State-owned Janata Bank is seeking a Tk 200 billion bailout to address a severe capital shortfall caused by alleged lending irregularities, primarily involving large business groups like Beximco and S Alam. These groups collectively account for over 45% of the bank’s loans, much of which are now classified as non-performing, leading to a capital shortfall of Tk 340 billion and NPLs totaling Tk 605 billion. The bank’s liquidity crisis has worsened, with its debt-deposit ratio at 88.26% and its capital adequacy ratio at a negative 19.36%. For the first time, the bank reported losses in FY25, projected to exceed Tk 25 billion by year-end. The bank has proposed Tk 100 billion in recapitalization funds and another Tk 100 billion in loan support to stabilize operations and rebuild lending capacity, emphasizing the urgency to prevent further reputational and operational damage.
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