National Bank of Pakistan to close Sylhet branch

Staff Correspondent | Published: 22:09, Mar 07,2021

 
 

National Bank of Pakistan, a foreign commercial bank in Bangladesh, has secured regulatory approval to close one of its branches in Bangladesh.

The bank, headquartered in Karachi of Pakistan, have four branches in Bangladesh.

NBP-BD has received approval from the Bangladesh Bank and the National Bank of Pakistan’s head office to shut its branch located at Sobhanighat in Sylhet.

‘Closing operations in Sylhet is a strategic decision,’ a senior official of the bank told New Age on Sunday.

The branch was not yielding benefit for the bank in terms of deposit mobilisation, for what the branch was opened, he said, adding, ‘As a result, we have opted to close the branch’s operations.’

The bank’s move came in 13 years after its operation launch in Sylhet.

The Sylhet wing was opened as the bank’s third branch in April 2008.

In 1994, NBP-BD opened its first branch at Motijheel in the capital Dhaka. It opened the second branch in April 2004 at Agrabad in the port city Chattogram. The bank’s fourth branch is located at Gulshan in the capital.

The official of the bank said that loan defaulters or borrowers of the bank’s Sylhet branch would have to pay their loans through a collection account the bank opened with Bank Asia’s Sylhet branch adjacent to PBP-BD’s Sylhet branch.

He said that the deposits of the banks would be paid back on maturity through the banking channel upon submission of documents.

Bangladesh Bank data showed that the NBP-BD’s non-performing loans stood at 97.67 per cent of its outstanding loans as of December 31, 2020.

The volume of NBP’s defaulted loans stood at Tk 1,374.83 crore against its outstanding loans worth Tk 1,407.59 crore.

NBP has lodged over 140 cases in the last six years against different entities and individuals to recover the defaulted loans.

The bank after suffering from capital shortfall injected $10.9 million (around Tk 92.43 crore) in the year 2020 to get rid of the problem. As a result, its capital base increased to Tk 407 crore, helping the entity get rid of the capital shortfall.

NBP, having 78 employees in the country, recovered around Tk 33.5 crore in 2021 through the court proceedings, the official said.

Besides, the entity has also entered into discussions with its borrowers, who have defaulted on loan repayment, to expedite the loan recovery process, the official said.

As per the annual report of NBP-BD’s head office National Bank of Pakistan, NBP-BD incurred Tk 66.4 crore in net loss in 2019 while its net loss was Tk 41.5 crore in the previous year.

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