Bangladesh Bank (BB) has decided to recognise 17 banks and non-bank financial institutions (NBFIs) that have met their Covid-19 stimulus loan disbursement targets in the cottage, micro, small, and medium enterprise (CMSME) sector.
The central bank authorities will hand over honorary certificates to the managing directors of these banks in recognition of their efforts. The function will be held on 20 October at Bangladesh Bank premises.
Among the awardees, there are 13 banks and four financial institutions.
Agrani Bank, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), United Commercial Bank Limited (UCBL), Premier Bank, Uttara Bank, Prime Bank, Mutual Trust Bank, Madhumati Bank, Bank Asia, Commercial Bank of Ceylon, Eastern Bank and BRAC Bank are among the banks to be certified.
The non-bank financial institutions (NBFI) to be certified by Bangladesh Bank are IPDC, IDLC, Lankabangla and United Finance.
According to central bank officials, the banks and financial institutions whose loan disbursement targets were more than Tk10 crore were selected for the awards.
The central bank stated that these recognitions are being given to encourage other banks and financial institutions to lend to small borrowers.
Earlier on 5 April last year, Prime Minister Sheikh Hasina announced a CMSME stimulus package to aid the enterprises affected by the coronavirus outbreak.
A fund of Tk 20,000 crore had been set up as working capital to facilitate these loans.
On 13 April of the same year, the Bangladesh Bank issued a policy on disbursement of loans from the package.
The loan interest rate of this fund was set at 9%. However, the recipients are to pay 4% of the interest while the remaining 5% is being subsidised by the government.
About Tk1,500 crore was disbursed from this fund in the last financial year.
At the same time, Bangladesh Bank served show-cause notices on 14 banks and two non-bank financial institutions (NBFIs) for failing to achieve the Covid-19 stimulus loan disbursement target in the CMSME sector on September 4 this year.