They take full advantage of relaxed loan reschedule policy
Four state-owned commercial banks have reduced their non-performing loans (NPL) by 35% in the year 2013, taking advantage of the relaxed loan rescheduling opportunities extended by Bangladesh Bank.
The four state-owned banks have rescheduled the loans worth Tk5,768 crore at the fag end of the just concluded year.
Bangladesh Bank had relaxed the loan rescheduling rules in December 2013 to facilitate the businessmen affected by political unrest and help the banks to reduce their NPL rates in their balance sheets.
The total NPL of the state-owned commercial banks reduced by Tk8,866 crore to Tk16,616 crore in last year from Tk25,482 crore in 2012.
The defaulted loans of the banks basically decreased due to the huge amount of loan rescheduling, according to a Bangladesh Bank report.
Sonali Bank rescheduled Tk1,746crore in 2013 as compared to Tk453 crore in 2012 while Janata Bank rescheduled Tk1,109 crore as compared to Tk106 crore, Agrani Bank Tk854 crore as compared toTk166 crore and Rupali Bank Tk2,059 crore as compared to Tk601 crore.
The classified loans of the banks have, however, been reduced due to the given rescheduling facilities. But it is a simple accounting concept, not a theoretical one, former Bangladesh Bank Governor Dr Salehuddin Ahmed told the Dhaka Tribune.
“Banks can provide loan rescheduling facilities to the really affected businessmen considering their conditions, but if the facility remains open for all, the incentive would be misused by the corrupt people in the banking sector.’’
Dr Ahmed termed the loan rescheduling decision an irrational one as it is nothing but just to recapitalise the state-owned banks, which are already indulged in corruption, from the public money.
Not only the country’s financial sector, but also the overall economy has already witnessed a setback in absence of accountability and transparency in this sector, he said.
Ending a long continued up trend in default loans, the country’s banking sector witnessed a substantial fall in non-performing loans (NPL) by around 4% or Tk16,137 in the last quarter (October-December) from the previous quarter of 2013, because of the relaxed rules on loan rescheduling offered by the central bank.
Bangladesh Bank alsoitself skeptical about recovering loans from the rescheduled accounts as a result it took decision on February 19 to strictly monitor the loan accounts rescheduled under a relaxed policy given on excuse that business was affected by the prolonged political unrest.
“We had relaxed the rules due to the political unrest and banks were also relieved of the NPL burden by taking advantage of the relaxed rules,” Deputy Governor SK Sur Chowdhurysaid, but warned the central bank would monitor the loan accounts to see whether those were following the terms and conditions of the relaxed rules.
Banks will have to ensure that the installments of the accounts are being paid in accordance with the terms and conditions, he said.
According to the report, maintained provision of some banks became excess then the required provision in the balance sheet of last year mainly due to massive deduction of NPL amount.News:Dhaka Tribune/6-Mar-2014
Islami Bank Bangladesh Limited (IBBL) received Gold Medal for its outstanding contribution to the foreign remittance services of Bangladesh.
Bangladesh Bank Governor Dr. Atiur Rahman, on behalf of Centre for NRBs, handed over the award to Mohammad Abdul Mannan, Managing Director, IBBL at a function at Sonargaon hotel in Dhaka on Tuesday, said a press release.
US Ambassador in Bangladesh Dan W. Mozena, Ambassador of European Union William Hana, FBCCI President Kazi Akramuddin Ahmed,
former Bangladesh Bank Governor Dr. Farashuddin and former Deputy Governor Khondokar Ibrahim Khaled were present on the occasion as special guests.
IBBL also received “Branding Bangladesh Award” for its great contribution in branding Bangladesh across the globe.
The programme was arranged for the newly-recruited officers of the bank, said a press release.
Jagadish Chandra Debnath, Principal of the training institute presided over the function.
The Board of Directors of Prime Bank on Wednesday recommended 12.50 percent cash dividend for its shareholders for the year ending on December 31, 2013 .
The Board has also decided to issue “Prime Bank Subordinated Bond-2” up to Tk. 2,500.00 million for raising Tier-II Capital subject to approval of the Regulatory Authorities, according to DSE website.
The Annual General Meeting of the company will be held on March 30, 2014 at 3:00 PM at Ruposhi Bangla Hotel in the capital.
The Record date is 13.03.2014. The Company has also reported Consolidated EPS of Tk. 1.98, Consolidated NAV per share of Tk. 22.69 and Consolidated NOCFPS of Tk. 2.41 for the year ended on December 31, 2013.
Meanwhile, the Board of Directors of Union Capital Limited recommended 10 percent stock dividend for the year ending on December 31, 2013.
The Annual General Meeting of the company will be held on March 31, 2014, at 10:30 AM at the LGED Auditorium (First Floor) in city’s Agargaon.
The Record datehas been set on 13th March, 2014.
The Company has also reported consolidated net profit after tax of Tk. 141.76 million, consolidated EPS of Tk. 1.29, consolidated NAV per share of Tk. 18.29 and consolidated NOCFPS of Tk. 3.13 for the year ended on December 31, 2013 as against Tk. 56.72 million, Tk. 0.52 (restated), Tk. 17.00 (restated) and Tk. 3.17 (restated) respectively for the year ended on December 31, 2012. —UNB
“We are going to formulate a regulation for CSR activities with the provision of retaining a minimum percentage of net profit of the financial institutions for performing their CSR activities” said BB governor Dr.
Atiur Rahman yesterday. He was addressing a MoU signing and cheque distributing ceremony organised by Green Banking and CSR department of Bangladesh Bank.
A total of nine government and non-government organisation, performing social services, were awarded by the BB’s Disaster management and social responsibility department for their outstanding contributions.
The BB distributed cheques worth about Tk 4.25 crore among the organisations to enhance their benevolent activities.
Distributing the cheques the governor hoped that the regulation would help build up a huge fund for CSR activities with wilful participations of banks and other financial institutions.News:Dailly Sun/5-Mar-2014