The volume of defaulted loans, at the end of March this year, was 12.57 per cent of the total loans disbursed in this sector and stood at Taka 1,541 crore.
Media reports maintained this citing the sources from within the central bank, according to whom, in December 2021, the amount of defaulted loans in the sector was Taka 1,288 crore even if at the end of March 2022, the defaulted loans of the state-owned banks stood at Taka 1,370.62 crore, which is 19.23 per cent of the disbursed loans.
Meanwhile, speaking to the media, people involved in the leather sector, reportedly, maintained traders were not able to repay the loans as the leather sector hit a snag even if banks have been acting very cautious as many traders became defaulters due to various reasons including the use of leather loans in other sectors.
