Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Wednesday, November 21, 2018 06:47:46 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Banking sector beleaguered with NPLs

Share your thought
Post a comment »
Read all () »

Special Correspondent  :
Experts on Tuesday expressed serious concern over the rising banking sectors' non-performing loans. They said it is happening only due to lack of good governance in the banking sector.
The amount of non-performing loans (NPLs) jumped up by over 20 per cent or Tk 15,037 crore at the end of June this year from December last year.
A Bangladesh Bank data shows, the amount of NPL stood at to Tk 89,340 crore as of June 30, 2018 from Tk 74,303 crore as of December 31 last.
"Swelling NPL is a major concern for the banking system. The adverse effect arising from NPL could be huge on banking sector as well as economy," former BB Governor Dr Salehuddin Ahmed told The New yesterday.
He said bad governance and corruption plague the banking sector and it is thereby pushing up the bad loans. Lack of proper oversight by the regulator is also responsible for the situation.
"Banking sector beleaguered with NPLs due to governance failure and mismanagement," former BB Deputy Governor Dr Khondoker Ibrahim Khaled told The New Nation.
He said public sector banks constituted a major portion of the banking sector's NPL as a result of large loan scams.    
"State-owned banks are facing image crisis due to large loan scams.  
Inefficiency of politically appointed directors and improper loan approvals are responsible for the repeated loan scams," he observed.
The total amount of NPLs with six state-owned commercial banks (SoCBs) rose to Tk 42,852 crore from Tk 37,326 crore on December 31 last. It was Tk 43,685 crore in the first quarter of 2018, shows the BB figure.
"Fundamental governance reforms should be brought in public banks to improve their financial conditions. But the best option could be leading them to path of privatization," said Dr Ibrahim Khaled.   
BB figure shows that the total amount of NPLs with 40 private commercial banks (PCBs) reached Tk 38,975 crore as of June 30 last from Tk 29,396 crore in the last quarter of 2017. It was Tk 37,289 crore as of Marc h 31 last.
The NPLs from nine foreign commercial banks (FCBs) rose to Tk 22.710 crore during the period under review from Tk 21,540 crore in December 2017. It was Tk 21,880 billion in the first quarter of 2018.
When asked, BB spokesperson Md Serajul Islam said that the central bank is continuously monitoring the lending practices by banks with a view to contain the volume of banking sectors' bad loans.
"Banks have been asked to take effective measures to reduce NPLs through strengthening their recovery drives," he added.

Add Rate

News Archive

Inside The New Nation

Editorial »

Smart schools to make education easier

FOR the first time in the country, the government on November 15 introduced the 'Smart School' at Pirpur village of Alokdia Union Parishad in Chuadanga Sadar Upazila spending Tk 5 lakh. The Smart School concept is comparatively a new idea in our country. But in the developed countries it is ...

City »

Jatiya Party Chairman Hussain Muhammad Ershad taking interview of the nomination seekers of the party for the eleventh parliamentary elections at its office in the city's Banani on Tuesday.


Entertainment »

#MeToo: Preity Zinta apologises for hurting sentiments

Preity Zinta has apologised for her views on the #MeToo movement during an interview with a Bollywood website. In a statement issued on Tuesday, the actor claimed that despite being a supporter of the movement, her comment was taken out of context."My reason for saying 'I wish something like this ...

International »

British PM`s N Irish allies up pressure over Brexit

AFP, London :British Prime Minister Theresa May gathers her new-look cabinet Tuesday, facing some relief from party plotting over Brexit but under fresh pressure from her Northern Irish allies.The Conservative leader holds her first cabinet meeting since two ministers quit last week over the divorce deal with the European Union, ...

Football »

Northern Ireland's Corry Evans (left) goes on to score against Austria during the UEFA Nations League soccer match between Northern Ireland and Austria at Windsor Park in Belfast on Sunday.

International »

HK democracy leaders pleaded not guilty in Umbrella movement trial

AFP :Three leading Hong Kong democracy campaigners pleaded not guilty on Monday to public nuisance charges over their involvement in massive rallies calling for political reform, as room for opposition in the semi-autonomous city shrinks under an assertive China.The pioneering trio are among nine activists all facing public nuisance charges ...

Editorial »

Four killed in Narsingdi: Who will take responsibility?

FOUR people were killed and 50 others injured in two separate clashes between two factions of locals in Raipura upazila of Narsingdi on Friday last. Of the dead Tofayel Rana -- an SSC examinee from Bashgari High School -- and three others Morom, Sohrab and Swapan were killed in gun ...

City »

Prime Minister's Security Affairs Adviser Major General (Retd) Tarique Ahmed Siddique and Chief of Naval Staff Admiral Nizamuddin Ahmed pose for a photo session with the participants of a seminar on ‘Maritime Good Governance towards Sustainable Development’ at Hotel Radisson Blu in the city on Monday.

Entertainment »

Mehazabien changes one`s life

Sheikh Arif Bulbon :Mehazabien Chowdhury has already established herself in the field of acting that directors always want to keep in engage with works. If Mehazabien likes story and character she always tries to work. After Mizanur Rahman Aryan’s Boro Chhele, Mehazabien became more selective in the selection of story ...

City »

Bangladesh Army Chief Aziz Ahmed inspcting parade on occasion of endorsing regimental colour to Adhoc 11 Bangladesh Infantry Regiment (Machanised ) at CMP Center and School Parade Ground in Savar Cantonment yesterday.

Cricket »

BCB President Nazmul Hassan assumes rotating ACC Presidency

President of Bangladesh Cricket Board (BCB) Nazmul Hassan Papon MP assumed the post of Asian Cricket Council (ACC) President for a two- year term at its Annual General Meeting held in the Pakistani city of Lahore on Saturday.Nazmul Hassan Papon is the 3rd ACC President from Bangladesh following in the ...

Cricket »

England win second Test against Sri Lanka to seal series

AFP, Kandy :Jack Leach's first five-wicket haul clinched an overwhelming win for England in the second Test against Sri Lanka on Sunday that sealed the series with a match to go.England needed just 30 minutes on the fifth day to take the final three wickets with Leach fittingly getting last ...

Editorial »

US-China trade war : An opportunity for BD to expand businesses and attract FDI

THE ongoing trade war between the US and China has created a better opportunity for Bangladesh, especially for garment sectors. The exporters have been receiving a greater number of work orders from both China and the US. The current trade war has opened an opportune moment for us (Bangladesh) as ...

International »

Sri Lankan President seeks talks to end power struggle

AFP, Colombo :Sri Lanka's President Maithripala Sirisena on Sunday called crucial talks with political leaders in a bid to end a power struggle with the prime minister he sacked last month.The Indian Ocean nation has been paralysed since October 26 when Sirisena deposed Ranil Wickremesinghe as premier and replaced him ...

International »

No ‘final conclusion’ on Khashoggi killing, say US

AFP, Washington  :The US government has not reached a final conclusion over the killing of Jamal Khashoggi, the State Department said Saturday following reports that the CIA had held the Saudi Crown Prince responsible."Recent reports indicating that the US government has made a final conclusion are inaccurate," State Department spokeswoman ...

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