Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Sunday, February 17, 2019 04:46:48 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Habitual defaulters

Banks rescheduled Tk 26,308 cr bad loans last year

By Special Correspondent
Share your thought
Post a comment »
Read all () »

Habitual defaulters with no intention to pay back have reportedly been able to reschedule a big amount of their bad loans last year under a 'special policy' offered by the central bank.
Banks have altogether rescheduled Tk 26,308 crore in bad loans in 2015 taking advantage of the special loan rescheduled policy, official sources said.
The central bank offered the policy under the pressure of a powerful quarter comprising big borrowers and business tycoons, leaving the corresponding banks with nothing to recover their outstanding loans piled up over the years.
"Banks have apparently failed to recover money from the 'Habitual defaulters' as they are influential in political circles and bureaucracy, and have the money power to fight long legal battles," Dr Salehuddin Ahmed, a former Bangladesh Bank (BB) Governor, told The New Nation yesterday.
Terming the BB's special loan rescheduled policy as a 'pervasive incentive' for the 'Habitual defaulters,' Dr Salehuddin Ahmed said BB should not provide such a facility when the banking sector is sinking due to large loan scandals and growing default culture.
He observed that the commercial banks, especially state-owned ones, are finding it hard to recover bad loans from the influential borrowers due mainly to management inefficiency and corruption.
"Recovery of the bank's money will require coordinated action among the central bank, other sector regulators and the government.    The BB, as the banking regulator, should take the initiative," suggested Dr Salehuddin Ahmed.
The former BB Governor also mentioned that the banks are now grappling with huge defaulted loans and the situation is particularly grim at the public commercial banks.
"The main cause of the rising defaults at public banks is that the loans were given through anomalies and political influence. Besides, the loans were never monitored and actions taken against the defaulters to realise the outstanding loans," he added.
According to the latest BB data, banks have altogether reported Tk 63,365 crore defaults amount which is 10.06 per cent of their total outstanding loans.
"Habitual defaulters always escape from pay off bank money using their political influence and money power. Sometimes policies of the central bank also help them to do such bad practices," Dr Ibrahim Khaled, a former BB deputy governor, told The New Nation yesterday.
He said, "Our recent experience suggested that banks always try to facilitate big borrowers and corporate groups by allowing multiple rescheduling for a longer period.  They later turned into habitual or willfull defaulters taking advantage of the facility". 
They should not be allowed to do such unethical practices because it is depriving the honest borrowers as well as eroding financial health of the financial institutions. They should be brought under the book to ensure discipline in the banking sector, said Dr Ibrahim Khaled.
"It's high time that the government, the judiciary and the BB to come out with a plan of action on how to deal with habitual defaulters. On top of this, a strong political will of the government is necessary to come out from the growing default culture, recovery of money from the defaulters and ensure stability of the banking sector," he suggested.

Add Rate

News Archive

Inside The New Nation

Editorial »

Ensure safety for patients in the hospitals by any means

CITY'S Shaheed Suhrawardy Medical College Hospital has started operations after a messy situation caused by fire on Thursday evening. Director of the SSMCH said a total of 1,174 patients, including 72 children, were shifted to other government hospitals after the fire originated at the children's ward on the second floor ...

Sports »

Stunned Japan swimmers back stricken Olympic pin-up Ikee

AFP, Tokyo :Japanese swimmers have vowed to step up their efforts in support of Rikako Ikee, the poster girl for the 2020 Tokyo Olympics who has announced she is suffering from leukaemia.Earlier this week, the 18-year-old swim queen tweeted that she had cut short a training camp in Australia after ...

Football »

Capoue sends Watford into FA Cup quarter-finals at QPR's expense

Etienne Capoue's goal in first-half stoppage time was enough to give Watford a 1-0 win away to Queens Park Rangers (QPR) on Friday that saw the Hornets into the quarter-finals of the FA Cup.Both sides had opportunities in an even opening period that belied the fact that Watford are eighth ...

International »

Turkey has not revealed all about Khashoggi killing : Erdogan

AFP, Ankara :Turkey has not yet revealed all the information it has discovered about the killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul, President Recep Tayyip Erdogan said Friday."We haven't given all the elements we have at our disposal," the Turkish head of state said during an ...

Entertainment »

Fagun Haway' draws huge acclamation

Entertainment Desk :The premier show of 'Fagun Haway', a movie based on the 1952 Language Movement, draw a large number of film loving people at cinema halls.Actor turned director Tauquir Ahmed directed the movie which was released simultaneously at 52 cinema halls across the country.The story of the movie was ...

City »

The Namaz-e-Janaza of Poet Al Mahmud was held at the Jatiya Press Club on Saturday.

Editorial »

Save the Sunderbans to save the Royal Bengal Tigers

FOR the constant rise in sea levels and rapid climate change, the famous Royal Bengal Tigers of the Sunderbans could be disappeared within 50 years, especially from the Bangladesh part, according to a new study published recently in the journal Science of The Total Environment. A team of Bangladeshi and ...

City »

Members of RAB-2 nabbed one on Friday from Narayanganj for taking money from government officials from different areas in the country impersonating Anti-Corruption Commission official.


Cricket »

Feels like it`s a blessing to just be playing again: Steyn

Agency :Dale Steyn, the South African mainstay, continued to impress on his comeback trail, as he bowled at high pace and picked up four wickets over a long spell on Day 2 of the first Test of the two-match series versus Sri Lanka in Durban.The veteran fast bowler bowled at ...

Entertainment »

Shanta Jahan feels comfortable in hosting

Sheikh Arif Bulbon :Popular host of present time Shanta Jahan has to be engaged with hosting round the year in and outside the country in different stage shows and TV programmes. Besides hosting, she has more identities. She is also a model and TV actress. But she always feels comfortable ...

International »

Trump heavier, but in ‘very good health’: Doctor

AFP, Washington :President Donald Trump is a little heavier than last year and needs a higher dose of cholesterol medicine, but remains in "very good health," his official doctor said Thursday.The presidential physician, Sean Conley, said Trump, 72, passed his medical exam last week with flying colors."It is my determination ...

Cricket »

It was difficult to hit through the line of the ball in Napier: Guptill

Martin Guptill is happy to work his way through the travails of a slow Napier pitch and score an ODI hundred, which helped New Zealand beat Bangladesh by eight wickets in the opening game of the three-match series. The hosts had notably lost the ODI against India here couple of ...

International »

Taliban announces surprise talks with US in Pakistan

PTI, Islamabad :The Taliban said Wednesday that its negotiators would meet US envoys for talks this month in Islamabad, and also sit down with Pakistan Prime Minister Imran Khan to discuss Afghanistan.While Islamabad did not immediately confirm the talks, Washington said it had "noted" the announcement, which comes after weeks ...

International »

Judge finds Manafort lied to investigators in Russia probe

AP, Washington :Former Trump campaign chairman Paul Manafort intentionally lied to investigators and a federal grand jury in the special counsel's Russia probe, a judge ruled Wednesday.U.S. District Judge Amy Berman Jackson's decision was another loss for Manafort, a once-wealthy political consultant who rose to lead Donald Trump's 2016 campaign ...

Editorial »

Myanmar`s provocation: Dhaka should deal with the issue delicately

YET again Myanmar has shown Saint Martin's Island of Bangladesh as of its part in the official map. Protesting it, Dhaka on Thursday summoned Myanmar Chargé d'affaires and handed over a strongly worded protest note also expressing serious dissatisfaction over repeating such false claim, and demanded immediate corrective measures. Director ...

Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Write a comment to this news