State banks saw rapid credit growth in 2016

Four state-owned commercial banks registered higher credit growth in late December last year thanks to an increase in small business loans.

Even two of them have exceeded the credit limit set by the central bank.

The Bank of Bangladesh held a meeting Wednesday with senior bank executives Sonali, Janata, Agrani and Rupali to discuss their performance in accordance with the objectives set out in the understanding protocols that the regulator has signed with the lenders.

The governor of BB, Fazle Kabir, presided over the meeting.

According to the MoU review report, Sonali Bank's adjusted loan growth was 9.92% or TK 19,500 crore last year compared to 17,800 cros in 2007. The ceiling The largest bank in the country was 10%.

Adjusted loan growth excludes loans to the government and the agricultural sector. BB has set the loan disbursement target on the basis of adjusted loans.

Total growth in Sonali Bank's borrowing was 10.85% or 32,600 last year's cuts compared with Tk 29,400 crore the previous year.

The bank experienced a negative credit growth of 5.26% in 2015 after exceeding the BB ceiling of 6%.

All four banks experienced stronger credit growth last year as banks focused on SME lending that moved away from corporate finance, said Ms Obayed Ullah Al Masud, director General of Sonali Bank.

"We are very serious about increasing our loans to small businesses," he said.

The governor of the BB is also satisfied with the performance of the state banks, he said.

Janata Bank has exceeded the objective of credit growth. The growth of its adjusted loan was 16.70 percent last year, against 12 percent set by the central bank.

Total growth in bank borrowing was 9.91 percent in 2015 against the target of 10%.

The Bank's total adjusted loan stood at 31,100 cros in 2016 compared with Tk 26,600 crore a year ago.

The disbursement of the Agrani bank increased by 8.31% last year against the 10% ceiling. Total adjusted loans amounted to Tk 21,600 crore, up from Tk 20,000 crore a year ago. In 2015, Agrani's credit growth was 9.63% compared to the target of 10%.

Bank Rupali also exceeded the target of the deal by 17.50%, registering credit growth of 18.81% last year. The total adjusted loan was 11,500 notches compared to Tk 9,676 crore in 2015. The bank's loans increased by 11.92% in 2015 compared to the set target of 12%, according to BB data .

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