Kamruzzaman Bablu :
Eight private and state-owned commercial banks have decided to disburse a sum of Tk7.06 billion as loans among local traders for purchasing rawhide during the Eid-ul-Azha when thousands of cattle are sacrificed, sources said.
The rawhide collected during the Eid-ul-Azha caters too much of Bangladesh’s demand for leather.
Bank and Financial Institutions Division officials said, the rawhide loan target for the state-run banks had been approved by the respective banks’ boards of directors.
The banks, however, said the rawhide traders would have to repay the outstanding loans before becoming eligible to get new loans this year.
Many of the rawhide traders failed to pay off loans, as prices of rawhide dropped in the global market.
Data showed that leather prices declined by 30 to 35 percent year-on-year in 2016 as non-leather footwear items gained popularity in international market. According to the Bank Division sources, eight banks disbursed Tk 6.64 billion as loans among rawhide traders last year.
But most of the loans have not been repaid yet and the defaulters will not be eligible for new loans this year, officials said.
However, the state-run banks will disburse loans to the defaulters if they have already repaid 35 percent of the previous loans, a Sonali Bank official said.
The state-run four banks usually lend big amount of money to rawhide traders. Sonali Bank sources said three firms requested the Sonali Bank’s Bangabandhu Avenue Branch for Tk170 crore loans to buy rawhide during the Eid-ul-Azha.
The Sonali Bank authorities already decided to provide the loans if the firms complied with the bank’s condition of repaying the outstanding loan amount as per terms and conditions. Three firms last year borrowed Tk1.5 billion from the same branch. Janata Bank, another state-run commercial bank, disbursed Tk2 billion last year to rawhide trading firms. The two of the firms have not yet repaid the loans.
The bank’s board of directors has decided to disburse Tk2.50 billion rawhide loans this year while Agrani Bank will lend Tk1.5 billion. Last year Agrani Bank disbursed Tk130 crore as loans to rawhide traders.
Rupali Bank will disburse Tk 600 million loans among rawhide traders this year. It lent the same amount last year.
Bangladesh Krishi Bank, a state-owned specialised bank, will disburse Tk 40 million rawhide business this year, a decreased amount from the last year’s Tk 60 million.
The City Bank and the United Commercial Bank have decided to pay Tk 200 million and Tk180 million loans respectively to rawhide traders.
Eight private and state-owned commercial banks have decided to disburse a sum of Tk7.06 billion as loans among local traders for purchasing rawhide during the Eid-ul-Azha when thousands of cattle are sacrificed, sources said.
The rawhide collected during the Eid-ul-Azha caters too much of Bangladesh’s demand for leather.
Bank and Financial Institutions Division officials said, the rawhide loan target for the state-run banks had been approved by the respective banks’ boards of directors.
The banks, however, said the rawhide traders would have to repay the outstanding loans before becoming eligible to get new loans this year.
Many of the rawhide traders failed to pay off loans, as prices of rawhide dropped in the global market.
Data showed that leather prices declined by 30 to 35 percent year-on-year in 2016 as non-leather footwear items gained popularity in international market. According to the Bank Division sources, eight banks disbursed Tk 6.64 billion as loans among rawhide traders last year.
But most of the loans have not been repaid yet and the defaulters will not be eligible for new loans this year, officials said.
However, the state-run banks will disburse loans to the defaulters if they have already repaid 35 percent of the previous loans, a Sonali Bank official said.
The state-run four banks usually lend big amount of money to rawhide traders. Sonali Bank sources said three firms requested the Sonali Bank’s Bangabandhu Avenue Branch for Tk170 crore loans to buy rawhide during the Eid-ul-Azha.
The Sonali Bank authorities already decided to provide the loans if the firms complied with the bank’s condition of repaying the outstanding loan amount as per terms and conditions. Three firms last year borrowed Tk1.5 billion from the same branch. Janata Bank, another state-run commercial bank, disbursed Tk2 billion last year to rawhide trading firms. The two of the firms have not yet repaid the loans.
The bank’s board of directors has decided to disburse Tk2.50 billion rawhide loans this year while Agrani Bank will lend Tk1.5 billion. Last year Agrani Bank disbursed Tk130 crore as loans to rawhide traders.
Rupali Bank will disburse Tk 600 million loans among rawhide traders this year. It lent the same amount last year.
Bangladesh Krishi Bank, a state-owned specialised bank, will disburse Tk 40 million rawhide business this year, a decreased amount from the last year’s Tk 60 million.
The City Bank and the United Commercial Bank have decided to pay Tk 200 million and Tk180 million loans respectively to rawhide traders.
