Home / Knowledge / News / Association/Org / Banks extend 41% credit to textile sector

Banks extend 41% credit to textile sector

03
Apr '10
Banks have extended credit amounting to Rs 138.4 billion to the private sector during July 1st, 2009 to March 20th, 2010 compared with Rs 106.9 billion provided in the same period last year.

This was disclosed by the Deputy Governor, State Bank of Pakistan, Mr. Muhammad Kamran Shehzad while presiding over a meeting of the Private Sector Credit Advisory Council (PSCAC) at SBP, Karachi. He said that about 63% of total credit has been availed for working capital while 37% for fixed investment purposes and added the main sectors that availed credit included manufacturing (including textiles), electricity, gas, water and agriculture.

Mr. Kamran said that SBP's efforts to facilitate exports have resulted in rise in banks' credit disbursement for export finance by Rs 26.2 billion during the second quarter (October - December) of FY10 in contrast with a decline of Rs 2.6 billion in the first quarter of FY10. He also pointed out that sector-wise analysis of credit to private businesses has shown healthy growth of 6.2% during Jul-Feb FY10. All major sectors availed credit; however the highest share was availed by manufacturing sector (69%) followed by electricity, gas & water (29%), agriculture (5%) etc. Out of the total credit to manufacturing sector (Rs 92.4 billion) 46% was extended to food products & beverages, 41% to textile and 10.7 % to chemicals & chemical products while spinning, weaving, finishing of textiles received Rs 38.0 billion, the Deputy Governor added.

Mr. Kamran opined that favourable performance by the agriculture sector has had a healthy impact on the Large Scale Manufacturing (LSM) which grew by 2.3% in July –January, FY10 as against a contraction of 5.4% in the same period last year. Credit flow has expanded mainly to spinning, weaving and finishing of the textile, he added.

SBP Deputy Governor said that weighted average lending rate declined to 13.71% in December 2009 from 14.32% in June 2009 while real interest rate has also declined to 2.9% from 3.5 % during the period. “However, its effect has not trickled down to private sector, as most of the resources were preempted by government for commodity financing, fertilizer import, partial settlement of power sector circular debt and financing of budget deficit,” he added.

SBP Deputy Governor said the agricultural credit disbursement during July - February, FY10 has increased to Rs 144.7 billion or 11% from Rs 130.3 billion during same period last year. He said the Credit disbursement to infrastructure related projects during September -December, 2009 has increased to Rs 27.4 billion from Rs18.9 billion in preceding period. However, he said the SME credit has declined to Rs 348.2 billion at end December 2009 from Rs 383 billion last year. Similarly, credit to housing sector has declined to Rs 74.4 billion from Rs 83.8 billion last year.

Mr. Kamran said the branch network of Islamic Banking Institutions (IBIs) has crossed 650 branches in December, 2009.


Must ReadView All

Pic: Shutterstock

Textiles | On 23rd Nov 2020

Japan aims to expand CPTPP trade pact

Japanese Prime Minister Yoshihide Suga recently said his country...

Pic: Shutterstock

Textiles | On 23rd Nov 2020

Bangladesh gets $256.5 mn from Green Climate Fund

Bangladesh recently received $256.5 million from the UN Green Climate ...

Pic: Mulberry

Apparel/Garments | On 23rd Nov 2020

Frasers raises Mulberry stake to 37%, considers offer

The Frasers Group, formerly called Sports Direct, recently announced...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The new deal is better than NAFTA for the US textile industry

Kamlesh Vaghela, RK Textiles

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Textile Industry, Head honchos

Textile Industry
Head honchos

Indian apparel industry looks poised for slow death

Valter De Carli,

Valter De Carli

Savio Macchine Tessili is at the head of a group that holds a know-how of...

DP Kumar,

DP Kumar

Weaves is South India's premier textile fair organised by Texvalley in...

Rajesh Vig & Ritu Vig,

Rajesh Vig & Ritu Vig

Rajesh Vig and Ritu Vig, promoters of the kidswear brand Happy Feet,...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Karan Bose, Hula Global

Karan Bose
Hula Global

Hula Global, a leading isolation gown manufacturer in India, has been...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search