Banks' capital rises

Banks' overall capital increased 1.94 percent in the third quarter compared to the previous quarter, as asset quality of most banks improved.
On September 30, their capital was Tk 64,932 crore, which is 10.57 percent of their total risk-weighted assets. The amount was Tk 63,694 crore on June 31.
In line with international standards, banks have to maintain a capital adequacy ratio (CAR) of 10 percent against their risk-weighted assets.

The total capital of state-owned commercial banks increased around 3 percent to Tk 9,531 crore in September as the capital of the banks, except Sonali Bank, marked a rise.
Their CAR now stands at 8.66 percent, which was 8.05 percent three months back, as a result of the overall hike in capital.
The capital shortfall of Sonali stood at Tk 1,730 crore. State-owned specialised banks, except Bangladesh Development Bank, had no capital at the end of September, rather they had negative capital that almost doubled to Tk 8,213 crore.
At the end of June, their negative capital was Tk 4,338 crore.
Of the capital shortfall, BASIC Bank alone accounted for Tk 2,257 crore, while it was Tk 6,090 crore for Krishi Bank, according to central bank statistics.
Of the private banks, three -- Bangladesh Commerce Bank, Premier Bank and ICB Islamic Bank -- saw capital shortfall.
The overall capital of the private banks at the end of September was Tk 51,617 crore, which was 11.99 percent of their risk-weighted assets.
Except for one bank, the foreign banks' capital situation was healthy. On an average, their CAR was 20.61 percent.