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Dhaka Tribune

Junior minister asks state banks, FIs to outsmart lobbyists

Update : 12 Oct 2015, 07:30 PM

State Minister for Finance MA Mannan has asked the bankers to rise above lobbying as a strategy to gradually recover the ailing financial health of the state-owned banks and financial institutions.

He suggested the top officials of banks and financial institutions not to bow down to the requests from lobbyists and carry on their works guided by morality.

He said 90% of his daily works are centred on entertaining requests from lobbyists, of which 89% are unfair.

“We receive some unfair requests that should not be made, but we cannot say no,” he said while addressing a signing ceremony at the Bangladesh Secretariat yesterday.

Bank and Financial Institutions Division of the finance ministry signed performance contract with five-state-owned specialised banks and two financial institutions with an aim to improve their financial health. 

Finance Secretary M Aslam Alam chaired the event while managing directors and chairmen of the respective institutions were present.

DO (demi official) letter is known to all, he said, adding that even a farmer knows what the DO letter is. “Please, don’t call me untimely and don’t make unusual requests,” he said.

The banks and financial institutions that signed the performance contract are Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Karmasangsthan Bank, Ansar VDP Unnayan Bank, Probashi Kallyan Bank, Bangladesh House Building Finance Corporation and Investment Corporation of Bangladesh.

The government started the performance contract system from financial year 2014-15 to achieve expected goal. As part of this, the government signed the contract for the second time yesterday.

The performance of banks and financial institutions was found better in their evaluation as the evaluation criteria was set loosely considering the first year, he said at the signing ceremony.

The evaluation was done on the basis of financial indicators of the institutions.

ICB disbursed loans and advances of Tk1,411 crore in the year 2014-15 and disbursement target for 2015-16 is set at Tk1,550 crore, for 2016-17 Tk1,620 crore and for 2017-18 Tk1,650 crore.

Automation implementation of ICB was 20% in the last fiscal year and the target is set at 25% for FY2015-16.

Probashi Kallyan Bank disbursed loans of Tk33.26 crore in the FY2014-15 and the target is set at Tk42 crore for FY2015-16 Tk60 crore for FY2016-17 and Tk70 crore for FY2017-18.

The number of the bank branches that incurred loss was 26 in last fiscal year which will have to be reduced to 16 by FY2015-16, 10 by FY2016-17 and 5 by 2017-18.

Ansar VDP Unnayan Bank disbursed loans of Tk344.68 crore in the last year and the disbursement target is set at Tk375 crore for FY2015-16, Tk500 crore for FY2016-17 and Tk520 crore for FY2017-18.

BKB disbursed loans of Tk5,721 crore in the FY2014-15 and it will have to disburse Tk6,300 crore by FY2015-16, Tk7,000 crore by FY2016-17 and Tk7,500 crore by FY2017-18. 

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