The state-controlled BASIC Bank is seeking to reduce its classified loans to a drastic 10 per cent in less than two years by June, 2016 as more than 40 per cent non-performing loans of the scam-hit bank badly dented its corporate image. In a frantic move to reshape the financial health of the once best-performing public sector bank in the country, the reconstituted board in a meeting in late September finalised a nine-point action plan for June, 2016, sources said.
The bank has a total of Tk 4,560 crore defaulted loan out of the total loans of around Tk 11,260 crore.
The bank is planning to recover 90 per cent of the defaulted loans by June, 2016.
BASIC in its short-term outlook set a target of Tk 630 crore to be recovered by December this year.
‘We are serious about restoring our image as one of the best banks. All-out efforts would be made to achieve both short- and long-term targets to shore up the bank,’ BASIC director Mojibur Rahman told New Age last week.
‘Both bankers and directors of the bank should be serious about their respective jobs,’ he added.
The action plan envisages vigorous actions against errant and corrupt staff members of the bank by the deadline of June, 2016, fresh lending of Tk 3,000 crore, increasing the present 11 per cent small deposits of up to Tk 50 lakh to 25 per cent of the total deposit with the bank and increase in the operating profit of the BASIC to Tk 150 crore by the middle of 2016.
The plan for BASIC further said that its reserve would rise to Tk 400 crore, net profit to increase to Tk 150 crore and manpower would be rationalised by the deadline.
BASIC was reconstituted in July after its controversial board directors, including the former chairman, were removed for loan scams above Tk 4,000 crore.
The capital shortfall of the bank stood at Tk 1,676 crore as of June as non-performing loans hit a record level of Tk 4,560 crore during the period. The bank’s 34 branches out of a total 68 have been counting losses.
The bank has recently sought Tk 1,372 crore from the finance ministry to meet its capital deficit.
Finance ministry officials said they had been monitoring closely the development of the bank under the new leadership and new board.
-With New Age input
