Md Joynal Abedin Khan: The report mismatch on the non-performing loans (NPLs) of public banks is encouraging the habitual defaulters to conduct financial irregularities, posing serious threat to revamp business and economic activities concentrating the adverse impact during the virus pandemic.
The disclosed reports of Bangladesh Bank and the Banking and Financial Institute Division under Finance Ministry are differing information, which is indicating that the authorities concerned have no coordination for updating data of financial inclusion and exclusion including the NPLs. Such careless approach is encouraging the willful defaulters to implement their vested interest from the public banks, said experts.
Actually, the public banks are holding the lion share of the default loan in the banking sector, impeding the steady growth of the country. The state-owned commercial banks (SoCBs) is holding Tk 41,583 crore NPLs as on June this year against the total default loans amounting at Tk 96,116 crore, said the finance minister AHM Mustafa Kamal recently in the parliament.
The default loan amount of Sonali Bank is Tk 8,467 crore, followed by Tk 15,974 crore in Janata Bank, Tk 5,338 crore in Agrani Bank, Tk 4,090 crore in Rupali Bank, Tk 7,156 crore in BASIC Bank and Tk 558 crore in Bangladesh Development Bank which is representing over 43 percent of the total default loans in the country’s banking sector.
In October last, the public banks disclosed in a meeting in presence of BB governor Fazle Kabir that the default loans of Sonali Bank is Tk 9088 crore while it is Tk 13,299 for Janata Bank, Tk 5,481 crore for Agrani Bank and Tk 4,044 crore for Rupali Bank, according to the minister.
On the other hand, Banking and Financial Division data revealed that the default loan of the banking sector is Tk 42,124 crore. Of the total defaulted amount, Sonali Bank is holding Tk11,199 crore followed by Tk 14,600 crore by Janata Bank, Tk 6,643 crore for Agrani Bank, Tk 4,615 crore for Rupali Bank, Tk 7,895 crore for BASIC Bank and Tk 766 crore for DBBL.
However, the data mismatch also found in FY 2018-19 when the Banking Division disclosed that the default loans of the public banks was Tk 55,109 crore, but the central bank data revealed that it was Tk 53,745 crore.
However, the above data is clearly depicted that the actual default loans of the public banks is higher from the central bank data. Banking sources said, the public banks are providing highest facilities to the big borrowers and they are becoming defaulter. After becoming loan defaulter, the large stakeholders are availing the loan rescheduling and write-off and so on.
Former Bangladesh Bank Deputy Governor Ibrahim Khaled predicted that the amount of default loans is higher from the central bank data. Actually, public banks are holding the lion share of the default loans in the banking sector.