The capital shortfall of 11 banks in Bangladesh, including state-run institutions, has increased by Tk2,873 crore to Tk33,575 crore due to rising bad loans, as per the latest Bangladesh Bank report. The state-run lenders in capital shortfall are Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, BASIC Bank, Bangladesh Krishi Bank, and Rajshahi Krishi Unnayan Bank. Of them, Bangladesh Krishi Bank has the highest shortfall of Tk14,094 crore. Their shortfalls amount to Tk28,117 crore. To address the crisis, experts urge the government to inject capital into these banks and emphasize the importance of preventing future default loans. The banking sector’s Capital Adequacy Ratio (CAR) also dropped from 11.83% in December to 11.23% in March, highlighting the need for regulatory attention. Rescheduling defaulted loans in December contributes to the increase in non-performing loans and capital shortfalls observed in the March quarter.
11 Banks Encounter Rising Capital Shortfall of Tk33,575 Crore
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