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State-run banks, FIs seek budget fund

  • Published at 05:40 am May 21st, 2013
State-run banks, FIs seek budget fund

 

The state-owned banks and financial institutions have urged the government to provide them with a budgetary allocation so they could overcome the acute capital shortage.

They submitted the request to the finance ministry so it could consider the allocation in the upcoming budget for the fiscal 2013-14.

The finance division at a review meeting on Monday, however, considered that the executives of the banks and FIs have created the crisis through irregularities, corruption and increased default loans, said an official.

Additional secretary of the banking division Amalendu Mukherjee chaired the meeting, attended by the managing directors of the banks and FIs.

Sonali, Agrani, Janata and Rupali banks proposed to float government bond as a means of making up the fund shortage while Krishi, Basic and Ansur-VDP Bank, and Bangladesh House Building Finance Corporation preferring cash assistance. Bangladesh Development Bank, however, did not seek any fund.

Officials hinted that the finance minister would take a decision in this regard.

Meanwhile, International Monetary Fund and Bangladesh Bank gave their consent to inject fund to the state-owned banks and financial institutions to meet their fund requirements.

According to Bangladesh Bank data, capital shortage of Sonali Bank is Tk238bn, Rupali Bank Tk737m, Agrani Bank Tk4.5bn, Janata Bank Tk8.5bn and Bangladesh Krishi Bank Tk452bn.