NBFIs loan recovery dips 28pc
Staff Recovery :
The amount of loan recovery in the country’s non-bank financial institutions (NBFIs) dropped by 28 percent in the July-September period indicating a fragile situation in the sector thanks to widespread loan irregularities and scams.
The amount declined to Tk 6,584 crore in Q3Y24 from Tk 9,149 crore in the previous quarter, according to data from Bangladesh Bank.
Correspondingly, Loan disbursements by the 35 NBFI declined by Tk 777 crore, reaching Tk 74,140 crore in July-September, down from Tk 74,918 crore in the preceding quarter.
The central bank data also showed, deposits in the NBFIs also fell to Tk 47,838 crore in the quarter compared to those of Tk 47,906 crore April-June quarter referring clients are shying away from keeping their money in non-bank financial institutions (NBFI) due to irregularities, corruption.
Moreover, the number of deposit accounts decreased to 3.87 lakh at the end of September 2024, down from 4.31 lakh at the end of December 2023 and 4.47 lakh in September 2023, indicating a continued loss of depositors.
At the end of September, the loan-to-deposit ratio for NBFIs stood at 1.54, indicating a more aggressive lending stance compared to their deposit base.
Alarmingly, amount of defaulted loans in non-banks financial institutions was 33 per cent of the sector’s total loans in June 2024, as the sour loans surged by Tk 4,760 crore in a year.
At the end of June 2024, soured loans at the 35 NBFIs in the country totaled a record of Tk 24,711.28 crore against their total disbursed loans of Tk 74,533.74 crore which was Tk 19,951 crore in the same period last year and was Tk 23,900 crore in March 2024.
Additionally, Bangladesh’s banking sector also experienced a decline in deposits nearly by 1.0 per cent during the July-September 2024 (Q3Y24) period, the first quarter of the fiscal year 2025, compared to the preceding quarter, according to Bangladesh Bank latest data.
The total deposit liabilities, excluding interbank items, of the country’s 61 scheduled banks decreased by Tk 13, 498 crore , or 0.73 per cent, in July-September 2024 from the April-June 2024 (Q2Y24) quarter.
The total deposits stood at Tk 18,25,300 crore at the end of the third quarter of 2024.
Earlier in Q2Y24, the total deposit of all scheduled banks was about Tk 18,39,000 crore and in January-March quarter (Q1Y24) reaching over Tk 17,62,000 crore.