Kamruzzaman Bablu :
Number of good borrowers in banking sector is decreasing gradually as only four banks provided interest rebate to only 36 borrowers for their satisfactory records as of July 2016, sources said.
Among 56 state-owned, private and foreign commercial banks in the country, only 36 have reported to the central bank that they did not find any good borrowers in the year of 2015.
Besides, some 16 banks kept lump sum provisions against potential payable interest rebate last year, but could not pay a single penny for want of good borrowers in last year.
However, the four banks who gave interest rebate to their good borrowers are- Islami Bank Bangladesh Limited (IBBL), Mutual Trust Bank Limited (MTBL), Rajshahi Krishi Unnayan Bank (RAKUB) and Hong Kong Shangri Banking Corporation (HSBC).
Earlier on July 28 in last year, the central bank asked all scheduled banks to provide information about good borrowers including the number of good borrowers, amount of interest rebate and provisions maintained against potential payable rebate.
In response to the Bangladesh Bank’s instruction, 53 banks have reported their status but three of them Sonali, Prime and Dhaka Bank did not respond.
The total provision maintained by 16 banks against their potential payable rebate was Tk72.76 crore last year, of which Islami bank provided interest rebate of around Tk11 crore, MTBL Tk1 crore and RAKUB around Tk2 lakh, according to the central bank data.
Bangladesh Bank (BB) moved against the bank’s reluctance to help good borrowers.
The information includes the number of good borrowers with interest rebate and the amount of rebate given during 2015 and 2016.
The banks have been asked to determine potential good borrowers with interest rebate during the year 2015 and 2016.
The letter also warned that action will be taken against those banks that will not provide their good borrowers with interest rebate by the end of 2016.
Earlier in March in 2015, the central bank offered good borrowers 10 percent rebate on interest accrued against their loan accounts through issuing a circular.
According to the incentive package, the borrowers whose loan accounts remain unclassified continuously for three years and comply with all terms and conditions of approval will be entitled as good borrowers.
At the end of three years, good borrowers would receive 10 percent rebate on their loan interest for every previous year.
The benefit will continue if the clients are identified as good borrowers at the end of every year. The policy will remain valid till further instruction.
The circular also advised the banks to take measures to award good borrowers through an annual programme.
The central bank came up with a set of facilities to encourage good borrowers at the time when big defaulters were having blessings in many ways.
In January 2015, the central bank announced a special rescheduling policy for the defaulters of big loan worth over Tk500 crore.
In December 2013, Bangladesh Bank also relaxed the loan rescheduling policy to favour the big borrowers who failed to make instalment payment due to political turmoil.
BB observed that banks are willing to favour defaulters but reluctant to award good borrowers, said a senior executive of the central bank.
In this perspective, the central bank took a hard line and wanted to ensure benefit for good borrowers, he said.
The country’s banking sector has regularised a total of Tk1,13,775 crore loan from July 2013 to December 2015 during political turmoil following the national poll held on January 5, 2013.
Of the total amount, banks have rescheduled Tk82,392 crore and restructured Tk31,383 crore.
Of the rescheduled amount, a loan of Tk30,000 crore was regularised, taking the advantage of relaxed policy while Tk52,244 crore in compliance with the rescheduling policy.
Bangladesh Bank observed that the recovery of rescheduled loans under the relaxed policy was unsatisfactory.
