Bangladesh, Aug. 2 -- Banks and non-bank financial institutions (NBFIs) increased lending to cottage, micro, small and medium enterprises (CMSMEs) by more than 12 per cent year-on-year in the second quarter of FY2025-26.

The credit growth was driven largely by private commercial banks, although weaker loan recovery highlighted continued financial stress among small businesses.

The banking sector disbursed Tk 701.70 billion in CMSME loans during the October-December quarter of FY2025-26, marking a 12.13-percent increase from the corresponding period a year earlier, according to the latest Bangladesh Bank (BB) data.

The amount was also 45.75 per cent higher than the Tk 481.44 billion disbursed during the July-September quarter of the sam...