August 8, 2022, 1:08 am

Staff Correspondent

2022-08-01 20:48:33 BdST

Banks miss CMSMEs stimulus loans disbursement target: BB report

Despite the central bank's priority, banks have failed to achieve the stimulus loans (phase-2) disbursement target among cottage, micro, small and medium entrepreneurs (CMSMEs).

According to the latest report of BB, banks have disbursed Tk 147.46 billion against the target of Tk 193.40 billion for FY22, which is 73.77 percent of the target.

In the previous fiscal year (FY21) banks disbursed 77 percent of the target of CMSMEs loans. It means banks' CMSMEs loans disbursement was reduced by 4.15 percent in FY22.

Banks distributed these loans among 82,190 entrepreneurs in FY22. Among them, there were 73,642 male entrepreneurs while 14,617 were female.

In June, the last month of the fiscal year (FY), Tk 33.23 billion of loans were distributed among 17,913 entrepreneurs. Of which, women entrepreneurs were 3,296 and male entrepreneurs were 14,617.

In the second phase, state-owned banks disbursed loans of Tk 22.80 billion, which is 82 percent of the target.

The loan disbursement by specialised banks is Tk 2.41 billion, which is 96 percent of the target. Foreign banks disbursed Tk 720 million, which is 38 percent of the target and Islamic banks disbursed Tk 36.36 billion, which is 64 percent of the target.

Agrani Bank Limited has disbursed the highest loans among the state-owned banks. The bank had a target of Tk 8.90 billion. Against this, Agrani Bank has distributed Tk 11.13 billion, which is 125 per cent of the total target.

Sonali Bank disbursed loans of Tk 5.37 billion against the target of Tk 5.0 billion, which is 107 percent of the target.

Bangladesh Krishi Bank has disbursed loans 99 percent against the target of Tk 2.0 billion. The bank has disbursed Tk 1.98 billion.

Foreign City Bank NA has achieved 100 per cent of the CMSMEs loan disbursement target.

Besides, the private sector AB Bank has disbursed 105 percent loans of the target. The target of the AB bank was Tk 2.40 billion and it disbursed Tk 2.53 billion.

Despite the effort of BB, banks failed to achieve the target in two consecutive years.

The CMSMEs borrowers alleged that banks harass the borrowers in the name of documents for lending.

Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.

Popular Article from Economy