FROM PAGE B1

At a time when Bangladesh’s economy was rebounding from the impacts of the pandemic, the Russia-Ukraine war hit the global economy and Bangladesh has not been immune from the crisis.

Fuel prices have risen, inflation surged to a record high, and businesses have been hit, Jamal said. “As a result, collections slowed.”

NBFIs have had to compete with banks as well.

Since banks’ lending rate has been below 9 per cent since April 2020, NBFIs have had to cut the lending rate to remain in the business.

“But our deposit rate is high,” said Jamal. He is, however, optimistic about the coming months, saying the performance would be better on the back of higher growth of loans and deposits.

Private sector credit growth in Bangladesh accelerated to a four-year high of 13.66 per cent last fiscal year.

“A higher lending from a Bangladesh Bank’s refinance scheme will also help NBFIs in the coming days,” he added.

The BB unveiled a refinance scheme of Tk 25,000 crore for cottage, micro, small and medium enterprises last month.