months to facilitate the farmers, particularly the flood-hit ones.

The BB will also review the performances of both agriculture credit disbursement and recovery of all PCBs and FCBs in October to know the overall situation, he added.

BBN/SSR/AD

Bangladesh’s SME loan disbursements up by 22% in 2016

BBN Desk — Thu, 02 Mar 2017 05:14:06 +0000

Dhaka, Bangladesh (BBN)- Bangladesh’s overall small and medium enterprise (SME) credit disbursement increased by 22.49 per cent in 2016 following strengthened monitoring and supervision by the central bank.
All banks and non-banking financial institutions (NBFIs) disbursed BDT 1,419.35 billion loan to 634,574 SME entrepreneurs across the country in 2016, which was 125 per cent higher than the previously-fixed target of BDT 1,135.03 billion, according to the Bangladesh Bank (BB) latest statistics.
A total of BDT 1,158.70 billion SME loan was disbursed in 2015.
“Not only disbursement but also recovery of such loans had also increased significantly in 2016,” a senior BB official told BBN in Dhaka.
The recovery of SME loans increased by more than 13 per cent to BDT 1,226.43 billion in the last calendar year from Tk 1,079.84 billion in a year ago, the BB data showed.
The loans were given to the SMEs of more than 60 sub-sectors, such as light-engineering, handicraft, flower, fish-processing, handloom, rice-mill, jamdani, Rajshahi silk, khadi, bio-gas and compost fertiliser.
The central banker also said a meeting with senior officials of all the banks and NBFIs is scheduled to be held next week to review the overall SME loan situation. “Fixation of the SME loan disbursement target for 2017 will be discussed in the meeting.”
Currently, the central bank is maintaining a three-tier monitoring system to ensure growth of the SME sector in Bangladesh.
Under the monitoring system, the BB headquarters, its ten branch offices across the country and the head-offices of all commercial banks are regularly reviewing implementation of the SME credit programmes.

BBN/SSR/AD

SME fair begins in Bangladesh capital

BBN Desk — Sun, 03 Apr 2016 17:04:22 +0000

Dhaka, Bangladesh (BBN)- A five-day 'National SME Fair 2016' began in the capital Dhaka on Sunday aiming to create employment opportunities through expediting the growth of SME across the country.
About 200 small and medium entrepreneurs of different sectors are participating in the exhibition to showcase their products at the Bangabandhu International Conference Centre.
Inaugurating the exhibition, Industries Minister Amir Hossain Amu said the government has been giving most emphasis on the growth of the SME sector as it creates the most employment for the people.
He also said SME sector has been playing a major role in the economic development of the country as it contributed most to the country's GDP.
Appreciating the state-owned SME Foundation for organising the fair, he said this will encourage new entrepreneurs to take more initiatives for business.
With SME Foundation chairman KM Habibullah in the chair, the function was also addressed, among others by, State Minister for Finance and Planning Abdul Mannan, FBCCI president Abdul Motlub Ahmed and SME Fiundation Managing Director Shafiqul Islam.
Abdul Matlub Ahmed said that SME Foundation needs to be more strengthened through capacity building to finance the SME sector.
He urged the government to take measures for capacity building of the SME foundation for the sake of the country's economic development.

BBN/SSR/AD

Aitur says MSMEs key to Bangladesh’s upper middle income transition

BBN Desk — Sat, 05 Mar 2016 07:11:37 +0000

Dhaka, Bangladesh (BBN)- Micro, Small and Medium Enterprises (MSMEs) are one of the critical drivers in the country’s upper middle income transition, Bangladesh Bank (BB) Governor Dr. Atiur Rahman said on Saturday.
“The global financial crisis acutely reminded us we need two growth engines: export and domestic demand. Fortunately, we have been working on both of these engines by empowering MSME,” BB Governor Dr. Rahman said while inaugurating an international conference in the capital Dhaka.
Experts, policy makers and senior bankers are participating in the two-day long conference on Development of Micro, Small and Medium Enterprises (MSMEs) in Bangladesh: Sharing Asian Experiences, organised by the Southeast University.
The central bank chief also said the MSME sector is the key driver of sustainable development.
In Bangladesh, MSME accounts for 24 per cent of total credit portfolio, 25 per cent of total labor force, 32 per cent of GDP (gross domestic product), 40 per cent of employment, and 80 per cent of industrial jobs, according to the BB governor.
“We’ve a young population who needs more and better jobs. We’ve actively leveraged our financial system for empowerment initiatives in agriculture, MSME, women entrepreneurship, and green financing. These initiatives have created jobs and underpinned our domestic demand,” Dr. Rahman explained.
He also said the central bank of Bangladesh has tried its best to provide regulatory and financial support to MSMEs.
Vice Chancellor of the Southeast University, Professor Dr. Anwar Hossain presided over the inaugural session while Director General (DG) of CIRDAP Dr. Cecep Effendi, DG of BIBM Dr. Toufic Ahmad Choudhury, Executive Director of InM Dr. Mustafa K. Mujeri were present as special guests.
Md. Rezaul Karim, Chairman, Board of Trustees, of the Southeast University Trust; Conference Director Professor M.A. Hakim, and Co-Director Mr. Sukamal Sinha Choudhury, experts, chief executive officers from both banks and non-banking financial institutions; representatives from trade bodies and SME Foundation attended the opening session.

BBN/SSR/AD

ADB to provide $200m loans to facilitate SME in Bangladesh

BBN Desk — Thu, 21 Jan 2016 06:17:34 +0000

Dhaka, Bangladesh (BBN)- The Asian Development Bank (ADB) is set to provide US$200 million in loans to small and medium-sized enterprises (SMEs)in rural Bangladesh to help them gain access to medium- to long-term credit.
The credit facility will target in particular firms run by women, who are mostly engaged in subsistence trade and retail activities, and are typically less educated and have less access to SME finance than men, the ADB said in an announcement in the capital Dhaka on Thursday.
The loans will be targeted at small firms outside of the metropolitan areas of Dhaka and Chittagong, with at least 15 per cent allocated for women entrepreneurs.
There are about 7.2 million SMEs in Bangladesh. They account for 90 per cent of all companies and employ 70-80 per cent of the nonagricultural workforce in Bangladesh.
In 2014, SMEs contributed 25 per cent of Bangladesh’s gross domestic product and 40 per cent of the manufacturing output.
However, SME growth is constrained by the inadequate access to finance and electricity, poor transportation, increasing labor costs, and lack of skilled manufacturing labor – especially in rural areas.
The project also includes $2.0 million in technical assistance from the Japan Fund for Poverty Reduction to help establish incubation facilities at educational institutions to promote entrepreneurship, and support entrepreneurs’ development units at the Bangladesh Bank.
It will also set up dedicated women’s desks in financial institutions, and strengthen the capacities of women entrepreneurs in accessing available credit facility through financial and legal literacy as well as in managing their enterprises.
This assistance will help in the development of SME clusters to boost their capacity to access bank financing and strengthen the backward and forward links of SMEs to the formal sector, particularly the larger export-driven industries.
“Rural firms and firms run by women struggle to get loans from banks. That means both they and the Bangladesh economy lose out,” said Peter Marro, Principal Financial Sector Specialist, in ADB’s South Asia Regional Department. “We want to help cottage industries and SMEs to expand and flourish, including those operated by women.”
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region.

BBN/SSR/AD

FAS finance comes with SME products

BBN Desk — Sat, 28 Nov 2015 05:29:32 +0000

Dhaka, Bangladesh (BBN) – FAS Finance and Investment Ltd, a non-bank financial institution, is working to popularise its SME products at the Banking Fair Bangladesh-2015.

The non-bank financial institution (NBFI) came with it as it will disburse a large amount of loan to its clients under the SME product.

The clients will be allowed to receive maximum loan amount of Tk 20 crore from the NBFI to expand their enterprises under the product, Tanvir Ahmed, a senior officer of FAS Finance and Investment Ltd, told the BBN during the ongoing fair.

The clients, who will receive SME loan under the product, will have to repay the loan by five years.

The female entrepreneurs, however, will be able to receive maximum credit amount of BDT 20 lakh without any collateral securities.

The rate of interest of the product is 10 per cent as the NBFI will disburse the loan by taking fund from Bangladesh Bank refinance scheme.

The repayment period is five year.

Bangladesh Bank Governor Dr Atiur Rahman inaugurated the five-day long banking fair on Bangla Academy premises in Dhaka on Tuesday aiming to build a banking nation through boosting the ongoing financial inclusion campaign in Bangladesh.

BBN/SS/AI

IBBL highlights SME, retail banking at fair

BBN Desk — Wed, 25 Nov 2015 09:45:42 +0000

Dhaka, Bangladesh (BBN) - Islami Bank Bangladesh Ltd is emphasising SME and retail banking at the Banking Fair Bangladesh-2015 to create new entrepreneurs and speed up its expansion.

The bank has recently introduced a SME lending product namely “Women Entrepreneur Investment Project”, Kazi Md Ismail, senior principle officer of the IBBL, told the BBN during the ongoing Banking Fair Bangladesh 2015.

Bangladesh Bank Governor Dr Atiur Rahman inaugurated the five-day long banking fair on Bangla Academy premises in Dhaka on Tuesday.

Under the lending product, the women entrepreneurs will be allowed to receive loan between BDT 5 lakh and BDT 50 lakh paying 11 per cent interest.

The bank is also highlighting its ‘Khidmah Credit Card’ which is now being operated in line with the shariah-based banking.

The ceiling of the credit card is BDT 2 lakh.

The IBBL is now offering Salary Card to the industrial workers so that they withdraw their salary from the bank’s ATM booth easily.

The bank will provide the salary card to the workers of a company after signing an agreement with the owners of the enterprise.

The bank is also encouraging the clients to use the IBBL’s e-payment gateway namely ‘iPaysave’ for online shopping.

BBN/RZ/AI

BB governor advises bankers to develop new entrepreneurs

BBN Desk — Wed, 25 Nov 2015 09:01:20 +0000

Dhaka, Bangladesh (BBN)- Bangladesh Bank (BB) Governor Dr Atiur Rahman has advised the bankers to move forward with financial supports to help developing new entrepreneurs across the country.

“You (bankers) have to extend your supports to the new entrepreneurs aiming to create employment opportunities through establishing their business entities,” BB Governor Dr Rahman said.
The BB chief was addressing a Financial Literacy Campaign on Small and Medium Enterprises (SME) at Abdul Karim Sahitya Bisharad Hall on Bangla Academy ground in Dhaka on Wednesday as part of the ongoing banking fair.

The central bank of Bangladesh organised the five-day long Banking Fair Bangladesh 2015 aiming to build a banking nation through expediting the ongoing financial initiative across the country.

The fair has been going on from November 24.

The BB governor also asked the banks and non-banking financial institutions (NBFIs) to expedite the implementation of ongoing financial inclusion programmes across the country by strengthening financing in SME sector specially for women entrepreneurs.

The banks and NBFIs have already disbursed loans to around 6,000 women entrepreneurs across the country in line with the BB’s advices, the governor highlighted.

The central bank earlier asked all banks and NBFIs to provide minimum BDT 50,000 as loan from their each braches to at least a woman entrepreneur by the end of this year.

Currently, 56 scheduled banks and 31 NBFIs are running their businesses with more than 9,000 branches across the country.

“We’re planning that the banks and NBFIs will have to provide the same amount of loan to at least two women entrepreneurs instead of the existing one from the next year,” Dr Rahman disclosed.

He hoped that with the initiative, the small women entrepreneurs will turned into meddle ones gradually.

“We’ve not only created separate unit managed by women officials for women entrepreneurship development but also has directed all banks and NBFIs to have similar units,” he noted.

As a result, thousands of women entrepreneurs are having access to finance in different clusters, the governor explained.

Besides, the central bank of Bangladesh has taken special policy measures and opened refinance windows to facilitate women empowerment in various sectors.

Describing various initiatives, taken by the BB, in the last six years, Dr Rahman said: “We want women empowerment for achieving balanced and gender friendly economic growth in Bangladesh.”

SK Sur Chowdhury, deputy governor of BB, advised the bankers to go for SME entrepreneurs instead of large ones for minimising their risks.

“The banks will have to go door-to-door for creating new entrepreneurs across the country,” the deputy governor explained.

Among others, Executive Director of BB Nirmal Chandra Bhakta, Vice Chairman of the Association of Bankers, Bangladesh (ABB) Mohammad Abdul Mannan, Chairman of the Bangladesh Leasing and Finance Companies Association (BLFCA) Asad Khan and successful women entrepreneurs from different areas of Bangladesh also spoke on the occasion.

BBN/SSR/AD

Shahjalal Bank underlines product for women

BBN Desk — Wed, 25 Nov 2015 05:41:30 +0000

Dhaka, Bangladesh (BBN) - Shahjalal Islami Bank Ltd focused for a newly-introduced SME product for women entrepreneurs at the Banking Fair Bangladesh-2015 aiming to create women businesspersons.

The product titled ‘Prottasha’ will create new women entrepreneurs, Firoz Kamal, the first executive officer of the Shahjalal Islami Bank, told the BBN during the fair.

Bangladesh Bank Governor Dr Atiur Rahman inaugurated the five-day long banking fair on Bangla Academy premises in Dhaka on Tuesday.

Under the product, the women entrepreneurs will get credit facility from the bank with only nine per cent interest rate, Mr Kamal said.

The bank will provide the loan from Islamic refinance scheme operated by the central bank.

The women entrepreneurs will be able to receive maximum BDT 10 lakh from the bank without any collateral security.

The bank, however, will disburse SME loan to all clients with imposing interest rate of 13 per cent to 14 per cent.

The bank had recently decreased the interest rate of SME loan as the women entrepreneurs earlier paid 14 per cent interest rate, Mr Kamal said.

For general client the interest rate is 18 per cent, he added.
The bank is also focusing the school banking and it offers the students free debit card if they open account with the bank.

The savings account holder under the school banking will be able to receive five per cent interest against their deposit.

BBN/JR/ANS

Asia’s SMEs need growth capital: ADB

BBN Desk — Wed, 02 Sep 2015 11:28:17 +0000

Manila, Philippines (BBN)-Asia’s small-and medium-sized enterprises (SMEs) need finance to help them grow into dynamic and internationally competitive companies.
This is key to strong, sustainable growth in Asia as the world recovers from the recent global economic slowdown, says a new report from the Asian Development Bank (ADB).
“Asia has millions of SMEs but few of them are able to grow to the point where they can innovate or be part of the global supply chain. To do this, they need more growth capital and opportunities to access various financing channels,” said Noritaka Akamatsu, senior advisor in ADB’s Sustainable Development and Climate Change Department.
The Asia SME Finance Monitor 2014, which assesses 20 countries in developing Asia, noted that SMEs make up an average of 96 per cent of all registered firms and employ 62 per cent of the labour force.
However, they contribute only 42 per cent of economic output, said the report produced by the ADB’s Sustainable Development and Climate Change Department.
Regional integration and trade liberalisation means firms need to shift from being domestically focused to being more globally targeted.
This also offers opportunities for smaller firms to explore offshore markets while exposing them to increased competition.
Governments in the region need to help SMEs become more competitive and able to participate in global value chains.
This includes governments making it easier for SMEs to access new financing, such as supply chain finance.
Limited access to bank credit is a persistent problem in Asia and the Pacific.
Lending to SMEs has declined over the course of the global financial crisis and in 2014, they received only 18.7 per cent of total bank loans.
Several countries have made progress tackling this.
Papua New Guinea and the Solomon Islands have made it easier for companies to borrow using movable assets as collateral, Indonesia and the Philippines have introduced mandatory bank lending quotas to SMEs, and Kazakhstan and Mongolia have encouraged loan refinancing schemes.
However, the region needs to further develop credit bureaus, collateral registries, and credit guarantees to expand financial outreach, particularly in low-income countries, the report said.
The nonbank finance industry—which typically includes finance companies, factoring and leasing firms, for example— in Asia and the Pacific is still too small to meet the financing needs of SMEs, with its lending only one tenth of total outstanding bank loans in the region.
Governments need to put in place a comprehensive policy framework to help nonbank financial institutions expand their SME financing options.
Ongoing efforts to open up the equity markets to SMEs would also help provide SMEs with the long-term financing they need to mature.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, it is owned by 67 members—48 from the region. In 2014, ADB assistance totaled $22.9 billion, including co-financing of $9.2 billion.
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