Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Tuesday, April 23, 2019 07:03:10 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Tk 11,660cr injected into ailing public banks in six years

Economists insist on improving governance

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

The government continues to inject budgetary funds into ailing public banks despite criticism from various corners.

Official data show, public banks got Tk 11,660 crore in recapitalisation funds in the period stretching from 2011-12 to 2016-17 fiscal years.

The government has allocated Tk 341 crore and Tk420 crore recapitalisation funds to public banks in between 2011-12 and 2012-13 fiscal years. But the allocation surged to Tk 4,477 crore and Tk 2,617 crore in each of the following two fiscal years.

Besides, Tk 1,800 crore and Tk 2,000 crore were provided to public banks in the 2015-16 and 2016-17 fiscal years.

Criticizing such capital infusion programme, former Bangladesh Bank Governor Dr Salehuddin Ahmed told The New Nation yesterday that the government continued to recapitalise public banks although their performances had not improved. "Even, they are running with a high-level of non-performing loans (NPLs) and no drastic measure is in sight to recover such loans," he added.

Terming the government move "illogical," Dr Salehuddin said," It is nothing but wastage of taxpayers' money, which could have been invested in social sectors to improve the livelihood of people. Public money will be injected into the banks only if they go through drastic reforms."

The former BB governor observed that public banks are now operating with huge capital shortfall resulted from loan scams and the rising bad loans in their overall credit portfolios. This has weakened their financial health, created large-scale capital shortfall and squeezed profitability and ability to expand lending activities. "Public banks have already plunged into grave crisis owing to large amount of bad loans, poor governance and corruption. So, fresh capital injection without improving their governance and recovery of bad loans may not yield any positive result," Dr AB Mirza Azizul Islam, a former adviser to a  caretaker government, told The New Nation.

Such budgetary fund for the public banks is nothing but a drainage of taxpayers' money, he said, suggesting that the practice must be stopped for the best use of public money.

Both the economists urged the management of public banks to expedite loan recovery drive and reduce the amount of default loans to improve public banks’ financial health.

As on March 2017, seven public banks-Agrani, Janata, Rupali Sonali, BDBL, BASIC and BKB-had Tk14,700 crore capital shortfalls.

Add Rate

News Archive

Inside The New Nation

Football »

Ronaldo '1,000 percent' with Juventus

Cristiano Ronaldo said on Saturday he is "1,000 percent committed" to staying with Juventus next season after claiming his first Serie A title.Massimiliano Allegri's side needed just one point to nail down its eighth straight league championship, which helped ease some of the pain of its shock Champions League exit ...

International »

Top Democrats leave open option of Trump impeachment after Mueller report

Reuters, Washington :Top congressional Democrats left the door open on Sunday to the impeachment of US President Donald Trump, but said they would first need to complete their own investigations into whether he obstructed justice in Special Counsel Robert Mueller's Russia probe.Some party leaders have cautioned against impeachment just 18 ...

National »

PIROJPUR: Floating Watermelon Bazar at Swarupkathi Upazila has gained momentum as the district has achieved bumper production of the summer fruit. This snap was taken on Monday.

Business & Economy »

SM Jaffar, DMD of Al-Arafah Islami Bank Limited (AIBL) and Azizunnessa Huq, Executive Director of Fintech Innovations International, UAE, exchanging an agreement signing document at the Bank's head office in the city Wednesday. Under the deal, AIBL becomes a subscriber of the digital platform "TradeAssets" which will enable AIBL to enhance its capabilities in reaching out to all foreign financial institution members of the platform, directly, with a view to executing trade finance related transactions instantly. Farman R Chowdhury, CEO of the bank and senior officials from both sides were also present.

Entertainment »

Ananya Panday is binging on between breaks

Ananya Panday who is making her debut with Student Of The Year 2, is ringing high on the excitement with her recently released song, The Jawani Song. The teen sensation is a web series maniac and the testimony of the same are the series that Ananya binge watches, stealing time ...

Editorial »

The debt cycle must end

IN disaster prone Bangladesh floods, erosions and landslides are considered much more devastating as they make more people shelter-less each year. Losing everything, the affected people borrow from money lending Mahajans, micro credit institutions as well as select NGOs in money lending business at high rates of interest to rebuild ...

Editorial »

CID man held with Yaba: Virus in the antidote

A CONSTABLE of Criminal Investigation Department and one of his associates were arrested with 990 Yaba pills from Savar on Thursday evening, some newspapers reported. The arrestees are Taijuddin, a constable of CID's Uttara Zone, and his associate Mofiz Mia, said Officer-in-Charge of Detective Branch of Police in Dhaka (North). ...

Cricket »

Ton-up Kohli hails Moeen for crucial IPL win

AFP, Kolkata :Virat Kohli scored his first Indian Premier League (IPL) century of the year, then paid tribute Saturday to Royal Challengers Bangalore teammate Moeen Ali for setting up a crucial second win of the season."Moeen changed the game completely and that allowed me to play my game," said the ...

Entertainment »

Farah Khan to remake three Bollywood classics?

Bollywood filmmaker Farah Khan had recently announced that she will be collaborating with ace director, Rohit Shetty. Speculations are that the duo has decided to remake the much loved film that had megastar Amitabh Bachchan, Satte Pe Satta (1982). The film itself was a remake as well, and besides this, ...

International »

Trump rating drops 3 points to 2019 low post Mueller report

Reuters, New York  :The number of Americans who approve of President Donald Trump dropped by 3 percentage points to the lowest level of the year following the release of a special counsel report detailing Russian interference in the last U.S. presidential election, according to an exclusive Reuters/ Ipsos public opinion ...

Football »

FIFA backs English players' social media boycott over racism

AP, England :FIFA is backing a 24-hour social media boycott by professional players in England in a protest against racial abuse and revealed plans for a new global campaign to eradicate discrimination in soccer.Following a series of high-profile cases in recent weeks, the Professional Footballers' Association has gathered support from ...

International »

US President Trump declares victory on Mueller report D-Day

President Donald Trump, backed by his attorney general, declared himself fully vindicated on Thursday in the investigation into Russian election meddling and alleged collusion with his campaign - even before the American people and lawmakers see the full probe report."Game Over," Trump tweeted, using a "Game of Thrones" style montage ...

Entertainment »

Shanta Jahan in Australia for hosting

Sheikh Arif Bulbon :Shanta Jahan is a popular host of present time. Though she acts sometimes but always feels comfortable to present herself as a host to all. For the first time Shanta went to Australia to host a show. She left Dhaka at night on April 18. Today is ...

Editorial »

One is punished for another's sin!

LOCAL media reported that a day labourer was allegedly sent to jail on Wednesday for not paying electricity bill of Tk 4007, even though his house at Mochagora village in Muradnagar upazila in Cumilla district had no electrical line. On Thursday evening, Chief Judicial Magistrate granted him bail after hearing ...

Cricket »

Sri Lanka dump Chandimal, bring back Thirimanne for World Cup

AFP, Colombo :Sri Lanka Thursday dumped established stars including former captain Dinesh Chandimal to hand batsman Lahiru Thirimanne and leg-spinner Jeffrey Vandersay a place in their World Cup squad.Chandimal, who was one-day captain until last October, wicketkeeper-batsman Niroshan Dickwella, off-spinner Akila Dananjaya, openers Danushka Gunathilaka and Upul Tharanga were all ...

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