The amount stands at Tk99,370 crore, or 11.45% of disbursed loans in Sep
The non-performing loans (NPLs) of banks rose by a staggering Tk10, 030 crore in a period of three months to September this year, increasing the amount of stress loan in the banking sector to Tk99,370 crore.
The bad loan amount was 11.45% of total disbursed loans in the given month,according to the latest Bangladesh Bank (BB) data. In June, total bad loans in the banking system was at Tk89,340 crore, or 10.41% of total disbursed loans.
Senior bankers and economists blamed the upward trend of NPLs on the culture of impunity, political interference in approving loans and ineptness of banks in dealing with the pressing issue.
Of the total NPLs, default loans ofsix state-owned commercial banks stood at Tk48,080 crore or 23% of their total loans. Their total outstanding loans were Tk1,53,933 crore in September.
Private Commercial Banks (PCBs) default loans stood at Tk43,666 crore or 6.58% of the total loans in the same month. Total outstanding loans of PCBs were Tk6,56,315 crore until September this year, the BB data said.
Former Bangladesh Bankgovernor Salehuddin Ahmed said it is the prime responsibility of banks to justify the eligibility of a company toget loans as well as its capacity to repay.
“But this is absent in approving loans as the bankers are sometimes involved in corruption and give loans resorting to irregularities.”
He also said that bankers often approve loans of big amounts without taking into consideration the collateral aspect of borrowers. In many cases, banks provide loans to bank defaulters, bypassing the central bank’s directives.
“So, banks are largely responsible for the rise in default loans.”
Default loans of foreign banks stood at Tk2,382crore or 7% of the total loans, with theirtotal outstanding loans hitting at Tk31,582 crore in September.
NPLs of two specialized banks-Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank- stood at Tk5,242 crore or 21% of the total loans in September. Their total outstanding loans stood at Tk 26,177 crore.
Former deputy governor of the central bank Khondkar Ibrahim Khaled said that NPLs would increase further in the next few quarters as some banks earlier had lent large amount of loans, violating banking norms.
“For the last few years, money from the banking sector was not disbursed,but was looted from the banks” he added.
Banks should immediately strengthen their monitoring and supervision systems to tackle default loans, he said out.
Bangladesh Bank Executive Director and spokesman Sirajul Islam told the Dhaka Tribune that the central bank has always been in a strict position to reduce defaulting loans.
He added that banks have to keep provisions and continue to put pressure on their profit-making abilities.