Bangladesh Bank on Thursday expressed dissatisfaction over the increase in defaulted loans at the BASIC Bank in July-September quarter even after the bank had signed a deal with the central bank to reduce the non-performing loans in July.
The BB also asked the state-owned bank to take immediate measures to reduce the defaulted loans, said officials of the central bank.
The BB in July asked the BASIC Bank to reduce its classified or defaulted loan to five per cent of its total outstanding loans and advances by December from 9.38 per cent.
The BASIC Bank signed a memorandum of understanding with the BB as the financial health of the bank declined significantly over the last and half years due to loan scam and corruption.
But the classified loan at the BASIC Bank increased by 101.77 per cent to Tk 1,863.33 crore as of September 30 from Tk 923.47 crore as of June 30.
The percentage ratio of the defaulted loan at the bank increased to18.43 per cent of the total outstanding loan amounting to Tk 10,112 crore as of September 30 from 9.38 per cent of Tk 9,848.38 crore as of June 30.
BB officials at a meeting with BASIC Bank officials on Thursday expressed dismay over such a big jump in the defaulted loans in one quarter.
BB deputy governor Abu Hena Mohd Razee Hassan presided over the meeting while another deputy governor SK Sur Chowdhury and BASIC Bank managing director Kazi Faqurul Islam, among others, were present.
Razee Hassan told New Age that the BB raised questions why the BASIC bank’s defaulted had increased in the last quarter (July-September).
The BB asked the bank to take measure to reduce the defaulted loan in the quickest possible time in accordance with the MoU, he said.
He said, ‘We have sought more information from the BASIC Bank. After taking information, the central bank will give fresh instruction to the bank.’
Besides, the BB also asked the bank to take measure to make up its capital shortfall by December.
The provision shortfall against the loans and advances of the BASIC Bank also increased to Tk 303.74 crore as of September 30 from a balanced position as of June 30.
According to the MoU, the BASIC Bank will have to make up its capital shortfall completely by December, but the shortfall of the bank did not improve much in September.
-With New Age input
