Business Report :
Private sector credit flow had slowed down in August as economic activity was at a standstill amid the mass uprising that led to the fall of Sheikh Hasina regime.
Under the domino effect of the political unrest, the country’s overall economic activities remained almost at a standstill during most parts of that month. As part of the private sector entrepreneurs’ cautious business approach following the regime change, they more or less halted their business expansion plan to avert any further investment woes, sources said.
Apart from the chaos associated with the changeover in state power, the latest event of flooding that inundated major parts of the country’s southeastern regions also forced the private-sector players to be watchful before putting in any further capital investment.
And it is clearly reflected in the data of credit flow to the private sector from the banking channel.
The growth in credits to the private sector came down to 9.86% in August 2024 on a year-on-year basis from 10.13% a month ago, according to the central bank’s latest statistics.
It was 0.06-percentage-point higher than the Bangladesh Bank (BB) target of 9.80% for the first half (H1) of the current FY25.
