Bankers meeting on good borrowers incentive policy today

“The issue will be raised at the meeting as most banks are reluctant to comply with the policy,” said a senior executive of the central bank. He said banks are unhappy with the new policy, saying it will hurt their profit. But the central bank took a hard line in implementing the policy. It will discuss the issue at the bankers meeting and banks may be warned against not paying incentive to good borrowers, added the official. Earlier in March last year, BB offered good borrowers 10% rebate on interest accrued against their loan accounts through issuing a circular. According to the incentive package, the borrowers whose loan accounts remained unclassified for three consecutive years and complied with all terms and conditions will be entitled as good borrowers. At the end of three years, the good borrowers will receive 10% rebate on their loan interest every last year. Bangladesh Bank found all the banks except the four – Islami Bank Bangladesh Limited, Mutual Trust Bank, Rajshahi Krishi Unnayan Bank and HSBC – did not comply with the policy.