Banks miss CMSME stimulus loan disbursement target

Despite the central bank’s priority, banks have failed to achieve the stimulus loans (phase-2) disbursement target among cottage, micro, small and medium entrepreneurs (CMSMEs).

According to the latest report of BB, banks have disbursed Tk 14,746 crore against the target of Tk 19,340 crore for FY22, which was 73.77 percent of the target.

In the previous fiscal year (FY21) banks disbursed the CMSMEs loans 77 percent of the target. It means banks’ CMSMEs loans disbursement reduced by 4.15 percent in FY 22 than the FY 21.

Banks distributed these loans among 82,190 entrepreneurs in FY 22. Among them, there were 73,642 male entrepreneurs while 14,617 were female.

In June, the last month of the fiscal year (FY), Tk3323 crore of loans were distributed among 17,913 entrepreneurs. Of which, women entrepreneurs were 3,296 and male entrepreneurs were 14,617.

In the second phase, state-owned banks disbursed loans of Tk 2,280 crore, which is 82 percent of the target.

The loan disbursement by specialised banks is Tk 241 crore, which is 96 percent of the target. Foreign banks disbursed Tk 72 crore, which is 38 percent of the target and Islamic banks disbursed Tk 3,636 crore, which is 64 percent of the target.

Agrani Bank Limited has disbursed the highest loans among the state-owned banks. The bank had a target of Tk 890 crore. Against this, Agrani Bank has distributed Tk 1,113 crore, which is 125 percent of the total target.

Sonali Bank disbursed loans of Tk 537 crore against the target of Tk 500 crore, which is 107 percent of the target.

Bangladesh Krishi Bank has disbursed loans 99 percent against the target of Tk 200 crore. The bank has disbursed Tk198 crore.

Foreign City Bank NA has achieved 100 percent of the CMSMEs loan disbursement target.

Besides, the private sector AB Bank has disbursed 105 percent loans of the target. The target of the AB bank was Tk 240 crore and it disbursed Tk 253 crore.

Despite the effort of BB, banks failed to achieve the target in two consecutive years.

The CMSMEs borrowers alleged that banks harass the borrowers in the name of documents for lending.