Mohammad Badrul Ahsan :
Faster growth of default loans widened capital shortfall in all state-owned commercial banks (SCBs) in June this year from December last, latest data released by the central bank showed.
Of the four state-owned banks, Sonali and Janata were in surplus capital while Agrani and Rupali plunged in shortfall in December last year.
In the latest capital statement prepared by Bangladesh Bank in June this year, all the four banks fell in capital shortage.
The shortfall of the four banks increased by around Tk3,993 crore to Tk4,256 as of June from Tk263 crore in December last year, according to the central bank data.
The capital base of the state banks deteriorated in June this year due to rise in default loans.
The ratio of capital to risk-weighted assets came down to far below the requirement of 10 percent set by Bangladesh Bank in accordance with the Basel-2 rules.
The largest state-owned Sonali Bank fell in capital shortfall of Tk2,605 crore in June this year from its earlier surplus amount of Tk31.30 crore in December last year.
The capital base of the bank deteriorated to 4 percent in June which was 10.08 percent in December.
Janata bank was in capital surplus of Tk56.58 crore in December with its standard capital adequacy ratio of 10.15 percent, but it turned into capital shortfall of Tk664 crore in June this year with its capital base ratio coming down to 8.28 percent, far below the regulatory requirement of 10 percent.
The capital shortfall of Agrani bank widened to Tk199.54 crore in June this year from Tk123 crore in December last year.
The capital base ratio dropped slightly to 9.28 percent from 9.54 percent during the same period.
Rupali Bank experienced a huge shortfall of Tk1,052 crore in June this year which was only Tk228 crore in December last year.
The bank remained in more vulnerable position with the lowest capital base ratio of 3.53 percent in June from 8.48 percent in December last year.
The capital adequacy ratio of banking sector stood at 10.74 percent in June this year.
The state banks could not improve their capital base despite repeated warning from the global lending organisations, IMF and World Bank, said a senior executive of Bangladesh Bank, preferring not to be named.
The main reason the BB official addressed behind this is a set of irregularities in loan disbursement, he said.
Bangladesh Bank is also concerned about these weak capital bases of the state-owned banks, he added.
The scam-hit BASIC Bank improved its capital base slightly as its shortfall amount was declining gradually. The capital shortfall of BASIC Bank slightly improved to Tk2,286 crore as of June this year compared to Tk2,991 crore in September last year.
The bank experienced the highest capital shortfall of Tk3,609 crore in December 2014, according to the Bangladesh Bank data.
Faster growth of default loans widened capital shortfall in all state-owned commercial banks (SCBs) in June this year from December last, latest data released by the central bank showed.
Of the four state-owned banks, Sonali and Janata were in surplus capital while Agrani and Rupali plunged in shortfall in December last year.
In the latest capital statement prepared by Bangladesh Bank in June this year, all the four banks fell in capital shortage.
The shortfall of the four banks increased by around Tk3,993 crore to Tk4,256 as of June from Tk263 crore in December last year, according to the central bank data.
The capital base of the state banks deteriorated in June this year due to rise in default loans.
The ratio of capital to risk-weighted assets came down to far below the requirement of 10 percent set by Bangladesh Bank in accordance with the Basel-2 rules.
The largest state-owned Sonali Bank fell in capital shortfall of Tk2,605 crore in June this year from its earlier surplus amount of Tk31.30 crore in December last year.
The capital base of the bank deteriorated to 4 percent in June which was 10.08 percent in December.
Janata bank was in capital surplus of Tk56.58 crore in December with its standard capital adequacy ratio of 10.15 percent, but it turned into capital shortfall of Tk664 crore in June this year with its capital base ratio coming down to 8.28 percent, far below the regulatory requirement of 10 percent.
The capital shortfall of Agrani bank widened to Tk199.54 crore in June this year from Tk123 crore in December last year.
The capital base ratio dropped slightly to 9.28 percent from 9.54 percent during the same period.
Rupali Bank experienced a huge shortfall of Tk1,052 crore in June this year which was only Tk228 crore in December last year.
The bank remained in more vulnerable position with the lowest capital base ratio of 3.53 percent in June from 8.48 percent in December last year.
The capital adequacy ratio of banking sector stood at 10.74 percent in June this year.
The state banks could not improve their capital base despite repeated warning from the global lending organisations, IMF and World Bank, said a senior executive of Bangladesh Bank, preferring not to be named.
The main reason the BB official addressed behind this is a set of irregularities in loan disbursement, he said.
Bangladesh Bank is also concerned about these weak capital bases of the state-owned banks, he added.
The scam-hit BASIC Bank improved its capital base slightly as its shortfall amount was declining gradually. The capital shortfall of BASIC Bank slightly improved to Tk2,286 crore as of June this year compared to Tk2,991 crore in September last year.
The bank experienced the highest capital shortfall of Tk3,609 crore in December 2014, according to the Bangladesh Bank data.
