Top defaulters slow to repay NCB loans

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Recovery of defaulted loans of nationalised commercial Banks (NCBs) from the top 20 defaulters slightly rose to 15 percent of the target in the first six months of the current year while that from others stood at 51 percent.

Besides, loan disbursement of the NCBs declined by 0.42 percent during the period.

The central bank on Monday shared the NCBs’ six-month financial review with their top officials. It suggested boosting loan disbursement to private sector especially agriculture sector.

Sources in the NCBs said recovery defaulted loans from top 20 defaulters has not increased much as most of them filed writ petitions with court delaying the process.

Recovery of defaulted loans from others increased significantly due to the government’s anti-corruption drive.

Although the NCBs’ loan disbursement declined during the first six months of this year, it is now increasing due to government initiatives for restoring businessmen’s confidence, the sources mentioned.

According to central bank data, the four NCBs realised only Tk 39.29 crore from top 20 defaulters during January to June against the target of Tk 255.2 crore this year. And Tk 481.98 crore was realised from other defaulters during the same period with this year’s target being Tk 946 crore.

Sonali Bank, the largest NCB, managed to recover Tk 3.29 crore from top 20 defaulters in the first six months, which is only 1.77 percent of the year’s target of Tk 169.4 crore.

Agrani Bank could recover Tk 1.16 crore against the target of Tk 19.8 crore and Rupali Bank Tk 1.94 crore against the target of Tk 38.5 crore.

Janata Bank’s performance was a bit better and it realised Tk 32.9 crore while its target was Tk 27.5 crore for the six-month period.

In case of other defaulted loans, Sonali Bank recovered Tk 231.91 crore in the first six months against the year’s target of Tk 440 crore, Janata Bank Tk 118.16 crore against the target of Tk 165 crore, Agrani Bank Tk 118.76 crore against its Tk 275- crore target and Rupali Bank realised Tk13.15 crore against the target of Tk 66 crore.

Credit disbursement of Janata and Agrani declined in June this year compared to December last year’s. But loan disbursement of Sonali and Rupali rose during the period.

According to available data, Janata Bank’s credit declined by 2.67 percent and Agrani Bank’s by 1.55 percent. Sonali and Rupali’s credit rose by 0.77 percent and 2.46 percent respectively.

Earlier, the central bank had set a limit of credit growth in the NCBs that says it will not exceed five percent comparing to that of the previous year.

Overall defaulted loans increased as new loans were defaulted.

Total classified loans of Sonali Bank went up by four percentage point to 29.59 percent in June compared to December last year while that of Janata rose by 0.93 percentage point to 14.13 percent.

Agrani Bank’s classified loans went up by 0.81percentage point to 28.91 percent in June while that of Rupali rose by 10.04 percentage point to 36.07 percent.

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