According to Bangladesh Bank (BB) statistics, of the shortfall, capital shortfall was Tk3702 crore and provision shortfall Tk4370crore.

Officials of the NCBs said although their earning and profit increased because of rise in default loans, the capital shortfall marked a rise.

If the government does not inject capital, it will be too tough to cover up the huge cumulative shortfall, the officials anticipated.

Sonali Bank accounts for around 50 percent of the total deficit of the nationalised banks.

The bank's capital shortfall rose this year, although the government provided Tk400crore to raise capital of the bank last month. In 2005, the government provided Tk500crore to inject capital for Sonali Bank.

The government is very much cautious about adequate capital of this bank as it is the biggest state-owned bank.

However, as the government decided to sell off Rupali Bank, there is no plan to raise its capital at this stage. The new buyer of the bank may inject its capital after its takeover.

On the other hand, other two banks--Janata and Agrani-- are managing their capital from its own resources.

Sonali Bank's overall capital shortfall rose to Tk3853 crore until December 2006, whereas the provision shortfall was Tk2977crore. The overall shortfall of the bank in the previous year was Tk3, 828crore.

Sources in the bank said its capital shortfall rose, as the bank has not added its earnings of interest to the income due to classified loans.

The bank also faces liquidity crisis because it is yet to realise huge outstanding loans from the Bangladesh Petroleum Corporation (BPC).

The bank had to borrow Tk1065crore from call money market until May 2007 due to such crisis. As a result, the bank has to pay penal interest to the lenders.

Agrani Bank's overall capital shortfall decreased and stood at Tk2048crore in 2006, which was Tk2411crore in 2005. The bank had no provision shortfall during the period, it had enjoyed Tk19crore provision surplus during the time.

Janata Bank's overall capital shortfall increased to Tk1162crore, which was Tk795crore the previous year.

The drastic rise in provision shortfall of Tk788 crore resulted in the bank's huge capital shortfall. The provision shortfall of the bank was Tk391crore in 2005

The Rupali Bank's overall capital shortfall reached Tk990 in 2006, which was Tk466crore in 2005.

The operating profit of the four state-owned banks stood at Tk1105core. But due to huge provision shortfall, the banks' net profit was nil in the year 2006.