Credit to agriculture sector doubles

Credit to the agriculture sector has doubled, and to the industrial production sector has also surged lately.
"Of the total lending of banks and financial institutions, credit to the agriculture sector has increased by Rs 8.89 billion in the first eight months of the current fiscal year as compared to an increase by Rs 4.98 billion in the same period of the last fiscal," according to the central bank.
The low agriculture production has pulled the economic growth projection has pulled down for the current fiscal year. However, in the last few months the sector is getting enough attention from the banks and financial institutions.
Likewise, credit to industrial production sector increased by Rs 23.82 billion compared to an increase of Rs 15.93 billion in the same period last fiscal year, it said, adding that credit to the construction sector increased by Rs 7.44 billion, while the wholesale and retail trade sector registered a surge of Rs 26.85 billion, and transportation, communication and public services sector credit increased by Rs 4.97 billion in the eight months of the current fiscal year by mid-March.
Due to increased lending, overall loans and advances of banks and financial institutions have increased by 13.8 per cent (Rs 133.51 billion) compared to a rise of 8.6 per cent (Rs 73.26 billion) in the same period last fiscal.
Loans and advances of commercial banks, development banks and finance companies rose by 13.1 per cent, 8.5 per cent and 6.6 per cent, respectively during the review period, it said, adding that the year-on-year loans and advances of banks and financial institutions increased by 18.6 per cent (Rs 173.03 billion) to Rs 1,101.16 billion in mid-March.
During the first eight months of the current fiscal year, credit by banks and financial institutions to the private sector increased by 14.6 per cent (Rs 114 billion) compared to a rise of 5.9 per cent (Rs 40.76 billion) in the same period last fiscal year.
Among the private sector's credit extension, commercial banks registered a growth of 14.3 per cent, development banks 16.1 per cent, and finance companies 15.4 per cent, the central bank data revealed. "The year-on-year credit by banks and financial institutions to the private sector increased by 21.5 per cent (Rs 158.10 billion) to Rs 893.26 billion in mid-March."
Likewise, deposit mobilisation of banks and financial institutions has also increased by 6.8 per cent (Rs 68.62 billion) during the eight months of the current fiscal year. "Such deposit mobilisation had increased by 11.4 per cent (Rs 94.07 billion) in the same period of the last fiscal. "Deposit mobilisation of commercial banks, development banks and finance companies increased by 5.7 per cent, 8.5 per cent and 4.7 per cent respectively."
Deposit mobilisation of commercial banks and development banks had increased by 13.6 per cent and 6.8 per cent, respectively, whereas deposit mobilisation of finance companies had decreased marginally in the same period of the previous year.
The year-on-year deposit mobilisation of banks and financial institutions increased by 17.8 per cent (Rs 163.14 billion) to Rs 1,080.44 billion in mid-March, the central bank added.