Bangladesh Bank on Tuesday criticised the performances of four state-owned commercial banks as the indicators related to their defaulted loans, required capital and credit recovery from top 20 defaulters deteriorated significantly in recent times.
The BB asked the four banks — Sonali, Janata, Agrani and Rupali — to speed up their recovery process of defaulted loans as non-performing loans in the banks continue to increase due to their loan disbursement defying the rules and regulations.
The BB also asked the banks not to disburse large loans as such type of credit usually creates risky situation, a BB official told New Age on Tuesday.
The BB asked the banks to pay more attention to disbursing SME and farm loans, he said.
The central bank also asked the banks to improve their client service due to their lower performance offering the banking services to the people, the official said.
The BB expressed its disappointment over the banks’ health and made the suggestion at a regular meeting of signing memorandum of understanding between the central bank and the state-owned banks at the BB headquarters in the capital.
BB governor Fazle Kabir attended the meeting while the managing directors of the banks were present.
The BB arranges the MoU meeting in every three months to supervise and monitor the banks’ financial health.
The central bank asked the banks to strengthen their capital base through recovering the classified loans, the official said.
The capital shortfall of Sonali Bank stood at Tk 2,619 crore as of June 30, 2017 and that of Rupali Bank at Tk 740.58 crore, the BB data showed.
Janata Bank and Agrani Bank, however, kept their required minimum capital in the second quarter, but their capital base is yet to reach as expected.
The BB asked the banks to strengthen their programmes for cash recovery from the top 20 defaulters as non-performing loans amounting to Tk 9,103 crore were now stuck in the top defaulters of the SCBs.
The BB data showed that the top 20 defaulters of Sonali Bank had faced classified loans amounting to Tk 3,484 crore, Janata Bank Tk 2,218 crore, Agrani Bank Tk 1,169 crore and Rupali Bank Tk 2,232 crore.
The BB data showed that overall defaulted loans in the four banks stood at Tk 26,426 crore as of June 2017 which was 23.15 per cent of their total disbursed loan of Tk 1,12,418 crore.
As of June, Sonali Bank faced defaulted loans amounting to Tk 11,421 crore while Tk 5,340 crore such loans was faced by Janata Bank, Tk 4,904 crore by Agrani Bank and Tk 4,760 crore by Rupali Bank.
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