The Bangladesh Bank (BB) has warned 14 banks and 2 non-bank financial institutions (NBFIs) as they are unable to achieve their Covid-19 stimulus loan disbursement targets. Their SME or cottage, micro, small, and medium enterprise (CMSME) sector loan disbursement rate is below 50 per cent.
Agrani SME Financing Company, GSP Finance Company (Bangladesh), Janata Bank, Habib Bank, Woori Bank, IFIC Bank, Meghna Bank, National Bank, NCC Bank, NRB Bank, Pubali Bank, Shimanto Bank, Al-Arafah Islami Bank, First Security Islami Bank, Global Islami Bank, and Standard Bank have failed to meet the target.
Despite providing all the necessary policy support in the interest of implementing the CMSME incentive package, their activities are not satisfactory at all, stated the central bank.
A Tk 20,000 crore stimulus package was announced for the CMSME sector last year, and the 16 institutions met less than 50 per cent of their disbursement targets until June 30 this year.
Nota bene, total 16 financial institutions met around 77 per cent of their disbursement targets and loans worth Tk15,338 crore or 76.93 per cent of the set target.
Source: Dhaka Tribune