Within the monetary yr 2022-23, the defaulted loans of 10 banks, together with 4 state-owned banks, have elevated at an alarming charge. On the finish of June, the quantity of defaulted loans of 10 banks stood at Tk 69,671 crore, which is 45 % of the file defaulted mortgage of Tk 1,56,39 crore within the banking sector.
A yr in the past, the defaulted loans of those 10 banks had been 38.2 % of the whole loans.Based on the most recent knowledge of Bangladesh Financial institution, 86.65 % of loans disbursed by ICB Islami Financial institution had been in default until June 30, in comparison with 82.61 % in the identical interval final yr.
On the identical time, 62.66 % of the loans disbursed by the state-owned Primary Financial institution defaulted. When Sheikh Abdul Hai Bachchu was the chairman of this financial institution, there have been many irregularities. A yr in the past, the financial institution’s defaulted loans had been 58.86 % of disbursed loans.
On the finish of June, 50.49 % of Bangladesh Commerce Financial institution, owned by the S Alam Group, defaulted, which was 42 % a yr in the past.Bangladesh Improvement Financial institution, one other state-owned business financial institution, defaulted on 44 % of its disbursed loans, up from 36.07 % within the earlier yr.
Within the final one yr, the defaulted loans of the state-owned Janata Financial institution have elevated so much. On the finish of June, the financial institution’s complete defaulted loans stood at Tk 28,541 crore, which is 32.6 % of their complete loans. A yr in the past, 24.91 % of the financial institution’s complete loans had been in default.
Janata Financial institution Managing Director (MD) Abdul Jabbar informed this reporter at his workplace in Motijheel on October 2, ‘We try to get better defaulted loans. There are some issues, however nothing too dangerous is occurring.’
Officers of Janata Financial institution, who didn’t want to be named, stated the financial institution was unable to gather massive quantities of loans from some massive debtors, who had defaulted.
Subsequent is Agrani Financial institution. As of June, their defaulted loans stood at 23.51 % of complete disbursed loans, as towards 17.23 % in the identical interval final yr.
Officers of Agrani Financial institution, who didn’t want to be named, stated that lately, enormous quantity of loans have been sanctioned with out due consideration, resulting from which the financial institution’s non-performing loans have elevated.
Agrani Financial institution Managing Director (MD) Murshedul Kabir couldn’t be contacted on this regard. So his feedback will not be identified.AB Financial institution’s non-performing loans elevated to 18.61 % from 14.46 % within the earlier yr.Mercantile Bank’s NPL ratio stands at 8.3 %, which is 3.91 proportion factors larger than the earlier yr.
Rising Defaulted Loans Pose Challenges for Bangladesh’s Banking Sector
A senior official of Mercantile Financial institution stated on situation of anonymity that because of the withdrawal of the Central Financial institution’s relaxed coverage in the course of the pandemic, the non-performing loans of Mercantile Financial institution have elevated.He stated, now the debtors will not be displaying curiosity in repaying the mortgage utilizing the continuing financial state of affairs as an excuse.
The non-performing loans of Military-owned Belief Financial institution stood at 7.69 %, which was 3.48 % within the earlier yr.UCB’s defaulted loans elevated by 1.94 proportion factors to six.64 %.
Anis A Khan, former chairman of the Affiliation of Bankers Bangladesh, stated, ‘There are some willful defaulters who don’t have any intention of repaying their loans. Additionally some debtors are likely to divert cash to sectors not talked about within the mortgage proposal.’
