Private credit growth rises slightly in Nov

The private-sector credit growth rate increased to 13.97 per cent in November last year from 13.91 per cent in the previous month.

Industry insiders said private credit continued to rise in the last several months due mainly to costly import financing.

Import financing increased as import payments grew due to the rise in prices of fuel and commodities in the international market following the Russia-Ukraine war, they added.

This recent surge in import payments due to USD appreciation had led to an increase in bank credit, said a central bank report. The credit growth rate was 14.07 per cent in August, the highest in recent times.

However, November’s figure is still higher than the target set for December.

The central bank in its monetary policy statement for FY2022-23 had set the private-sector credit growth target at 13.60 per cent till December and 14.10 per cent till next June of the current fiscal year.

The total outstanding credit in the private sector totalled Tk 1,406,714 crore at the end of November, the central bank data showed.