Asif Showkat
Three state-owned banks, among four have targeted 231 loss-making branches to make them profitable by this year. The SOBs are Sonali, Janata and Agrani banks.
Sonali Bank, the largest of the SOBs with 1,181 branches, had the most 439 loss-making branches in 2007 and the reform measures brought the number down to 191, sources said adding that authorities had a plan to reduce the number to 100.
Janata Bank had a total of 848 branches in 2007 with 149 loss-making ones. Reform process brought down the number of loss-making branches to 95. Initiatives have been taken to bring down the number to 50 by this year.
Of the 866 branches of Agrani Bank, 90 were loss-making until last year. Reforms during 2008 could bring down the number to 81, sources said.
The performance of state-owned banks has apparently improved thanks to the corporatisation and some other effective measures by the concerned authorities, but the number of loss-making branches is still higher than the branches those have so far been made profitable ones.
At the end of 2008, some 401 of the total 3,390 branches of the Sonali, Janata, Agrani and Rupali banks remained loss-making when 318 branches were made profitable.
‘We have implemented a number of plans to make profit from the loss-making branches and received a good response,’ Agrani Bank managing director Syed Abu Nasir Bukhtear Ahmed told New Age.
‘Directives to raise deposit and reduce classified loans of the branches have also given to the managers of the loss-making branches,’ he added.
‘Loss-making branches have been asked to make strong commitments in order to reduce deficit,’ said Bukhtear.
Top officials of SOBs said they had decided to engage the loss-making branches in more business instead of shutting their doors.
Sources said three SOBs turned their loss–making branches into profitable after their corporatisation.
Courtesy of www.newagebd.com
