Banks, financial institutions asked to initiate process to recover default loans
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Monday
August 08, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
MONDAY, AUGUST 08, 2022
Banks, financial institutions asked to initiate process to recover default loans

Economy

UNB
08 July, 2019, 11:40 am
Last modified: 08 July, 2019, 01:14 pm

Related News

  • Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 
  • New loan rescheduling policy will bring banks under accountability: Bankers
  • Bangladesh Bank and DNCC honour bKash
  • Loan rescheduling: Banks can’t show interest as income without recovering principal
  • Exporters can encash proceeds of value added portion in 15 days

Banks, financial institutions asked to initiate process to recover default loans

The Financial Institution Division of the Finance Ministry has recently given this directive to the banks while holding a meeting with the top executives of the specialised banks.

UNB
08 July, 2019, 11:40 am
Last modified: 08 July, 2019, 01:14 pm
Banks, financial institutions asked to initiate process to recover default loans

The government has directed the specialised banks and financial institutions to work out their plans to recover money from all loan defaulters.

The Financial Institution Division of the Finance Ministry has recently given this directive to the banks while holding a meeting with the top executives of the specialised banks.

According to sources at the Financial Institution Division, the top executives of Bangladesh Krishi Bank, Karmasangsthan Bank (Employment Bank), Ansar VDP Bank, Rajshahi Krishi Unnayan Bank, Bangladesh House Building Finance Corporation, Prabashi Kalyan Bank, Investment Corporation of Bangladesh (ICB) and Palli Sanchay Bank were present at the meeting.

The meeting asked the specialised banks and financial institutions to increase their rate of recovery from the written-off loans and take effective steps for disposing of audit objections.

The amount of written-off loans in the eight specialised banks is Tk 621 crore, with Bangladesh Krishi Bank being at the top with Tk 221 crore.

The amount of ICB’s written-off loan is Tk 263 crore followed by Tk 222 crore of Bangladesh Krishi Bank and Tk 127 crore of Rajshahi Krishi Unnayan Bank.

Besides, the amount of money involving audit objections in these eight banks is Tk 10,924 crore.

Default loans of six state banks rise alarmingly

The meeting also placed an outline for the specialised banks and financial institutions for realising money from their classified and non-classified loans.

It said the Bangladesh Krishi Bank realised Tk 1489 crore less from its target while realising money from default and normal loans. The amount is Tk 457 crore less at Palli Sanchay Bank while Tk 125 crore at Rajshahi Krishi Unnayan Bank, Tk 99 crore at Ansar VDP Bank, Tk 220 crore at Bangladesh House Building Finance Corporation and Tk 761 crore for the ICB.

The meeting was informed that the number of internal and commercial audit objections of the Bangladesh Krishi Bank is 6,668 which involves Tk 6,854 crore.

The amount of money at Rajshahi Krishi Unnayan Bank is Tk 1,763 crore against 4,022 audit objections.

Banks to be asked to slash classified loans

The amount of money against audit objections of ICB is Tk 1,680 crore while that of Bangladesh House Building Finance Corporation Tk 315 crore, Prabashi Kalyan Bank Tk 188 crore, Ansar VDP Bank Tk 83 crore and Karmasangsthan Bank Tk 40 crore, according to the sources.

Meanwhile, Finance Minister AHM Mustafa Kamal recently placed in Parliament a list of 300 top loan defaulters of the country involving Tk 50,942 crore.

He said these loan defaulters took loans from all banks and financial institutions of the public and private sectors.

Mustafa Kamal mentioned that the outstanding amount of these loan defaulters is Tk 70,571 crore while the classified amount is Tk 52,837 crore.

The top 10 defaulters on the list are Samannaz Super Oil Ltd (Tk 1,049 crore), Galaxy Sweater and Yarn Dyeing Ltd (Tk 984 crore), Rimex Footwear Ltd (Tk 976 crore), Quantum Power Systems Ltd (Tk 828 crore), Maheen Enterprise Ltd (Tk 825 crore), Rupali Composite Leather Wear Ltd (Tk 798 crore), Crescent Leather Products Ltd (Tk 776 crore), SA Oil Refinery Ltd (Tk 707 crore), Suprov Composite Knit Ltd (Tk 610 crore) and Grameen Shakti (Tk 601 crore).

Mustafa Kamal also disclosed a list of borrowers who took more than Tk 5 crore from all banks, having outstanding amount of 5 crore and bellow.

The list shows that some 14,617 individuals and institutions took loans of Tk 1,741,348 crore since 2009 while Tk 100,183 crore got defaulted.

The Finance Minister said the number of loan defaulters in September 2015 was 111,954 involving Tk 59,105 crore while it increased to 170,390 with Tk 102,315.19 crore in December 2018.

Kamal also said state-owned commercial and specialised banks waived the interest to the tune of Tk 1198.24 crore last year against 6163 loans.

Agrani Bank Ltd waived the highest amount of Tk 494 crore against 2008 loans while Bangladesh Krishi Bank Tk 435 crore against 66 loans, Rupali Bank Ltd Tk 134 crore against 203 loans, Sonali Bank Ltd Tk 73 crore against 14 loans, Janata Bank Ltd Tk 54 crore against 2473 loans, Rajshahi Krishi Unnayan Bank Tk 4.35 crore against 1380 loans and BASIC Bank Ltd waived Tk 1.69 crore against 19 loans.

Bangladesh Development Bank did not waive any interest during the period.

Top News

loan / Bangladesh Bank

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • A unique exchange rate regime
    A unique exchange rate regime
  • File Photo of Bangladesh Bank : Salahuddin Ahmed/TBS
    Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 
  • PM sketches Bangmata's key-shadow role in independence struggle
    PM sketches Bangmata's key-shadow role in independence struggle

MOST VIEWED

  • July remittance hits two-year high
    July remittance hits two-year high
  • Bangladesh to resume talks for Ukrainian wheat import
    Bangladesh to resume talks for Ukrainian wheat import
  • Strong dollar will be a harbinger of hard times for much of the rest of the world. Photo: Reuters
    Dollar rate for LC settlement hits record high of Tk109
  • Unstable dollar, power disruptions see industries pinching pennies
    Unstable dollar, power disruptions see industries pinching pennies
  • Central bankers’ refusal to embark into ‘hard helicopter money’ experiment have been a good idea. Photo: Reuters
    Dollar price for LC settlement rising despite fall in kerb market
  • Representational image. Picture: Collected
    Gold prices soar by Tk1,954 per bhori

Related News

  • Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 
  • New loan rescheduling policy will bring banks under accountability: Bankers
  • Bangladesh Bank and DNCC honour bKash
  • Loan rescheduling: Banks can’t show interest as income without recovering principal
  • Exporters can encash proceeds of value added portion in 15 days

Features

Photo: BSS

Begum Fazilatunnessa Mujib . . . woman of moral power

5h | Thoughts
Will Glass Cosmetics be your next skincare holy grail?

Will Glass Cosmetics be your next skincare holy grail?

9h | Brands
Akij Tableware: More than just dishes on a table

Akij Tableware: More than just dishes on a table

10h | Brands
Deeply depressed and afraid of living in total darkness, the Noakhali-based housewife Rasheda desires nothing but to get her vision back. Photo: Noor-A-Alam

Blind people need 25,000 corneas. Sandhani gets around 25

11h | Panorama

More Videos from TBS

What caused the Megalodon to go extinct?

What caused the Megalodon to go extinct?

1h | Videos
92nd birth anniversary of Bangamata Fazilatunnesa Mujib today

92nd birth anniversary of Bangamata Fazilatunnesa Mujib today

2h | Videos
Challenges the world will face after 10 years

Challenges the world will face after 10 years

5h | Videos
Ukraine-Russia war at new stage, fear of nuclear radiation increasing

Ukraine-Russia war at new stage, fear of nuclear radiation increasing

6h | Videos

Most Read

1
Diesel price hiked by Tk34 per litre, Octane by Tk46
Energy

Diesel price hiked by Tk34 per litre, Octane by Tk46

2
Housing projects sprouting up by Dhaka-Mawa expressway
Real Estate

Housing projects sprouting up by Dhaka-Mawa expressway

3
July remittance hits two-year high
Economy

July remittance hits two-year high

4
Infographic: TBS
Banking

Dollar rate will be left to market after two months: Governor

5
Bangladesh to resume talks for Ukrainian wheat import
Economy

Bangladesh to resume talks for Ukrainian wheat import

6
A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. REUTERS/Issei Kato/File Photo
Energy

Summit proposes long-term LNG supply to Petrobangla

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net