Bank Melli Lends $7 Billion in 10 Months

EghtesadOnline: Bank Melli Iran, the biggest state-owned lender, gave 952 trillion rials ($7.1 billion) in loans over ten months since the beginning of current fiscal year that ends in March.

News ID: ۷۸۵۳۶۴

08 February 2020

The funding was made available to more than 1.5 million loan applicants, according to a report on the BMI website.

Loans allotted to fund services sector had the lion’s share and amounted to 644.6 trillion rials ($4.8 billion), which were given to 1.26 million applicants, Financial Tribune reported.

A total of 28,176 loans applicants in the mines and industries sector received 158.8 trillion rials (1.1 billion) in the ten months. A total of 65,349 home loans worth 18.6 trillion rials were granted to people wanting to buy or build homes.

Loans to farmers amounted to 32.6 trillion rials during the period, as 71,366 farmers borrowed from the BMI.

Commercial and export sectors received 119.6 trillion rials 2.5 trillion rials.  BMI accounted for 15% of the aggregate loans.

Local banks and credit institutions paid a total of 6,262  trillion rials ($47 billion) in loans to various sectors, the  CBI report said.

Loans given for recapitalization amounted to 3,408.4 trillion rials ($25.6 billion), or 54.4% of all loans.

Working capital loans rose by 560.2 trillion rials ($4.2 billion), equivalent to the average growth of 19.7% annually across all economic sectors.

The percentage was way higher (71.3%) for businesses in the mining and industries. Out of a total of 1,904.4 trillion rials ($14.5 billion) paid to the two sectors, 1,358 trillion rials ($10.2 billion) went for recapitalization.

BMI reported in December that it had attracted the highest volume of cash both in long-term deposits and Qarz-ul-Hasana (interest-free loans) saving accounts in the first seven months of the current fiscal.

BMI public relations office said it had “attracted 32.48% of the total long-term deposits” over the period topping the list.

It added that in the usury-free savings accounts (short-term) it had 26.48% of the total deposits of all banks during the seven months.

In the same category, BMI’s total deposits in the period compared to the last month of the last fiscal (Feb. 20 to March 20) shows 7% growth.

By the end of the seventh Iranian month (Sept. 23-Oct. 22, 2019), BMI held 35.18% of total deposits with banks and credit institutions.