As of the end of June this year, ten banks, including six private commercial ones, faced a total provision shortfall of Tk31,549 crore, according to the latest data from Bangladesh Bank (BB).
These banks are National Bank, BASIC Bank, Agrani Bank, Rupali Bank, Bangladesh Commerce Bank, Dhaka Bank, Standard Bank, Bangladesh Development Bank, IFIC Bank, and Southeast Bank.
According to policy, banks are required to maintain a provision of 0.50% to 5% of their deposits. However, provisioning requirements can range from 20% to 100% depending on the classification of defaulted loans.
Central Bank data indicates that the provision shortfall in the banking sector increased by Tk4,963 crore between April and June. At the end of March this year, the sector's provision shortfall stood at Tk26,586 crore.
The Bangladesh Bank report also reveals that defaulted loans in the banking sector reached Tk2,11,391 crore, or 12.56% of total loans, by the end of June.
During the April-June quarter, classified loans rose by Tk29,096 crore, from Tk1,82,295 crore as of March 30.
BB data shows that state-owned commercial banks hold the largest share of classified loans (Tk1,02,483 crore or 32.77%), followed by specialized banks (Tk5,756 crore or 13.11%), private commercial banks (Tk99,921 crore or 7.94%), and foreign commercial banks (Tk3,229 crore or 4.74%).
