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Sonali Bank turns worst in banking: Muhith

  • Published at 04:33 pm August 17th, 2013
Sonali Bank turns worst in banking: Muhith

Finance Minister AMA Muhith has said Sonali Bank has now become the worst bank in the country due to the big credit scam of Hall-mark.

“Because of big Hall-mark scam the bank’s capital based eroded, provision shortfall widened and capital adequacy weakened,” he told a workshop in Dhaka yesterday.

The Planning Commission and IDCOL jointly organised the workshop titled “Role of Media in National Development” at the NEC Auditorium.

The Hall-mark group embezzled an amount of around Tk35bn from the largest state-owned commercial bank, putting it into the sorry state.

The minister, however, said the loan amount is only 1% of the total loan of Tk4tn provided to its clients, showing the impact of the scam very little on the country’s economy.

Meanwhile, Muhith is scheduled to hold a meeting with the state-owned commercial banks today to review the present status of the big credit scams took place recently.

Sources in the banking division said roughly around Tk87bn embezzled through credit forgeries related to Hall-mark, Bismillah Group and Basic Bank.

Bangladesh Bank has sought around Tk100bn from the government to recapitalise the state-owned commercial banks to become competitive with the private banks.