Kazi Zahidul Hasan :
Sonali Bank Limited (SBL), the country’s largest public commercial bank, is suffering from an acute capital shortfall because of large loan forgeries by several entrepreneurs and business groups, official sources said.
They said, the bank’s performance has been poor in recent years due to soaring classified loans and the bank has failed to deliver normal business activities.
According to an official figure, the capital shortfall of Sonali Bank reached new height of Tk 2,678 crore as on June rising from Tk 599 crore as on March 31.
The figure indicates that capital shortfall of Sonali Bank increased by fourfold just in a quarter.
“Our normal banking activities are being hampered badly due to the mounting capital shortfall,” a senior SBL official told The New Nation on Friday preferring anonymity.
He said, “Big loan forgeries by Hall-Mark and Bismillah Group and swelling Non-performing Loans (NPLs) have hit SBL’s capital base. As a result, it is affecting the bank’s overall lending business.
When asked, the SBL official said, as the capital base of Sonali Bank is very poor at this moment, we have sought recapitalisation from the government.
“Once the government allocates more funds for its recapitalisation, it will help the bank fill its capital hole,” he mentioned.
Meanwhile, the central bank officials have said that the capital crunch of Sonali Bank might worsen further following an upturn in its classified loans in the third quarter of the current calendar year.
“We have asked the Sonali Bank for taking necessary measures to improve their financial health by reducing the amount of classified loans,” a senior BB official told The New Nation on Friday.
He said, the authorities of the bank have been asked to act in line with the memorandum of understanding (MoU) signed earlier with BB.
“They have also been asked to take effective measures for improving internal control to prevent loan forgeries in future. Directive has also been given to gear up the drive for recovering outstanding and bad loans,” he noted.
Sonali Bank Limited (SBL), the country’s largest public commercial bank, is suffering from an acute capital shortfall because of large loan forgeries by several entrepreneurs and business groups, official sources said.
They said, the bank’s performance has been poor in recent years due to soaring classified loans and the bank has failed to deliver normal business activities.
According to an official figure, the capital shortfall of Sonali Bank reached new height of Tk 2,678 crore as on June rising from Tk 599 crore as on March 31.
The figure indicates that capital shortfall of Sonali Bank increased by fourfold just in a quarter.
“Our normal banking activities are being hampered badly due to the mounting capital shortfall,” a senior SBL official told The New Nation on Friday preferring anonymity.
He said, “Big loan forgeries by Hall-Mark and Bismillah Group and swelling Non-performing Loans (NPLs) have hit SBL’s capital base. As a result, it is affecting the bank’s overall lending business.
When asked, the SBL official said, as the capital base of Sonali Bank is very poor at this moment, we have sought recapitalisation from the government.
“Once the government allocates more funds for its recapitalisation, it will help the bank fill its capital hole,” he mentioned.
Meanwhile, the central bank officials have said that the capital crunch of Sonali Bank might worsen further following an upturn in its classified loans in the third quarter of the current calendar year.
“We have asked the Sonali Bank for taking necessary measures to improve their financial health by reducing the amount of classified loans,” a senior BB official told The New Nation on Friday.
He said, the authorities of the bank have been asked to act in line with the memorandum of understanding (MoU) signed earlier with BB.
“They have also been asked to take effective measures for improving internal control to prevent loan forgeries in future. Directive has also been given to gear up the drive for recovering outstanding and bad loans,” he noted.
