Reforming banking sector will bring a win-win situation: Kamal

The recent initiatives for reforms in the banking sector, like the special facilities of rescheduling default loans and fixing the lending rate, will create a win-win situation for all the banks and the borrowers.

Finance Minister AHM Mustafa Kamal made this comment on Tuesday at the annual business conference of the Padma Bank on its 1st anniversary of rechristening from the Farmers Bank.

At the programme Kamal said, "Fixing lending rate in an open market economy gives rise to questions, but I think prevention is better than remedy."

Recently the finance minister said all banks have to bring down their lending rate to 9 percent and deposit rate to 6 percent by April 1 this year.

At the programme Padma Bank Managing Director Ehsan Khasru said his bank has been trying to drop the deposit rate to 6 percent, but the depositors have started letters to encash their deposits. It may put the bank in a difficult situation.

During the discussion, the finance minister has suggested the Padma Bank to get listed in the capital market as fast as possible, because all the parameters of the bank are positive.

At the event, Chairman of the Padma Bank Chowdhury Nafeez Sarafat said, "We are trying to make this bank the most trusted bank in our country."

All the directors of Padma Bank were present at the event and wished a quick turnaround for the bank from severe irregularities of their predecessors.