Private sector credit jumps in June | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
July 10, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JULY 10, 2025
Private sector credit jumps in June

Banking

Sakhawat Prince
28 July, 2022, 09:45 pm
Last modified: 29 July, 2022, 11:49 am

Related News

  • Contractionary stance will hamper private sector growth: DCCI
  • Private credit growth drops to 7.28% in Dec
  • Private sector credit crosses BB target in March
  • Private credit growth slows to 9.95% in January
  • December sees uptick in pvt sector credit

Private sector credit jumps in June

Sakhawat Prince
28 July, 2022, 09:45 pm
Last modified: 29 July, 2022, 11:49 am
Infographic: TBS
Infographic: TBS

The banking sector saw a big jump in credit flow to the private sector in June, backed by high import costs amid rising dollar prices.

The credit grew to 13.66% during this time – the highest in the last 43 months. The rate was higher than the previous month's 12.94% and close to the monetary ceiling of 14.1% set for the current fiscal year.

Average credit growth of the last fiscal year stood at 10.67%, far below the monetary target of 14.8%, according to Bangladesh Bank data.  Making inroads in March 2022, the Covid-19 pandemic along with deepening uncertainties had pushed down the private sector credit growth to around 8%.

Bankers put this healthy growth down to rising import costs because of the continuous gain of the dollar against the taka and the extended cash margin for imports of different goods, including non-essential ones. 

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Safiul Alam Khan Chowdhury, managing director and chief executive officer of Pubali Bank, told The Business Standard that credit flow to the private sector has gone up mainly owing to increased imports of capital machinery and other industrial materials in post-pandemic times. 

Since January this year, Pubali Bank's lending to the private sector has increased. Its disbursements in the last few months amounted to around Tk3,000 crore, he noted. 

As part of a tightening of money flow, private sector credit growth ceiling was slashed to 14.1% for FY23 from 14.8% of FY22, according to the monetary policy statement for the current fiscal year.

In July-May of the last fiscal year, the country's import payments rose by 39% to $81. 49 billion, marking a sharp increase since the second wave of the pandemic.

Seeking anonymity, the managing director of a first-generation private bank said some banks' lending to the private sector has increased since the reopening of economic activities in full swing after the pandemic-led restrictions.

Besides, the rising prices of dollars have led to more demand for cash liquidity, he noted.

The central bank had to sell additional dollars as a result of growing imports in the country, which put the country's reserves under strain. The increased cash margin provision against imports of different products has also given a rise to demand for bank loans, he also said.

The Bangladesh Bank has imposed a 100% cash margin for opening letters of credit on cars, electronics, gold, precious metals, RMG, and pearls, among other items, to discourage imports in a bid to keep the country's currency and debt management more integrated and stable.

Top News

Private sector credit growth

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Council of Advisers' meeting on Thursday (10 July). Photo: CA Press Wing
    Govt cancels 'Sir' address directive from Hasina's rule
  • In terms of stream of education, girls maintained their excellence as well. Photo: TBS
    Lowest SSC pass rate in 17 years as over 6 lakh students fail
  • No final consensus yet on CJ appointment from senior-most judges: Salahuddin
    No final consensus yet on CJ appointment from senior-most judges: Salahuddin

MOST VIEWED

  • Graphics: TBS
    BB raises startup fund limit, drops upper age barrier
  • Workers pack undergarments at the packing section of a garment factory in Ashulia, on the outskirts of Dhaka, Bangladesh, April 19, 2025. Photo: REUTERS/Fatima Tuj Johora
    After US tariffs, jobs hang by a thread in Bangladesh's garments sector
  • Global Islami Bank rectifies 2023 figures, reports Tk2,259cr loss instead of Tk128cr profit
    Global Islami Bank rectifies 2023 figures, reports Tk2,259cr loss instead of Tk128cr profit
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Audit reports of most banks contain cooked up data: BB governor
  • File photo of containers at Chattogram port/TBS
    US buyers push Bangladeshi exporters to share extra tariff costs
  • CA orders law enforcers to complete all election preparations by December
    CA orders law enforcers to complete all election preparations by December

Related News

  • Contractionary stance will hamper private sector growth: DCCI
  • Private credit growth drops to 7.28% in Dec
  • Private sector credit crosses BB target in March
  • Private credit growth slows to 9.95% in January
  • December sees uptick in pvt sector credit

Features

Photo: Collected/BBC

What Hitler’s tariff policy misfire can teach the modern world

1h | The Big Picture
Illustration: TBS

Behind closed doors: Why women in Bangladesh stay in abusive marriages

4h | Panorama
Purbachl’s 144-acre Sal forest is an essential part of the area’s biodiversity. Within it, 128 species of plants and 74 species of animals — many of them endangered- have been identified. Photo: Syed Zakir Hossain/TBS

A forest saved: Inside the restoration of Purbachal's last Sal grove

4h | Panorama
Women are forced to fish in saline waters every day, risking their health to provide for their families. Photo: TBS

How Mongla’s women are bearing the brunt of rising salinity

1d | Panorama

More Videos from TBS

OpenAI to release web browser in challenge to Google Chrome

OpenAI to release web browser in challenge to Google Chrome

16m | TBS World
Will the title 'Honorable and Excellency' be abolished?

Will the title 'Honorable and Excellency' be abolished?

1h | TBS Today
July Declaration must be constitutionally recognized: Akhtar Hossain

July Declaration must be constitutionally recognized: Akhtar Hossain

46m | TBS Today
We want to recognize the July Uprising on a national level: Salahuddin Ahmed

We want to recognize the July Uprising on a national level: Salahuddin Ahmed

1h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net