Home Bank & Finance 63 pc of defaulted loans with 10 banks
Bank & Finance - November 24, 2023

63 pc of defaulted loans with 10 banks

Staff Correspondent: There are now 61 banks in the country. However, more than 63 percent of the total non-performing loans of the entire banking sector are in 10 banks. The list includes five private and five government banks. Once upon a time only the bad condition of government banks was discussed. Now private banks are also being discussed. Basically, this discussion is due to various reasons, including allegations of fake and benami loans from some banks.
According to Bangladesh Bank, Janata Bank’s non-performing loans have decreased by Tk 11,000 crore compared to the previous quarter. As a result of this, the default loan situation of the entire banking sector is improving. However, defaults of most banks have increased. In the overall banking sector, defaulted loans decreased by Tk 642 crore to Tk 1 lakh 55 thousand 397 crore at the end of September. Which is 9.93 percent of the total debt. The non-performing loans of government commercial banks decreased by Tk 8,657 crore to Tk 65,797 crore. Which is 21.70 percent of the total loans of these banks. And the defaulted loans of private sector banks increased by Tk 7,083 crores to Tk 81,537 crores.
Who is at top?
Those who default more in quantity, not in percentage or rate. Janata Bank’s non-performing loans have come down by more than Tk 11,500 crore, but the bank is still at the top in terms of volume. At the end of last September, Janata’s defaulted debt stood at Tk 17,001 crore.
Agrani Bank, which is in the second position in terms of amount, has defaults of Tk 16,874 crores. Sonali has Tk 13,993 crores, National Tk 13,515 crores and Rupali Tk 8,729 crores of defaulted loans respectively. Apart from this, Basic Bank in the list of top 10 banks has Tk 8,209 crores, Islami Bank Bangladesh Tk 7,084 crores, AB Bank Tk 5,941 crores, Padma Bank Tk 3,673 crores and UCB has Tk 3,325 crores of bad loans.
Although there are more defaulters in these banks in terms of quantity, National Bank of Pakistan is the largest defaulter in terms of percentage. As of last September, 98.18 percent of the bank’s total loans are in default. ICB Islamic Bank 87.02 percent, Basic Bank 64.55 percent, Padma Bank 63.73 percent, Bangladesh Commerce 60.09 percent, BDBL 44.22 percent, National Bank 31.98 percent, Agrani Bank 24.03 percent, Rupali Bank 20.70 percent and Rajshahi Agricultural Development Bank 19.95 percent defaulted.
Bankers said that many banks are facing a crisis of dollars as well as money. Because, against the sale of dollars, money is coming from the market. Again, due to high inflation the saving power of people has decreased. Apart from this, a part of the loan is withheld due to various reasons including court cases. This reduced the flow of money. At the same time many have withdrawn their deposits from some banks due to lack of confidence. As a result, some private sector banks have been failing to meet the statutory cash reserve (CRR) and statutory liquidity reserve (SLR) for many days. Some banks are not even in a position to pay the penalty imposed for failure. On the contrary, the central bank is lending in various ways to sustain the banks.
National Bank on top of provision deficit
Over Tk 28,754 crore security (provision) shortfall has occurred in 9 banks of public and private sector. National Bank is at the top of the deficit. At the end of last September, the bank had a deficit of Tk 13,790 crores. The bank is extremely bad due to various frauds, irregularities and corruption. The second position in the list is the basic deficit of Tk 4,748 crores. Agrani Bank Tk 4,600 crores, Rupali Tk 4,198 crores, Bangladesh Commerce Bank Tk 542 crores, Dhaka Bank Tk 399 crores, NCC Bank Tk 335 crores, Standard Bank Tk 234 crores and Madhumoti Bank’s provision deficit is Tk 90 lakhs.

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