Financial healths of four state-owned commercial banks have deteriorated further in September last year because of rising default loans.
Default loan of Sonali Bank stood at 27.63% till September last year, followed by Janata Bank at 12.38%, Agrani at 22.20% and Rupali at 12.17%, according to a Memorandum of Understanding review report prepared by Bangladesh Bank.
The default loans of the four banks superseded the central bank’s target to reduce the loans to 20% from the previous level for the state-owned banks as per MoU.
As of September, 2015, total shortfall of the banks stood at Tk3,052 crore.
During the period, capital shortfall of Sonali Bank was Tk2,015 crore, followed by Janata Bank Tk663 crore and Rupali Bank Tk374 crore. However, Agrani Bank performed well compared to the three state-owned banks as its capital remained in surplus of Tk46 crore till September.
The capital adequacy ratio (CAR) of the three banks except Agrani came below the international standard level of 10% as per Basel III. The CAR of Sonali Bank was 4.9%, Janata 8.41%, Rupali 7.53% and Agrani 10.17% in September.
The report was presented at a meeting between Bangladesh Bank and top managers of four state banks over the bank’s performance over capital shortfall and default loans yesterday.
Net profit of four banks also declined in September last year. During the period, Sonali Bank lost Tk1,167 crore, but was in profit of Tk605 crore in December, 2014. Janata Bank bagged profit of Tk296 crore , but was in profit of Tk381 crore during the period.
Agrni bank posted profit of Tk172.52 crore in September, but made profit of Tk198 corre in December 2014. Rupali Bank made profit of Tk21 crore, but its profit was Tk42 crore during the period.
The central bank has recently appointed observers in four state-owned banks for improving their financial healths.
