State-run Sonali Bank, Janata Bank, and Agrani Bank have failed to replenish their capital shortfalls as per their action plans submitted to the Bangladesh Bank. In 2022 during a memorandum of understanding (MoU) meeting, the central bank asked four state-owned commercial banks to submit action plans describing how they would meet their capital shortfalls. While Rupali Bank achieved its target, the three aforementioned banks failed to implement their plans.
Sonali Bank’s required minimum capital stood at Tk 6,853 crore at the end of 2022, but its regulatory capital amounted to Tk 5,021 crore. As a result, its capital shortfall was Tk 1,832 crore. Janata Bank’s required minimum capital was Tk 8,082 crore and regulatory capital, including regulatory forbearance, was Tk 6,582 crore in December 2022, resulting in a capital shortfall of Tk 1,500 crore. On the other hand, Agrani Bank’s actual regulatory capital was negative Tk 1,500 crore. The IMF has expressed dissatisfaction over the weak capital base of state-run banks and their recapitalization during meetings with different stakeholders.