Dhaka, Chattogram divisions account for 87% of bank loans

Bank lending in Bangladesh remains largely concentrated in the Dhaka and Chattogram divisions, which together account for nearly 87% of the country's total bank credit, according to the latest report from Bangladesh Bank.

The report shows that by December, the volume of bank loans disbursed in the Dhaka division reached Tk11.96 lakh crore, accounting for 67.34% of the country's total bank credit. 

By the end of December, outstanding bank loans in the Chattogram division stood at Tk3.44 lakh crore, accounting for 19.40% of total loans. 

In contrast, other divisions received only a small share of bank lending.

In the Khulna division, total bank loans stood at Tk66,493 crore by the end of December, representing only 3.74% of total lending, while in the Rajshahi division, the amount stood at Tk66,063 crore, or 3.72% of the total. 

Bank lending in the Barishal Division amounted to Tk19,602 crore, representing only 1.10% of the country's total bank credit.

Similarly, the Sylhet division received Tk19,027 crore in loans, equivalent to 1.07% of the total.

The Rangpur division had Tk41,751 crore in bank loans, representing 2.35% of total lending, while the Mymensingh division accounted for Tk22,776 crore, or just 1.28% of the country's overall bank credit.

Sector insiders say that because a large share of bank loans is concentrated in Dhaka and Chattogram, most financial irregularities and loan fraud cases are also reported in these areas. They also note that banks are continuing to expand branches and business centres primarily in these two divisions.

Officials at Bangladesh Bank said the central bank has repeatedly issued instructions to banks to increase lending activities in other divisions. The Bangladesh Bank is currently implementing a programme to explore ways of boosting credit flows to underserved regions with its financial support.