Industries received fewer term loans from banks thanks to the latter’s cautious approach amid liquidity crunch.
As of September of this year, banks’ advances to industries in the form of term loans stood at Tk261,654 crore, which was 8% higher year-on-year.
Yet, this was the lowest growth in the last five years, according to quarterly scheduled bank statistics released recently by the Bangladesh Bank.
The amount of term loan for industries, however, declined 0.37% in the third quarter of 2022 from Tk262,618 crore at the end of the second quarter (April-June) earlier this year.
Working capital financing for industries dropped 1.49% to Tk266,724 crore in the last quarter compared to that at the end of June this year.
The central bank data showed that 35% of advances by banks went to trade financing.
Working capital and advances for term loans for industry accounted for 39.6% of total advances at the end of September this year, down marginally from that a quarter ago, and a year ago.