Defaulted loans stood Tk 5476.72 cr
Md Joynal Abedin Khan : Country’s 4th generation banks are facing severe difficulties to operate their banking business accordingly for maintaining the higher non-performing loans (NPLs). At the same time, due to the negative impact of the default loan, the fourth generation banks are forcing to disburse lower fresh loans among the stakeholders of the private sector, hindering the steady growth of the country.
The fourth generated nine banks are facing deep crisis as the amount of default loans is gradually increasing due to multifarious reasons including widespread corruption, financial irregularities and aggressive banking policy through ignoring the prescribed rules and regulations of the central bank.
However, the amount of defaulted loans of the nine banks reached around Tk 5,476.72 crore till June this year while the surged volume was Tk 224.2 crore in last six months and Tk 448.5 crore in last one year respectively, reports a data of Bangladesh Bank (BB).
It also showed that the sum of defaulted loans of the banks was Tk 5,252 crore in the first half (from July to December)of the fiscal year 2019-2020 and hiked of the total amount of default Tk 224 crore.
Even the total amount of the defaulted loans of the banks was Tk 5,028.22 crore in the whole year till June 2019 and surged amount was Tk 448.50 crore in the year, it mentioned.
The BB also reports, the Padma Bank (Ex-Farmers Bank) obtained the top position among the defaulted nine banks and the amount of defaulted loans of the financial institute was Tk 3,709.41 crore in the last fiscal yeartill June 30 in 2019 while the sum of defaulted money was Tk 3,989.88 croe till December of the last year.
Union Bank Ltd got the second rank in defaulted scale with the amount of Tk 547.77 crore till June this year and the amount of defaulted loan was Tk 258.17 crore till December last year.
South Bangla Agriculture and Commerce Bank Ltd gained the third position for defaulted loan along with Tk 309.63 crore till June this year while the amount was Tk 248.65 crore till December last year.
The defaulted loan of Meghna Bnak Ltd was244.27 crore in the last fiscal year while the sum of the amount was Tk 248.67 crore till December of the last year.
The NRB Commercial Bank Ltd stood the fifth position in ranking of defaulted loan in the last financial year with Tk 205.53 crore and it was Tk 129.54 crore in the last six month of 2019. Also the NRB Global Bank Ltd’sdefaulted loan was 150.47 crore in the last fiscal year and it was Tk 146.16 crore in the fiscal year 2018-2019.
The defaulted loan of NRB Bank Ltd was149.49 crore in the last fiscal year and the amount was Tk 98.57 crore in the financial year 2018-19.
Modhumoti Bank Ltd’s defaulted loan was Tk 89.61 crore till June this year and the amount was Tk 76.13 crore till December last year.
The defaulted loan of Bidland Bank Ltd was Tk 70.55 crore in the last fiscal year while the amount was Tk 56.93 crore till December of the last year.
The defaulted loan of money of banks was Tk 96,117 crore in the last fiscal year while such loan was Tk 3,606 crore that stated 9.03 per cent of the total amount of the distributed loan, the BB report mentioned.
Also the total distributed loans of money of banking sector was Tk 10,49,725 coroe till the fiscal year (2019-20) and the defaulted loans was Tk 96,116 core that 9.16 per cent of the gross loans in banking sector, it showed.
Even the central bank of the country has given some facilities to lenders as the economy hit by standoff due to coronavirus pandemic. Nobody will be enlisted as loan defaulter if he or she failed to pay the loan till September this.
Earlier, being instructed the government, the BB announced rescheduled for public-discount for loan paid facilities for 10 years with the one year grace period through two per cent down pay system as banks to decrease the default loans.
The defaulted loan in the country’s banking sector is increasing day by day not to ensure the good governance in the sector, experts said.
Asked about the rising trend of the defaulted loans despite assurance from the high-ups in containing defaulted loans, Policy Research Institute executive director Ahsan H Mansur said that there was no sign of even ensuring good governance and it remained the core reason behind the rising trend of defaulted loans.
Besides, the fresh government initiative to allowing rescheduling default loans with just 2 per cent down payment has worked as a stimulus for the bad borrowers, the executive director said, adding that such facility would also create scope for the defaulters taking fresh loans by repaying a tiny amount of their outstanding loans as down payment.
Under the package defaulters were allowed to reschedule loans for 10 year inclusive of one-year grace period with just 2 per cent down payment, following which overall loan recovery slowed down, he added.
Seeking the anonymous, a high official of Bangladesh Bank said that lax monitoring of the central bank coupled with aggressive lending by the banks and their tendency to violate regulations, for their dismal performance, weighing on the entire banking sector heavily.
Dr Salehuddin Ahmed, former governor of Bangladesh Bank said that the financial of the fourth generation banks are deteriorating mainly for raising the financial irregularities and widespread corruption.
Still, the family members of the high-ups of the bank are holding the position of directors which is hindering the regular operational procedure, he observed.
“The outcome of these banks is not praiseworthy, so, it is crucial to bring them under a unique policy for getting higher outcome for country’s economy”, he added.