In the April-June quarter of 2023, sustainable financing from the banking sector decreased slightly to Taka 35,196 crore, in comparison to Taka 35,387 crore at the same period in 2023.
Similarly, non-bank financial institutions (NBFIs) witnessed a decrease in sustainable finance, with the figure falling from Taka 1,306 crore to Taka 1,301 crore, as reported in a Bangladesh Bank quarterly review on sustainable finance for both banks and NBFIs.
Sustainable finance pertains to business activities conducted in a manner that contributes to the reduction of external carbon emissions and the internal carbon footprint.
However, during the April-June period, banks demonstrated a positive trend in green financing, showing a 13.3 per cent increase compared to the preceding quarter ending in March 2023.
The banks’ investments in green projects reached Taka 3,144 crore at the end of June, up from Taka 2,775 crore at the end of March 2023.
Conversely, green financing by NBFIs decreased, reaching Taka 783 crore at the end of June, down from Taka 839 crore at the end of March.
These figures indicate that green finance accounted for 6.16 per cent of the total loan disbursements by banks and 17.88 per cent by NBFIs, emphasizing their commitment to environmentally sustainable initiatives.
