It is outrageous that state banks have waived nearly Tk87bn interest against loans in the past 10 years. This is equivalent to nothing more than taking money out of depositors’ pockets, and a considerable amount at that.
Bear in mind that the state banks have not specified any criteria, on which the board of directors of those banks have based their decisions to approve the waivers.
Such actions by the state banks raise questions about whether these waivers were done because of political influence, and the extent of such influence.
Their actions also raise the question of whether these state banks serve the purpose for which they were established, if they are so easily influenced.
In recent months, there have been allegations of pressure being put on state banks, through the use of political influence, to waive loans in order to expedite loan recovery.
While one can understand if banks waive interest for someone who is genuinely affected and unable to pay, to make exemptions for those who may or may not be as affected, but use their political connections to have their own way, is a dangerous practice that the banks must stop following.
Exempting interest is a short-term solution that may do more harm to the banking sector in the long run, and must be discouraged.
