Defaulted loans in 9 new banks soar by 783pc to Tk 392cr in H1

Staff Correspondent | Published: 23:44, Oct 21,2016

 
 

Defaulted loans in nine newly-established banks increased by 782.74 per cent to Tk 392.29 crore in the first half of this calendar year as the banks disbursed loans aggressively violating the Bangladesh Bank rules and regulations, said officials of the central bank.
The nine banks are Meghna Bank, Midland Bank, Modumoti Bank, NRB Bank, NRB Commercial Bank, NRB Global Bank, South Bangla Agriculture and Commerce Bank, The Farmers Bank and Union Bank.
The central bank provided licences to the nine banks in 2012 considering the political background of the owners of the banks despite severe criticisms from different corners, a BB official told New Age on Thursday.
Most of the directors and chairmen of the nine new banks are directly involved with either the politics of the ruling Awami League or that of its allies.
The BB inspection teams have already unearthed various types of corruptions in disbursing loans at some of the new banks.
The BB data showed as of June 30, 2016, classified loans at Meghna Bank increased to Tk 17.43 crore from zero non-performing loan as on December 31, 2015, that of Midland Bank to Tk 13.99 crore from Tk 13.97 crore, that of Modumoti Bank to Tk 14.77 crore from zero NPL, that of NRB Bank to Tk 18.36 crore from Tk 2.21 crore, that of NRB Commercial Bank to Tk 82.40 crore from Tk 5.87 crore, that of NRB Global Bank to Tk 17.05 crore from Tk 13.24 crore, that of South Bangla Agriculture and Commerce Bank to Tk 2.30 crore from zero NPL, that of The Farmers Bank to Tk 223.28 crore from Tk 9.06 crore
and that of Union Bank to Tk 2.71 crore from Tk 0.09 crore.
The BB has recently detected huge anomalies in disbursing loans by The Farmers Bank and the classified loans in the bank increased massively as a result of the wrongdoings.
The central bank appointed observer at the bank to save it from any
further corruption, the BB official said.
The BB official feared that the defaulted loans at the nine new banks might increase more in the coming days if the banks did not comply with the central bank’s rules while disbursing loans.
He said the central bank should give more attention to the new banks to compel them follow the rules and regulations so that the banks can avoid defaulted and classified loans.
The BB data showed that the overall defaulted loans in the banking sector rose to Tk 63,365.28 crore as of June 30, 2016 from Tk 51,371.22 crore as of December 31, 2015. 

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images