Kamal sits with state banks today

Finance Minister AHM Mustafa Kamal will sit with the chairmen and chief executive officers of the state-owned commercial and specialised banks today to take stock of the overall situation of the financial sector.   

The meeting is being convened as six of the eight state banks faced a capital shortfall in the first quarter of the year.

Bangladesh Bank Governor Fazle Kabir is also expected to attend the meeting at the conference room of the finance division, according to a statement. 

The state-run commercial banks are Sonali, Janata, Agrani, Rupali and BASIC, while the specialised state banks are Bangladesh Krishi, Rajshahi Krishi Unnayan and Bangladesh Development Bank. 

As of March, Agrani, BASIC, Janata, Rupali, Bangladesh Krishi and Rajshahi Krishi Unnayan had a combined capital shortfall of Tk 15,953.41 crore, Bangladesh Bank data shows.

The government injects capital into the state banks every year but there has been no improvement in their capital base or their corporate governance, according to experts. 

In the last 17 years, the government has injected a total of Tk 20,584 crore into the state banks. This year, it will provide Tk 1,500 crore.