The net profit of the bank witnessed 67.29% down to Tk43.60 crore during the year from Tk133.29 crore in the previous year, according to an investigation report prepared by Bangladesh Bank.
Earlier in 2012, the bank saw a jump in profit by 113% to Tk145.48 crore from Tk68.35 crore in 2011.
The rapid growth took a downward trend just after 2013, registering 8.38% growth to Tk133.29 crore from the previous year.
Bangladesh Bank identified increased provision requirement and operating cost as the causes of sharp fall in Grameen Bank (GB) profit.
The reduction in deposit rate in the market also contributed to the profit fall as a large portion of GB profit comes from the surplus fund deposited with different commercial banks, explained Ratan Kumar Nag, acting managing director of Grameen Bank.
The number of fraud cases inside the bank increased in 2014, raising concern to the central bank.
A total of 451 fraud cases involving around Tk27 crore were found during the year. Of the forged amount, only Tk5.78 crore was recovered.
The foreign fund inflow into the bank dropped gradually to Tk134 crore in 2014 from Tk152 crore in 2011. The highest foreign fund in the bank was Tk173 crore in 2008.
Nag said the flow of foreign fund reduced because of adequate deposits of Grameen Bank.
“Now the bank has enough deposit to invest, and so it does not need foreign fund any more,” he said.
The total deposit of GB stood at Tk17,000 crore by the end of 2014 compared to Tk14,854 crore in the previous year, according to the BB report.
The net loan of the bank was Tk9,164 crore in 2014 which was Tk8,770 crore in 2013.
The post of Grameen Bank managing director fell vacant since the resignation of its founding Managing Director Muhammad Yunus in 2011.
Moreover, nine directorial posts of borrower members also remained vacant from February last year.
There was no board meeting held since the vacancy of nine director’s post.
Grameen Bank regular activities are not being much interrupted at this moment, but its major policy decisions remain stuck, said Nag.
Though the central bank suggested reducing GB management cost, Nag apprehends that the cost will rise more this year due to wage hike.
He said GB follows the government wage scale, and so its cost will rise more than income in the coming years.
The central bank investigation report recommended holding the Grameen Bank board meeting in due time and making efforts to permanently appoint an MD.
Thursday, March 27, 2025
