Borrowers have started seeking loans rescheduling facility from the state-owned banks and financial institutions, saying their businesses have been affected by the current political unrest.
“Businessmen have estimated losses incurred during this period and on the basis of their estimates they may have sought rescheduling of their loans,” Bank Division Secretary M Aslam Alam yesterday told the Dhaka Tribune.
The secretary held a coordination meeting with the managing directors of the state banks and financial institutions yesterday.
He said a political decision by the government was required to meet the businesses’ demand.
Aslam said the businessmen had wanted to meet Finance Minister AMA Muhith to tell him about their losses.
“But I wonder how real estate businessmen could have incurred losses of Tk800 crore during the current blockade and hartal,” the secretary said.
“Some unscrupulous businessmen might use the unrest as an excuse to seek the facility against their bank loans,” he added.
As of June last year, the state banks regularised a total of Tk18,552 crore under the relaxed loan-rescheduling rules, which were formulated in December 2013 to assist businesses affected by the political unrest ahead of the January 5 election last year.
According to Bangladesh Bank’s statistics, the eight state-owned and specialised banks accounted for almost half of the rescheduled amount (Tk9,174 crore).
Monitoring capacity, loan, audit
Aslam Alam said the Micro-credit Regulatory Authority (MRA) and the Insurance Development Regulatory Authority (IDRA) have less capacity to monitor activities in those sectors compared to that of Bangladesh Bank.
Even the monitoring capacity of Bangladesh Securities and Exchange Commission (BSEC) is also not strong enough to cover the two stock exchanges.
“We are trying to enhance the monitoring capacity of these bodies. The issue was discussed at the meeting,” Aslam said.
He said loans decreased in the state-owned banks during September-December last year compared to the same quarter in 2013, but classified loans increased in last calender year.
Defaulted loans of the state-owned banks increased 26.39% in the last quarter of 2014, according to a report of the central bank.
On December 31 last year, the defaulted loans stood at Tk20,797 crore while on September 30 that year the figure was Tk16,454 crore.
Aslam said they usually ask for strong internal audits of the state-owned banks and financial institutions.
He said Sonali and Rupali banks have delayed the process for the banks’ full automation, which will help resolve the “ghost accounts” problem.
World Bank project
The secretary said the World Bank will introduce a project to strengthen the financial sector this fiscal year. He said they also want funding from the World Bank for strengthening the central bank.
MDs of Sonali, Agrani, Janata and Rupali banks, Bangladesh Krishi Bank, Rajshahi Krishi Unnyana Bank, BASIC Bank and financial institutions and representatives from the BSEC, Bangladesh Bank and IDRA and MRA attended the meeting.
