Exim Bank Launches Bangla QR Bill Payments

The rising remittance dollar rate has pushed the exchange rate for import LC settlements to Tk123.80-125, raising concerns about higher import costs and inflation. Banks are buying remittance dollars at Tk124.80-125.60, a sharp increase in recent days due to surging demand.

The financial stability of 18 banks is at risk as their top three borrowers may default on loans, warns a central bank report. Such defaults could trigger a liquidity crisis, with these banks already struggling to maintain the minimum Capital to Risk (Weighted) Assets Ratio (CRAR). Currently, 11 out of 61 banks fall below the 10% CRAR benchmark, highlighting systemic fragility.

Premier Leasing & Finance Limited faces significant financial challenges, with its auditor raising serious concerns about its ability to continue operations. Over the past four years, the company has incurred cumulative losses of Tk 8.71 billion, driven by a high volume of classified loans (72.5% of total loans), a negative capital adequacy ratio of -41.14%, and excessive liabilities.

Deposits in Bangladesh’s non-bank financial institutions (NBFIs) decreased by Tk 68 crore in the July-September period, falling to Tk 47,838 crore. This decline, attributed to a lack of customer trust, follows issues like loan irregularities, capital erosion, and mismanagement.

Cash held outside the banking system has started to decline after a 10-month surge, decreasing by Tk5,743 crore in October, bringing the total to Tk2.78 lakh crore. Bankers attribute this to the gradual restoration of customer confidence in banks and reduced financial irregularities under the interim government. Central bank data indicates a reduction from Tk2.84 lakh crore in September, following a peak of Tk2.92 lakh crore in July 2024.

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.