Following the Covid epidemic, two out of six state-owned commercial banks failed to meet their yearly performance indicator to minimise defaulted loans in the previous financial year.
Janata and Bangladesh Small Industries, and Commerce Bank Limited are the banks.
Due to the failure of Janata and BASIC banks, four other banks — Sonali, Agrani, Rupali, and Bangladesh Development Bank Limited — were successful in keeping their defaulted loan within their respective targets. However, the defaulted loan increased by Tk 3,950 crore from the over a target of Tk 38,300 crore.
Rupali Bank successfully met its targets for providing loans to affected firms as part of the government’s stimulus package following the pandemic outbreak. They’ve disbursed Tk 4,828.71 crore out of a total target of Tk 4,760 crore.
After FY21, Janata’s defaulted loans totalled Tk 13,692.88 crore, nearly three times its aim of TK 10,000 crore.
Although it was expected that BASIC’s defaulted debt would remain at Tk 7,500 crore, it surged to Tk 7,980 crore.
State-owned banks’ defaulted loans account for over 40 per cent of the total bad loan portfolio in the banking sector.
Janata Bank recovered 303 crores in bad loans against 400 crores, Agarani 252 crore against a target of 400 crores, and Rupali 67.29 crore against a target of 140 crores.
In addition, BASIC recovered Tk 48 crore in bad loans against a target of Tk 125 crore, and BDBL recovered Tk 32 crore against a target of Tk 40 crore.
Source: New Age