Aisul Islam Noor :
The Finance Division under the Ministry of Finance is not willing to release Tk 2,000 crore for capital assistance to six State Owned Banks (SOBs), which are in capital shortage due to big volume of loan defaulter.
The Finance Division said that thousands of crores of taka has been given to these banks to meet the capital deficiency every year. But no positive change of the financial condition of these banks is yet to be seen. So, there is no logic to provide capital support for these banks every year.
Since this money belongs to the people, there is a matter of accountability in this case, it said.
According to the latest figures of the Ministry of Finance, these state owned banks have defaulted loans of Tk 37,500 crore so far.
The banks are Sonali Bank, Janata Bank, Rupali Bank, BASIC Bank, Bangladesh Agricultural Bank and Rajshahi Agriculture Development Bank.
Meanwhile, the Finance Ministry in a letter has requested the Finance Division to allocate Tk 2,000 crore to meet the capital shortage of the six state-run banks.
Sources said, the request letter under code No. 3-0934-0000-7113 asked to pay the money amounting to Tk 2,000 crore that was kept as an allocation in the budget for the financial year 2017-18. From this allocation, it is possible to make payment to six banks in the current fiscal year.
According to the demand, Tk 400 crore has sought to meet the deficit of the Sonali Bank, Tk 400 crore for Janata Bank, Tk 300 crore for Rupali Bank, Tk 300 crore for BASIC Bank, Tk 400 crore for capital shortage of Bangladesh Agricultural Bank and Tk 200 crore for Rajshahi Agriculture Development Bank.
When asked, an official of the Finance Division on condition of anonymity said that these banks are financed as capital assistance each year. Each time the payment was made under some conditions. These conditions
include strengthening the defaulting loan recovery and improving the management of the bank. But these conditions are never met in the literal sense.
As a result, the defaulting loans of these banks have increased. So, there is no logic to give them Tk 2,000 crore again, he said.
“We have to pay this money under political pressure. We try to stop, but there is no profit. However, banks will not be paid any money before May-June,” the official said.
According to the information received from Financial Institution Division of the Ministry of Finance, in the last four fiscal years, the government has provided Tk 10,666 crore to meet the capital deficit of different state owned banks. Tk 3,399 crore, a big portion of money was given to the BASIC Bank while Sonali Bank was given Tk 3003crore, the second highest allocation.
In the same way Janata Bank was given Tk 814 crore, Agrani Bank Tk 1081 crore, Rupali Bank Tk 310 crore, Bangladesh Krishi Bank Tk 729.86 crore.
The Finance Division under the Ministry of Finance is not willing to release Tk 2,000 crore for capital assistance to six State Owned Banks (SOBs), which are in capital shortage due to big volume of loan defaulter.
The Finance Division said that thousands of crores of taka has been given to these banks to meet the capital deficiency every year. But no positive change of the financial condition of these banks is yet to be seen. So, there is no logic to provide capital support for these banks every year.
Since this money belongs to the people, there is a matter of accountability in this case, it said.
According to the latest figures of the Ministry of Finance, these state owned banks have defaulted loans of Tk 37,500 crore so far.
The banks are Sonali Bank, Janata Bank, Rupali Bank, BASIC Bank, Bangladesh Agricultural Bank and Rajshahi Agriculture Development Bank.
Meanwhile, the Finance Ministry in a letter has requested the Finance Division to allocate Tk 2,000 crore to meet the capital shortage of the six state-run banks.
Sources said, the request letter under code No. 3-0934-0000-7113 asked to pay the money amounting to Tk 2,000 crore that was kept as an allocation in the budget for the financial year 2017-18. From this allocation, it is possible to make payment to six banks in the current fiscal year.
According to the demand, Tk 400 crore has sought to meet the deficit of the Sonali Bank, Tk 400 crore for Janata Bank, Tk 300 crore for Rupali Bank, Tk 300 crore for BASIC Bank, Tk 400 crore for capital shortage of Bangladesh Agricultural Bank and Tk 200 crore for Rajshahi Agriculture Development Bank.
When asked, an official of the Finance Division on condition of anonymity said that these banks are financed as capital assistance each year. Each time the payment was made under some conditions. These conditions
include strengthening the defaulting loan recovery and improving the management of the bank. But these conditions are never met in the literal sense.
As a result, the defaulting loans of these banks have increased. So, there is no logic to give them Tk 2,000 crore again, he said.
“We have to pay this money under political pressure. We try to stop, but there is no profit. However, banks will not be paid any money before May-June,” the official said.
According to the information received from Financial Institution Division of the Ministry of Finance, in the last four fiscal years, the government has provided Tk 10,666 crore to meet the capital deficit of different state owned banks. Tk 3,399 crore, a big portion of money was given to the BASIC Bank while Sonali Bank was given Tk 3003crore, the second highest allocation.
In the same way Janata Bank was given Tk 814 crore, Agrani Bank Tk 1081 crore, Rupali Bank Tk 310 crore, Bangladesh Krishi Bank Tk 729.86 crore.
