• Friday, Jan 28, 2022
  • Last Update : 03:32 am

Banks to form special cell to monitor top defaulters

  • Published at 09:07 pm July 7th, 2019
loan default
Bigstock

The central bank is going to hold a meeting with eleven banks and related department of the central bank on Monday to finalize the policy

Banks will form a special cell for monitoring their top defaulters having defaulted loans above Tk100crore in a bid to bring down the volume of bad loans in the sector, according to a draft policy of Bangladesh Bank (BB).

The central bank is going to hold a meeting with eleven banks and related department of the central bank on July 8 to finalize the policy. 

A circular about the policy will then be sent to the chief executives of the banks concerned.

BB’s Banking Regulation and Policy Department (BRPD) will organize the meeting. AKM Ehsan, deputy general manager of BRPD, will chair the meeting.

In March this year, the central bank started working to strictly monitor the top defaulter companies in the banking sector. Recently, the bank sent a letter to different banks asking for more suggestions about the types of initiatives against top defaulters with defaulted loans above Tk100crore.

Banks having a huge volume of defaulted loans have been told to attend this meeting. Eleven banks with four state-owned Sonali, Rupali, Agrani, Janata  would participate in the meeting, said a senior BB official. 

Earlier, Bangladesh Bank (BB) had warned seven banks to reduce their soaring defaulted loans. The seven banks are Sonali, Janata, Agrani, Rupali, National Bank, Islami Bank Bangladesh and Al Arafah.

According to the BB latest data, the non-performing loans (NPLs) of banks rose by a staggering Tk16,962 crore in a period of three months till March this year, increasing the amount of stress loan in the banking sector to Tk1,10,873.54crore, which is the largest ever in the country's history

The bad loan amount was 11.87% of total disbursed loans in the given month, according to the latest Bangladesh Bank (BB) data.

Former Bangladesh Bank governor Salehuddin Ahmed said: “The policies adopted recently by the government and the central bank for banking sector went in the wrong direction. The defaulters were given leverage by these policies. Good borrowers are now feeling discouraged to pay debts.”

The central bank must go tough to reduce the defaulted loans and all the facilities extended to the defaulters should be scrapped, he suggested.

In June this year, Finance Minister AHM Mustafa Kamal revealed the names of the top 300 loan defaulters in the parliament. The top 300 loan defaulters have defaulted loan of Tk50,942 crore at banks. 

The finance minister also provided a list of 14,617 individuals and institutions who have outstanding loans of over Tk five crore since 2009.

These individuals and institutions have sanction limit of Tk1,741,348 crore, outstanding loan of Tk784624 crore, classified amount Tk110541 and defaulted loan Tk100,183 crore.

50
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail