Banks' and financial institutions' credit to the big industries decreased 0.92 per cent in the April-June period of this year compared to the previous quarter of January-March, according to the latest data of the central bank.
And the industrial term loans disbursement posted only 1.47 per cent growth in the April-June period.
Experts and business leaders said that the energy crisis, high lending rate, the government's borrowings from banks and lack of business confidence were the reasons for the decline in the industrial loans.
Bangladesh Bank data shows that the total amount of term loans of the big industries was Tk 5316.43 in April-June period which was 5267.47 crore in the previous quarter.
The amount of industrial term loan disbursement stood Tk 7675.49 crore in April-June period of this year.
On the contrary, in the January-March period term loans disbursement was Tk 7564.01 crore.
Meanwhile, disbursement of working capital loans was Tk 18067.41 crore in the April-June period which was Tk 17619.86 in the previous quarter, a rise by 2.54 per cent.
According to the BB data, loans for the medium industries increased 8.76 per cent and small industries loans increased 2.80 per cent.
Bangladesh Institute of Development Studies research director Zaid Bakht said that the industrial term loans disbursement was not satisfactory due to shortage of energy and infrastructure.
He said that big industries were not interested enough to get loans and there were different problems such as high lending rate and business confidence that discouraged the enterpreneurs.
Centre for Policy Dialogue executive director Mustafizur Rahman said that the economy has been passing through a crucial time with the balance of paymentsproblems and depleting foreign exchange reserves.
He said that bank borrowings by the government rose significantly in the recent days which was a major concern for the credit flow to the private sector.
'If the term loans disbursement to the big industries slows down the overall investment might be affected,' he cautioned.
Federation of Bangladesh Chambers of Commerce and Industries president AK Azad said that if banks charge interest rates of 18 to 20 per cent for lending it would be difficult for the business community to run their business.
He said, 'Many industries are still waiting for gas connection to start their operation while inadequate power supply is also a great concern.'
'But the situation will improve soon as the government has taken initiatives for solving the energy crisis,' FBCCI chief added.
BB data shows that imports of capital machinery were worth Tk 2,894 crore in 2010-11 fiscal year while the total import posted 41.79 per cent growth.
As on October 3, 2011, the country's total foreign exchange reserves came down to $9.94 billion from around $11.32 billion in March.
According to the central bank data, the government's borrowings from banks stood at Tk 7,893 crore till 15th September, 2011.
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