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Download PDF Defaulted loans in the banking sector increased by about Tk 1,215 crore or 5.36 percent in the first quarter of this year due to sluggish economy.
According to Bangladesh Bank (BB) statistics, the loans defaulted till March 30 totalled Tk 23,838 crore, compared to Tk 22,624 crore on December 31 last year.
Of the increased amount, the four state-owned banks accounted for Tk 421 crore, private commercial banks Tk 825 crore and foreign commercial banks Tk 33 crore. Development financial institutions’ defaulted loans however declined by Tk 64 crore during the same period.
Khondkar Ibrahim Khaled, Krishi Bank chairman and former BB deputy governor, said many businessmen are either in jail or absconding because of anti-corruption drives, which is hampering repayment of loans.
He also identified price hike of essentials as an indirect reason for the increase of defaulted loans. People are spending more on food items than on other commodities, and profits in other businesses have reduced for this, he said.
Echoing Ibrahim Khaled’s views, chief executive officer of a private commercial bank told The Daily Star that commercial banks rescheduled large amounts of classified loans in December last year in a relaxed manner. Those loans have become defaulted again in the first three months of this year, he added.
Of the government-run banks, increase in defaulted loans was Tk 293 crore in Sonali Bank, Tk 7 crore in Janata Bank, Tk 109 crore in Agrani Bank and Tk 12 crore in Rupali Bank.
“We are facing a lot of legal complexities in recovering the loans,” said a top official of Sonali Bank.
Defaulted loans in most of the private commercial banks also increased in the first quarter of this year.
“We are taking measures to reduce the volume of our bank’s classified loans, and hope the total figure will reduce in June,” said a senior official of a private bank.
Of the Tk 1,81,234 crore outstanding bank loans, the volume of classified loans was Tk 23,838 crore or 13.13 percent on March 30 this year, compared to Tk 22,624 crore or 13.23 percent on December 31, 2007, the sources said.
Classified loans in state-owned banks stood at Tk 14,212 crore or 30.09 percent of outstanding loans on March 30, which was Tk 13,791 crore or 29.27 percent on December 31 last year.
Defaulted loans in private banks rose to Tk 5,746 crore or 5.42 percent of outstanding loans on March 30, compared to Tk 4,921 crore or 5.01 percent in December last year.
The amount of defaulted loans in foreign commercial banks was Tk 227 crore or 1.54 percent of outstanding loans in March this year against Tk 194 crore or 1.43 percent in December last year.
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