'Defaulted loans not high if compared to neighbouring countries'
The amount of defaulted loans in the country's banking sector is not that high in context to that faced by neighbouring nations, said Bangladesh Bank Governor Fazle Kabir yesterday.
Some organisations tried to show off defaulted loans in the country's banking sector by way of including rescheduled loans and written-off loans, he said, adding, "But rescheduling is an ongoing process."
He was addressing as chief guest an annual conference of state lender Sonali Bank at Bangabandhu International Conference Centre.
Mentioning the downward trend of defaulted loans, he said it stood at 9.32 per cent of the total outstanding loans in December last year, down from 11.99 per cent three months earlier.
Defaulted loans in India earlier also increased but now such loans have decreased remarkably, said Kabir.
If defaulted loans increase, banks face some problems such as liquidity crunch and a squeeze in their capacity to give out loans, he said.
"Banks should lay emphasis on stopping fund diversions. And they have to take initiative to tackle forced loans," he said.
He said Sonali Bank officials were apprehensive and hesitant on disbursing fresh loans after the Hallmark scam.
There will be no problem if loans are disbursed by properly following rules, he said.
"Some loans may turn into special mention account or doubtful loans if banks disburse funds. This is a regular phenomenon. But you should not stop loan disbursement," he said.
Finance Minister AHM Mustafa Kamal addressed as chief guest and Sonali Bank Chairman Ziaul Hasan Siddiqui and Managing Director Md Ataur Rahman Prodhan also spoke among others.
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