DHAKA, Dec 31, 2017 (BSS) - The credit disbursement for the small and medium enterprises (SMEs) increased by 21.60 percent in the first nine months of 2017 compared to the corresponding period in the last year, according to the Bangladesh Bank (BB) data.
"The growth of SME loan disbursement witnessed upward trends as the central bank has strengthened further its monitoring and supervision over the SME loan disbursement activities of the banks and financial institutions (FIs)," a BB senior official told BSS here today.
All banks and FIs have already disbursed Taka 1,23,046.13 crore loan in January-September period in 2017 which was Taka 21,853.99 crore up compared to the same period in 2016.
Banks and FIs have already disbursed 91.93 percent of their SME loan target in the year while the disbursement rate was 89.15 per cent in the corresponding period in previous year.
BB had set Taka 1,33,853.59 crore loan disbursement target for 2017 which was Taka 1,13,503.43 crore in 2016.
Additional Managing Director of the Mutual Trust Bank (MTB) M Hashem Chowdhury said SMEs have already become the most powerful and sustainable pillars of Bangladesh economy, covering both non-traditional manufacturing and service sectors.
"Bangladesh Bank is also working relentlessly towards the development of the sector to achieve higher GDP growth" he added.
According to the BB data, FIs have shown better performance than the commercial banks as the FIs disbursed Taka 6,389.64 crore till September which was Taka 2,010.68 crore or 45.92 percent up compared to corresponding period in the previous year.
During January-September period, commercial banks disbursed Taka 1,16,656.49 crore which was Taka 19,831.51 crore or 20.48 percent up compared the same period of the previous year.
Banks and FIs have disbursed Taka 29,557.18 crore loans in the manufacturing sector, Taka 15,770.81 crore in the service sector and Taka 77,718.14 crore in the trade sector.
A total of 5,58,566 manufacturing, service and trade organisations received the loans till September 2017 .
Banks and FIs also provided Taka 1,968.68 crore loans in the cottage industries, Taka 16,005.87 crore loans in the micro industries, Taka 49,940.71 crore loans in the small industries and Taka 55,130.88 crore loans in the medium industries.