Irregularities, corruption, and mismanagement have led to a rise in defaulted loans at Ansar-VDP Development Bank, with the default rate reaching around 13% in December 2023, up from 9.73% six months prior. The bank, operating since 1996 with 259 branches, is severely understaffed, with one-third of its branches managed by just one person. As of December 2023, 12.66% of its loans, amounting to Tk 230 crore out of Tk 1,817 crore, were defaulted. Efforts to reduce defaults have been ineffective, and the bank lacks a proper IT-based accounting and monitoring system. Furthermore, outdated Core Banking Software (CBS) and poor data management have hindered transparency and accountability. Share sales to increase capital are ongoing, but dividend payments are delayed. The bank’s management needs significant improvement, with suggestions to recruit experienced bankers from other institutions to address the issues.
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