Outstanding bank loan Tk 5.5 trillion

Staff Correspondent: The defaulted loans in the banking sector stood at Tk 1 lakh 45 thousand 633 crore in December. Which was Tk 42 thousand 715 crore ten years ago. If we add bad loans with rescheduled loans, it stands at Tk 3 lakh 77 thousand 922 crores. And against 72,543 cases in the money debt court, if we add the unpaid debt of Tk 1 lakh 78 thousand 287 crore, the total amount of unpaid debt stands at Tk 5 lakh 56 thousand 209 crore (Tk 5.56 trillion).
Executive Director Fahmida Khatun of Center for Policy Dialogue (CPD) gave this information recently.
Fahmida Khatun said that one of the main determinants of the health of the banking sector is the non-performing loans.

The amount is gradually increasing. There has been a lot of leakage of good governance, accountability and transparency in this sector. Due to that leakage, the banking sector is still not able to turn around.
Despite many ups and downs, the banking sector has expanded.
Stating that the size of the economy of Bangladesh is growing, she further said that investment is needed to advance the size of this economy. The role of financial sector is very important for investment and transactions of common people. We only discuss the banking sector, the non-banking sector is also a problem.
Fahmida Khatun, the executive director of the organization, claimed that since the change of ownership, Islamic banks are in financial crisis and said that such a situation has arisen due to various irregularities in these banks. Most banks do not disclose the information. She also doubted the truth of the information being published.
All indicators have deteriorated due to widespread irregularities in Islamic banks, she said, adding that with the change of ownership, the financial situation of these banks has worsened. Common people are trusting the banking sector as there is no alternative. However, CPD also feels that consumer confidence in the sector is waning as the financial situation worsens.
This top official of CPD said that banks’ excess liquidity has increased in the last few years, but their cash holdings have decreased. Because of this, the banks are suffering from money shortage.
Prof. Mostafizur Rahman claimed that all the information of the banks is not being disclosed to the public and said that those who do not disclose, they cannot fulfill their goals. As much as is revealed, considerable doubt remains. Another issue is the gradual closing of the door to information. We used to depend on media for information, that is also going away.
He fears that the wrong policy may be adopted due to lack of information. He said, if the banking sector has to be pulled out of this situation, political decisions should be taken from the highest level and transparency and accountability should be ensured.
Because in the past we have seen the privatization of profits and the nationalization of losses. Regarding the merger of weak and strong banks, CPD says that many times money has been given by the government to revive public sector banks. Especially state-owned banks are repeatedly given. Only private banks such as Padma Bank have been tried to be pulled out, but they have not been saved.
In such a situation, initiatives have been taken to try to recover with government institutions. If this process is to be taken forward, bring in the world’s reputed assessment company on a competitive basis. However, considering the banking health of Bangladesh, whether they will be interested is a big question.