BASIC Bank is not beyond saving, despite still being in the process of recovering from huge losses due to a loan scam, says Finance Minister AMA Muhith.
“Although the financial condition of the state-run BASIC Bank is still dire, it is not beyond saving,” the minister said at the Tk10 crore dividend giving ceremony of Bangladesh Development Bank (BDBL) at secretariat Wednesday.
BASIC Bank has been undergoing a long process of recovery from record losses of TK27 billion in 2014. In light of the situation, Bangladesh Bank found various irregularities in BASIC Bank in providing loans.
The irregularities included non-verification of clients’ creditworthiness, absence of “know your customer” procedures and lending to defaulters. Former Deputy Managing Director of BASIC Bank Abdul Monayem Khan was sacked in November of this year after his involvement was proved.
“We have taken initiative to bring the bank back on its feet, and the team dealing with the issue is very experienced”, said the finance minister.
On another note, Muhith said the government had taken steps to clean up the law governing mergers, as they foresee a number of them taking place due to the abundance of banks in Bangladesh.
“Mergers are unavoidable in the present day, because there are too many banks in the country. The number of banks now stands at 56”, he said.
Thursday, March 27, 2025
