Staff Correspondent: According to Bangladesh Bank, the amount of bad loan is Tk 826.35 billion which is 84 per cent of the defaulted loan. There’s also another Tk 350 billion delinquent loan which has been abolished. Due to a court stay order, banks are unable to recover another 1.55 trillion.
Another Tk 1 trillion has been rescheduled.
Bank officials say that though profit falls due to default loan, they cannot recover the money since many defaulters are influential people.
At the end of 2011, default loan was Tk 226.44 billion. Till September 2018, default loan stands at Tk 993.7 billion.
According to rule, banks need to keep general provision against bad loans, which is 50 per cent for suspicious loans, 20 for low amount loan and 0.5 per cent to 5 per cent for general loans.
As per central bank, 12 banks are failing to keep the security reserve against default loans due to the liquidity crisis. Of these, four are government and 8 are private sector banks.
Specialists say that due to provision deficiency, investors and shareholders are facing danger because due to the cash crunch, the banks cannot give them profit.
On 19 December, during a bankers’ meet, Governor Fazle Kabir ordered the lowering of default loan below 10 per cent.
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