Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Saturday, October 21, 2017 01:54:24 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Recapitalisation making banks bankrupt only

By
20th-May-2017       
Comments
Share your thought
Post a comment »
Read all () »

AS the growing non-performing loans are depleting the treasuries of state-owned banks, the government has been pouring huge chunks from the National Exchequer in every budget since 2011-12 without taking comprehensive efforts to realize the loans. The ongoing mechanism seems to be where some vested quarters, mainly ruling party blessed businesspeople, take loans from banks without proper mortgages and documents and does not pay monthly installments, but no legal action is being taken against them or they are not averted from taking new loans.

As per Bangladesh Bank data, the non performing loans soared to 82 percent of the total bad loans in the banking sector at the end of March while the SoBs has 84 percent of such classified loans. In the name of recapitalization, the government has poured Tk 9,500 crore in the SoBs but the situation is deteriorating as the money is ultimately being invested in the lockless treasury from where the thieves are misappropriating the sums. Without plugging the hole in the system, the budgetary allocations can only encourage the mismanagement, corruption and bad loans.

The BB data revealed that at the end of March 2017 the default loans reached Tk 35,715 crore in the six SoBs, whereas Tk 29,920 crore is classified as bad loans. The default loans at 39 private commercial banks have soared to Tk 29,727 crore, where the bad loans are Tk 23,829 crore. The loans, if not realized in three consecutive months become default loans, after six months they are classified as doubtful loans, and after nine months they turn into bad loans. At the end of nine months tenure, the banks can take legal steps to realize the loans but the legal process consume  a long time and money, bringing  a new burden on the banks.
Over the years, the trend has  paralyzed the banking sector but no harsh steps have  yet  been chalked out but injecting money from tax-payers pocket is going on without plugging the spillages. The mechanism followed by vested quarters of new businesses is the easiest way of swindling money as the government injects money which is swindled.

The recapitalizing scheme that bears no fruit over the years is set to get another Tk 2000 crore in the upcoming budget of 2017-18. The loan defaulters, money swindlers, corrupt officials of the SoBs are lucky as government is set to award them in the name of recapitalization. So, there remains no need to repay the loans to the banks. This state mechanism has already proved suicidal and nonperforming, rather encouraging to the loan defaulters.

It is a tragedy that the government itself is not willful to realize the money that was disbursed to the defaulters but is rather injecting new capital in the SoBs by realizing the hard-earned tax money from ordinary people by squeezing them. The damage which occurred in the banking sector will not only bankrupt the banks but also the national economy. All powers should be invested to realize the money and make the banks vigorous again.

Tariff
Add Rate

News Archive

Inside The New Nation

Football »

Giroud`s overhead kick gives Arsenal 1-0 win at Red Star


Agency :Olivier Giroud scored late in the second half for Arsenal to maintain its perfect Europa League campaign with a 1-0 win over 10-man Red Star Belgrade on Thursday.Five minutes after Milan Rodic was sent off for a second yellow card, Giroud struck with an overhead kick five minutes before ...

Entertainment »

Ali Fazal and Shriya Pilgaonkar come together for Web Series


Shriya Pilgaonkar who was appreciated for her Hindi film debut as Shahrukh Khan’s love interest in Fan and for her viral short film Jai Mata Di, is now going to be seen in a web show called Mirzapur produced by Farhan Akhtar and Ritesh Sidhwani for a global online platform ...

Editorial »

Flood victims yet to get enough support


GOVERNMENT and aid agencies have provided emergency relief for flood victims but not sufficient to settle flood victims as per media reports quoting Center for Policy Dialogue (CPD) researchers who tried to figure out the distribution system in the Haor areas. Over 37 lakh people were affected in the floods ...

City »

Islami Andolon Bangladesh brought out a rally in the city on Friday in protest against price hike of gas and electricity.


.

International »

Iranian Army chief, Assad discuss joint military strategy


Reuters, Beirut :Iran's military chief met with Syrian President Bashar al-Assad on Thursday during a visit to Damascus to set out a joint military strategy, Syria's state news agency reported, a sign of deepening Iranian influence that has alarmed Israel.General Mohammad Baqeri said Iran was determined to continue supporting the ...

Editorial »

Mr Xi`s new vision for China


CHINESE President Xi Jinping has laid out a far-reaching vision for a more prosperous nation and a dominating role for China in the world as the US President Donald Trump is working on a reverse way isolating his country from the world leadership role. In the domestic front he has ...

International »

May to urge EU leaders to speed up Brexit talks


AFP, Brussels :British Prime Minister Theresa May will appeal to European Union leaders at a crunch summit in Brussels on Thursday to push forward the deadlocked Brexit negotiations.At a meeting moved to a new venue at the last minute due to an eruption of toxic gas, May will urge her ...

Cricket »

Rangpur Riders recruit Brendon McCullum


Sports Reporter :Rangpur Riders have recruited wicketkeeper-batsman of New Zealand Brendon McCullum for the up coming fifth edition of Bangladesh Premier League (BPL).Chief Executive Officer of Rangpur Riders Ishtiaq Sadek said to the newsmen, " We have confirmed that McCullum will join our squad on November 15. He will play ...

Entertainment »

Titaan Chowdhury hosting `Sampan`


'Sampan' is one of the popular programmes of Chittagong centre of Bangladesh Television of present time. Dance, music, magic, etc are presented in this show. Popular face of the small screen Titaan Chowdhury is hosting this programme. Positive side is Titaan is hailed from Chittagong. So it becomes easier for ...

City »

BNP Chairperson Begum Khaleda Zia appeared before the Alia Madrasha Special Court in the city's Bakshibazar on Thursday seeking bail on Zia Orphanage Trust and Zia Charitable Trust Graft cases.


International »

Threats to start war with North Korea `dangerous, short-sighted`: Hillary


Reuters, Seoul :  Former U.S. presidential candidate Hillary Clinton said on Wednesday that "cavalier" threats to start war on the Korean peninsula are "dangerous and short-sighted", urging the United States to get all parties to the negotiating table.Clinton also called on China to take a "more outfront role" in enforcing ...

Sports »

U-12 School Handball Tournament begins tomorrow


Sports Reporter :The Atom Gum Under-12 School Handball (Boys' & Girls') Tournament begins tomorrow at the Shaheed (Captain) M Mansur Ali National Handball Stadium.Bangladesh Handball Federation will organize the handball meet under auspices of Pran Confectionary Limited.In this regard, a press conference was held at the Dutch-Bangla Bank Auditorium in ...

Editorial »

Diplomacy must work in Korean peninsula


THE Korean peninsula is closer to war again as a North Korean official reaffirmed on Monday Pyongyang's commitment to developing a long-range intercontinental ballistic missile capable of reaching "all the way to the East coast of the mainland US." He said his country is currently not interested in diplomacy with ...

Entertainment »

Only Sunny Leone could dare to wish Diwali in this unique manner


Sultry actress Sunny Leone who has millions of die-hard fans around the world has come up with a new video and that too in her own style. Sunny Leone has posted a new video in which she is wishing a Happy Diwali, especially to the boys. This video is, in ...

City »

Liberation Affairs Minister AKM Mozammel Haq speaking as Chief Guest at a discussion meeting organised by the BADC Sramik -Karmachari League on the occasion of its 56th founding anniversary of Bangladesh Agriculture Development Corporation (BADC) at its Conference Room yesterday.


 
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
Email:
Write a comment to this news