BB summons CEOs of 7 banks | The Daily Star
12:00 AM, June 12, 2019 / LAST MODIFIED: 12:42 AM, June 12, 2019


BB summons CEOs of 7 banks

The central bank yesterday summoned the chief executive officers of seven commercial banks after their default loans rose alarmingly in the first quarter of 2019.

The seven lenders, which include four state-run banks, were asked to bring down the default loans at the earliest to ensure sound financial health.

The Bangladesh Bank gave the instruction at a meeting at its headquarters in Dhaka in presence of Senior Secretary to the Banking Division Asadul Islam. Fazle Kabir, BB governor, presided over the meeting.

The banks are Sonali, Janata, Agrani, Rupali, National, Islami Bank Bangladesh and Al-Arafah.

The central bank asked the banks to take prompt measures to arrest the default loans, said Md Serajul Islam, spokesperson of the central bank.

The banks have claimed that a big portion of their loans became classified after writ petitions filed by some borrowers with the High Court against their defaulter status were vacated, he said.

The banks were asked to speed up the recovery of non-performing loans, Islam said.

The central bank also formed an inter-departmental committee to evaluate the causes of the upward trend of the default loans. The committee has been asked to submit a report in the quickest possible time delineating ways to bring down the classified loans.

Default loans in the banking sector stood at Tk 110,874 crore as of March, up from Tk 93,911 crore three months earlier.

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