In the fiscal year 2022-23, industrial loan disbursements experienced a notable rise of 31.52 per cent, reaching Taka 95,172 crore compared to Taka 72,360 crore in the previous fiscal year, as per Bangladesh Bank data.
Conversely, capital machinery imports faced a downturn, with a 55 per cent decline in letter of credit (LC) opening and nearly 30 per cent reduction in LC settlement from July to May.
Media reports claimed this while adding LC openings for importing industrial raw materials also decreased by 30.15 per cent, accompanied by a 10.82 per cent drop in settlements during the same period.
The disbursement of working capital loans in FY ’23 showed a 14.17 per cent increase, totaling Taka 4,67,172 crore even if combined efforts of banks and non-bank financial institutions resulted in a total disbursement of Taka 5,62,344 crore in FY ’23, marking a 16.78 per cent rise from the previous year.
However, the recovery of industrial loans in FY ’23 increased significantly by 64 per cent to Taka 1,06,393 crore compared to Taka 64,862 crore in the previous fiscal year. Disturbingly, central bank data indicated a rise in overdue loans in the industrial sector, reaching Taka 59,590 crore by June 2023, up from Taka 50,928 crore in June 2022.
