Meeting on SOBs recapitalisation today

Staff Correspondent | Published: 00:05, Feb 14,2018 | Updated: 23:59, Feb 13,2018

 
 

The Financial Institutions Division is scheduled to review demands for budgetary fund from the state-owned banks in a meeting today.
Eunusur Rahman, secretary of the division, will preside over the meeting aimed at supplying recapitalisation or bailout fund for the capital starved state-owned commercial and specialised banks.
A senior official said that the division would urge finance division to give certain amount of money in favour of the banks from the allocation of Tk 2,000 crore kept in the current budget.
With the meeting, the process of releasing the budgetary fund would start, he noted.
Available data from the Bangladesh Bank showed that state-owned banks including scam-hit Sonali, BASIC and Janata were facing capital shortfall of Tk 15,830 crore until September.
Sonali is facing a capital shortfall of Tk 3,140 crore, BASIC Tk 2,523 crore and Janata Tk 1,273 crore.
Officials said the capital shortfall of Janata would increase following detection of loan scam of more than Tk 5,000 crore by lesser-known AtonTex in January.
Two specialised banks BKB and RAJUB- are facing capital shortfall of Tk 7,540 crore and Tk 743 crore respectively.
Critics have been criticising the repetition of providing bailout of funds especially to scam-hit banks saying that the tax payers’ money was being put in black holes.
According to budgetary document, the government gave Tk 14,655
crore to bail out state-owned banks including scam-hit BASIC Bank and Sonali Bank in eight years between 2010-2011 and 2016-17.
A total of Tk 11,487 crore or 78 per cent of the subsidy, which the government calls recapitalisation fund, was given in the past four financial years between 2013-14 and 2016-17.
Major portion of the allocation in the past four fiscals went to largest state-owned Sonali Bank and once profit-making BASIC Bank as bailout fund after both the banks were hit hard by loan scams.
The two banks received Tk 6,095 crores in past four fiscal years. 

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