The defaulted loans in the banking sector rose further by Tk 738.94 crore in the second quarter (April-June) of this year taking the total defaulted loans to Tk 11,976 crore in the first six months of the year.
The total defaulted loans, excluding the loans that have been written off, stood at Tk 74,148 crore as of June 30 this year, according to the latest Bangladesh Bank data.
With the written off loans, the total defaulted loans would surpass Tk 1,12,000 crore as of June 30, 2017.
The classified loans, without write-offs, were Tk 73,409 crore as of March 31, 2017 and Tk 62,172.32 crore as of December 31, 2016.
An expert and Bangladesh Bank officials said that the large amount of defaulted loans had created a vulnerable situation for the country’s banking sector as the non-performing loans continued rising.
The central bank will have to contain the rising trend in the classified loans at any cost in the greater interest of the country’s banking sector, otherwise the whole financial sector would plunge into a crisis in the months to come, they said.
BB officials said that the amount of defaulted loans had increased significantly after the end of June compared with that in the same period a year ago.
The defaulted loans stood at Tk 63,365 crore as of June 30, 2016.
The classified loans stood at 10.13 per cent of the total outstanding loans of Tk 7,31,625.75 crore in the banking sector as of June 30, 2017. The defaulted loans were 10.53 per cent of the total outstanding loans of Tk 73,409.05 crore as of March 31, 2017.
A BB official told New Age on Thursday that the commercial banks usually tried to decrease the defaulted loans in the second quarter and in the last quarter of a year with a view to showing robust net profits in their balance sheets.
For this reason, the amount of defaulted loans did not increase much in the second quarter, but the figure might increase significantly in the third quarter (July-September).
Former BB governor Salehuddin Ahmed told New Age on Thursday that the central bank should take initiative to contain the defaulted loans as the classified loans continued to increase in recent years.
Some businesspeople enjoying political connection are reluctant to repay their loans to banks, which has created a dangerous situation for the financial health of the banks, he said.
‘The central bank could not recover the defaulted loans through requesting verbally the habitual defaulters. The BB should take stern action against them to recapture the disbursed loans,’ he said.
The BB data showed the defaulted loans in the six state-owned banks — Sonali, Janata, Agrani, Rupali, BASIC and Bangladesh Development Bank — decreased to Tk 34,580 crore as of June 30 from Tk 35,716 crore as of March 31, 2017.
The non-performing loans in the private commercial banks rose to Tk 31,728 crore from Tk 29,727 crore.
The defaulted loans in the two specialised development bank — Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank —
decreased to Tk 5,518.84 crore from Tk 5,684 crore.
The defaulted loans in the nine foreign commercial banks increased to Tk 2,320.71 crore as of June 30 from Tk 2,282 crore as of March 31 this year.
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