Credit Distribution in Agriculture and Industry

The disbursement of credit in both agriculture and industry sector in recent times is seen as decreasing trend which is alarming for the economy. The rate of growth of the disbursement of the industrial term loan and agricultural credit stood negative in the first quarter of the FY 2013-14. The rate of growth in the industrial term loan has been experiencing an irregular movement with negative rate of growth since April-June, 2011. Adequate capital is needed for fast industrialisation of a country. Loan is one of the
most important factors of capital formation, mainly for developing country like Bangladesh.
The disbursement of industrial term loan stood Tk. 8880.79 crore in the first quarter of the current FY 2013-14, which is the lowest among the last five quarters, whereas it was Tk. 9720.3 crore in the first quarter of the previous FY 2012-13. In the first quarter of the current FY 2013-14, disbursement of the
industrial term loan decreased by Tk. 1632.48 crore compared to the last quarter of the previous FY 2012-13. The rate of growth of the disbursement of the industrial term loan stood negative at 15.53 percent in the first quarter of the FY 2013-14, compared to the positive rate of growth of 4.49 percent in the last quarter of the FY 2012-13. If the trend remains as usual, the disbursement might decline to Tk. 8657.887 crore as well as the rate of growth might become negative and will reach at 2.51 percent in the second quarter of the current FY 2013-14. Recovery of the industrial term loan has been increasing but at an insignificant amount. The condition of the recovery of the industrial term loan has been improved by insignificant amount since the last quarter of the previous FY 2012-13.