Basic Bank incurres Tk 361 cr net loss

Staff Correspondent: Basic Bank is one of the loss-making state-owned banks. Basic Bank’s loss amounted to Tk 361 crore. The bank has been asked to bring down its loss to Tk 400 crore in the current financial year.
An official from the finance ministry’s banking and financial institutions said Basic Bank was to reduce its losses by Tk 200 crore in six months. On the other hand, the bank has reduced its losses by Tk 129.46 crore in six months. At the end of last December, the bank’s loss stood at 360 crore 53 lakh. It is doubtful whether it will be possible to reduce the loss by Tk 400 crore by the end of the year as per the target.
According to sources, the five state-owned commercial banks have an annual operating profit target of Tk 3,060 crore for the current fiscal year 2021-2022. In contrast,
in the first six months of the financial year (July-December 2021), the total operating profit of five banks stood at 2,953.59 crore.
Four out of the six state-owned commercial banks are ahead in achieving the annual profit target for the first six months. Among the four leading banks, Agrani and Bangladesh Development Bank Limited (BDBL) have achieved higher operating profit than the annual target in just six months. The operating profit of the other two banks (Janata and Sonali) is higher than the half-year target. Rupali Bank is lagging behind in achieving its operating profit target.
In six months, the bank’s operating profit margin is only 32 percent of its annual target. Besides, Basic Bank failed to achieve its half-yearly target to reduce losses.
On the other hand, at the end of last December, the total loss-making branches of the six state-owned commercial banks stood at 121. Of these, Sonali Bank has 17 loss branches, Janata Bank has 39, Agrani Bank has 18, Rupali Bank has 9, Basic Bank has 26 and BDBL has 11 loss branches.
According to sources, Sonali Bank has achieved Tk 1,163 crore in six months against the target of operating profit of Tk 1,600 crore in the current financial year. This is 69 percent of the bank’s annual target. Earlier, Sonali Bank had earned an operating profit of Tk 1,225 crore during the same period of FY 2020-2021. As such, the bank’s operating profit in the first six months of the current financial year has declined over the previous year.
Janata Bank’s operating profit in six months stood at Tk 623.28 crore against the target of Tk 900 crore annual operating profit. This is 60 percent of the annual target. Earlier, Janata Bank had earned an operating profit of Tk 810.91 crore during the same period of 2020-2021 financial year. As such, the bank’s operating profit in the first six months of the current financial year has declined over the previous year.
Among other banks, Agrani Bank has achieved Tk 900 crore in six months against the annual operating profit target of Tk 720 crore. BDBL has achieved an operating profit of Tk 61.31 crore in six months against the target of operating profit.