Non-bank financial institutions have sanctioned 6.37 per cent of their outstanding loans without taking any security, according to a report prepared by the Bangladesh Bank’s research division.
The report showed that the amount of loans disbursed by the country’s 36 NBFIs stood at Tk 69,328.65 crore at the end of March this year.
Of the amount, the entities disbursed Tk 4,413.84 crore in advances without taking any security from the borrowers.
The volume of such loan was Tk 3,609.78 crore at the end of December, 2018.
IPDC Finance managing director and chief executive officer Mominul Islam told New Age on Monday that there were a number of segments under which loans were issued without any security.
The segments include financing for small and medium entrepreneurs, export bill discounting, work order financing and working capital financing, he said.
The BB treats such financing as advances without any security, Mominul said.
The BB data also showed that the NBFIs disbursed highest 39.73 per cent of their loans or Tk 27,541.81 crore against real estate — land, building and flat.
The second highest — 13.17 per cent or Tk 9,503.39 crore in loans — were issued against personal guarantee.
Apart from these securities, the NBFIs issued 7.68 per cent or Tk 5,322.95 crore in loans against financial obligations including insurance policies, savings certificates, cheques and fixed deposit receipts.
Besides, the NBFIs also financed against gold, shares and securities, commodities, machinery or fixed assets, and vehicles, among others.
The BB data showed that the total loan disbursement by the NBFIs increased by 1.63 per cent or Tk 1,111.71 crore in January-March this year from Tk 68,216.94 crore at the end December 31, 2018.
However, the average advance per account dropped to Tk 25.19 lakh at the end of March this year from Tk 25.26 lakh three months ago.
Although the average deposit per account with NBFIs dropped in the period, total deposits in the NBFIs witnessed a marginal rise.
Asked about the fall in the average deposit per customer, Mominul said that the trend suggested that the concentration of fund had been diversified in the NBFI sector and it was a good sign.
‘It would be better if the average deposit per customer could be reduced further,’ he said.
The BB report showed that average deposit per account dropped to Tk 12.74 lakh in March this year from Tk 12.87 lakh in December, 2018.
The total deposits in the NBFIs increased by 1.92per cent or Tk 873.26 crore to Tk 46,422.59 crore at the end of March this year from Tk 45,549.33 crore three months ago.