The amount of credit growth was higher than the deposit growth in 21 banks in last seven months, shows the latest data of the central bank released last week.
Bangladesh Bank data shows the loan disbursement by those banks was 23 per cent in the last January-July period while their deposit was 21 per cent on an average.
Experts warned that this was not comfortable for the banks as it will create new problems in future as the banks would have to keep more asset as provision for risks.
According to the BB data, among the 21
banks there are four state-owned commercial banks, nine private commercial banks, seven foreign banks and one specialised bank.
The average rate of deposit among the banks was 21.49 per cent but the banks disbursed higher amount of credit from their reserve funds.
According to the BB, import financing and private sector loans, especially for the small and medium enterprises, contributed to the rise of loan disbursement.
The total value of import L/Cs opened by the banks during FY 2010-11 was $ 38582.35 million which was 34.04% higher than that of the same period of the previous year.
BB data shows that loan disbursement was higher in the four state-owned banks.
The amount of deposit in the four state-owned banks was Tk 1,05,636 crore, private banks' deposit was Tk 2,56,732 crore and the nine foreign banks' deposit was Tk 27,849 crore.
In total, loan disbursement by 30 private banks increased by 21.85 per cent in the last six month and the average deposit growth was 26.14 per cent.
But loan disbursement was higher in nine private banks — Pubali Bank, Uttara Bank, United Commercial Bank, IFIC, The City Bank, National Bank, Social Islami Bank, ICB Islamic Bank and BRAC Bank.
Among the foreign banks, loan disbursements by State Bank of India was -4.44 per cent and National Bank of Pakistan -16 per cent, which were in the negative position.
BB data shows that among the specialised banks, the loan disbursement of BASIC Bank was highest; the amount of its loan disbursement was 46.68 per cent while the deposit was 38 per cent.
In FY2010, the amount of credit given by the state-owned commercial banks was Tk 61,978 crore, private commercial banks Tk 1,73,426 crore, foreign banks Tk 15,920 crore and specialised banks Tk 16,982 crore.
In FY2010-2011, the state-owned commercial banks posted a year-on-year lending growth of 31 per cent, private commercial banks 23 per cent and foreign banks 28 per cent, while the specialised banks showed a negative growth of 8.4 per cent, the BB data shows.
Former governor of Bangladesh Bank Salehuddin Ahmed said that the increase of loan disbursement than the deposit might affect the capital strength of the banks as they would have to keep more money for risk provision.
He said that it was not a comfortable situation for the banks.
'Loan disbursement should be checked whether it's going to the right purposes or in the productive sector,' he cautioned.
Source : New Age
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