Finance Minister AMA Muhith expressed his deep frustration over poor performance of BASIC Bank’s current management in recovering default loans, according to official sources.
He has convened a meeting today with the board of directors of the financially troubled bank to discuss the matter.
Muhith asked the Banking Division to report him before the meeting about performance of the bank’s chairman and managing director who were appointed last year, the Bank Division officials said.
The bank had already been rejected Tk2,000 crore demand from the budget’s recapitalisation fund and was given Tk400 crore as it failed to show satisfactory performance in default loan recovery.
The bank, in fact, has fallen into a trap of liquidity shortage now, which keeps it unable to run foreign trade and earn money.
Officials said only sufficient fund injection could rescue the bank from the crisis.
“BASIC Bank is in badly need of enough fund injection to run foreign trading. In fact, the bank needs to be provided with Tk2,000 crore from recapitalisation fund. But it continues to exhibit failure in default loans recovery. ” Bank Division Secretary M Aslam Alam told the Dhaka Tribune.
He said the bank planned to earn a sufficient amount of money from foreign trading if it was given the fund.
According to the latest data, BASIC Bank, a state-owned specialised bank, incurred Tk169 crore loss during the January-June period compared to Tk40 crore profit in the same period last year.
Besides, the bank’s new management has only recovered Tk14 lakh against the target of Tk500 crore from its 20 top defaulters in the past six months.
The bank’s total loan figure currently stands at Tk6,310 crore, of which, 20 top defaulters owe Tk1,793 crore.
Historically a well-run bank, BASIC Bank’s woes started when the Awami League-led grand alliance government came to power in 2009 and appointed Sheikh Abdul Hye Bacchu as its chairman.
