The central bank has issued stern directives to 20 commerical banks who are facing capital deficit due to numerous large defaulted loans.
During a meeting with senior officials of the concerned banks on Monday, Bangladesh Bank asked the banks to take measures to urgently recover the loans.
The banks are: Dutch Bangla Bank Limited (DBBL), City Bank, Janata Bank, AB Bank, Rupali Bank, NCC Bank, State Bank of India, Woori Bank, Bangladesh Commerce Bank, ICB Islamic Bank, Jamuna Bank, Premier Bank, Bangladesh Krishi Unnayan Bank, EXIM Bank, Farmers Bank, Al Arafah Islami Bank, Rajshahi Krishi Unnayan Bank, Uttara Bank, Bank Asia and Bank of Ceylon.
Bangladesh Bank Deputy Governor SK Sur Chowdhury told journalists after the meeting: “We organised this urgent meeting with officials from 20 banks due to their low progress with loan recovery procedure.”
The banks had been asked to employ experienced lawyers to deal with cases against certain bank loans.
According to central bank sources, the banks were instructed to submit their progress reports to the central bank on their loan recovery every three months. They were also asked to submit regular reports on their classified loans, recovered loans and written-off loans.