Bangladesh News

Bangladesh Petroleum Corporation (BPC), Bangladesh Textile Mills Corporation (BTMC), Autorickshaw Samabay Samity (ASS) and Khulna Newsprint Mills (KNM) are the four top loan defaulters in 10 leading banks of the country.

These four entities using government guarantee to obtain the loans are holding 31 per cent of the total defaulted loans of Tk 9,031 crore as of March this year, according to Bangladesh Bank (BB) data.

Twenty top defaulters, including these four, are responsible for 49 per cent of the total defaulted loans with these banks.

BB’s Deputy Governor Mohammad A Rumi Ali at a meeting with these 10 banks asked them to engage special teams for each of the defaulters to speed up recovery of the loans.

Ali noted that many borrowers have simultaneously defaulted on loans with different banks. For instance, Gaffar Food Production Ltd is at once a simultaneous defaulter with the City Bank, Premier, IFIC and Islami banks. He asked the banks to identify such borrowers and notify the central bank about them.

The meeting with the 10 banks was a follow-up of their meeting with the BB back in March. The central bank then identified that defaulted loans from these banks had increased with the top 20 defaulters. The banks are Sonali, Shilpa, Islami, National, City, Southeast, Premier, Dutch-Bangla, Jamuna and Brac.

Of these, Sonali Bank alone has the highest Tk 7,563 crore defaulted loan and Jamuna Bank has the lowest Tk 7.48 crore.

In Sonali Bank, the top 20 defaulters have Tk 3,400 crore loan, which is 45 per cent of the bank’s total defaulted loan in March. Of these defaulters, the BPC held Tk 2,500 crore loan, BTMC Tk 143 crore, ASS Tk 83 crore and KNM TK 72 crore.

Again, the BPC’s defaulted loan increased to Tk 4,300 crore with this bank in June.

The bank is troubled with the KNM default loan as this state- owned enterprise has remained shut for years. The government however has decided to sell out the KNM property and clear its loans, sources said.

The ASS loan was given a decade back against a government guarantee. But hardly any repayment of the loan was made.

Faced with liquidity crisis, Sonali Bank has requested the central bank to take up with the government repayment of the defaulted loans.

Out of the Shilpa Bank’s total defaulted loan of TK 426 crore, the top 20 defaulters are holding Tk 356 crore or 83 percent. The bank authorities told the BB that some of the top defaulters have recently regularised their loans through re-scheduling.

Of the Tk 366 crore total defaulted loans with the Islami Bank, the top 20 defaulters hold Tk 160 crore or 44 percent of the total.

National Bank has a total defaulted loan of Tk 202 crore, of which top defaulters are holding 64 percent or Tk 130 crore.

City Bank has Tk 152 crore defaulted loan, of which top defaulters hold Tk 133 crore or 87 percent.

Southeast Bank has a total defaulted loan of Tk 145 crore, of which Tk 106 crore or 73 percent with the top defaulters.

Premier Bank’s defaulted loan totals Tk 96 crore. Of this, top defaulters are holding Tk 74 crore or 77 percent.

Dutch Bangla Bank has defaulted loan of Tk 38 crore, of which top defaulters hold 34 crore or 89 percent. Brac Bank has Tk 36 crore defaulted loan with Tk 3.5 crore or 11 percent of it with held by defaulters. Jamuna Bank has Tk 7.48 crore defaulted loans. Of this, top defaulters hold Tk 6 crore or 85 percent.