Bangladesh Bank on Tuesday asked the eight state-owned banks to bring down defaulted loans.
The central bank gave the instruction at a meeting held at the BB headquarters in Dhaka. BB governor Fazle Kabir presided over the meeting.
Financial Institutions Division senior secretary Md Ashadul Islam, BB deputy governors SM Moniruzzaman and Ahmed Jamal, executive directors SM Rabiul Hassan and Md Serajul Islam, managing directors of seven SCBs were present, among others, at the meeting.
Non-performing loans in six state-owned banks — Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Development Bank and BASIC Bank — constitute 48.6 per cent of the total defaulted loans in the country’s banking sector.
The amount of defaulted loans in the state-owned banks increased by Tk 5,183.58 crore to Tk 53,879.45 crore at the end of March, 2019 from Tk 48,695.87 crore three months ago. The amount of NPLs in two specialised state-owned banks — Rajshahi Krishi Unnayan Bank and Bangladesh Krisi Bank — was Tk 4,787.64 crore at the end of March this year.
The amount of overall defaulted loans in the country’s scam-hit banking system skyrocketed to Tk 1,10,873.54 crore at the end of March, 2019.
At Tuesday’s meeting, Kabir and Ashadul expressed their dissatisfaction over the defaulted loan situation in the SOBs.
Serajul, who is also the BB spokesperson, said that the BB governor inquired the state-owned banks’ top executives why the defaulted loans increased so much as of March this year.
Kabir also asked the banks to reduce defaulted loans by boosting defaulted loan recovery, Serajul said.
SOBs’ managing directors assured that they would reduce the amount of defaulted loans in the June quarter, he added.
Managing director of a state-owned bank said that the non-performing loans in the country’s banking sector usually increased in the first quarter of every year.
The figure would decrease in the June quarter, he hoped.
Of the total non-performing loans in the country’s banking system, private commercial banks hold 45.05 per cent, specialised banks 4.32 per cent and foreign commercial banks 2.04 per cent.
The amount of NPLs in private commercial banks stood at Tk 11,810.09 crore and in foreign commercial banks at Tk 2,256.51 crore.
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