The country’s banking sector witnessed marginal half-yearly profit from January to June through regaining business confidence after a prolonged political crisis.
Of the 39 private banks, Islami bank made highest profit of Tk840 crore in June this year compare to Tk828 crore in the same period of the last year.
Banks have experienced minimum profit since last two years amid sluggish investment climate and high NPL rate, said a senior executive of a private bank.
But the banking sector has overcome the political shock with the support of Bangladesh Bank, which allows the banks to regularise default loans through rescheduling policy advantages, he said.
The relaxed policy of loan rescheduling contributed to getting marginal profit, he said.
The bank mostly earned from the investment of government bonds, bills as credit growth remained slower despite cooling down the political unrest.
The credit growth was 13% to 13.6% from the beginning of the year.
Some banks including National bank, Standard Bank, Mercantile etc made lower profits in 6 months than the same period of the last year.
The profits of new banks increased marginally in the half yearly estimates.
Bankers of the new banks hoped that the banks would be able to make more profit in the coming year as they got tax reduction facilities in the new budget that passed on June 30.
Government reduced tax from all the listed companies including the fourth generation banks to 40% from 42.5% at the new budget to facilitate their business.
