Kazi Zahidul Hasan :
The government once again is going to inject fresh capital into the crisis-ridden public banks to meet their capital shortfall, officials said.
“Six public banks out of eight are now running with capital shortfall. So, they will be provided with fresh capital under the government’s capital infusion programme,” a senior official at Bank and Financial Institutions Division (BFID) told The New Nation on Thursday, asking not to be named.
According to him, the cumulative capital shortfall of the six public banks reached Tk Tk14,054 crore at the end of December 2015.
“This time the government will disburse Tk2000 crore to five public banks from the budgetary allocation of Tk 5000 crore,” he added.
Earlier, the he government set aside Tk5000 crore allocation in the current budget to cover up capital shortfall of the state-owned bank.
But it has recently decided to cut Tk3,000 crore from the Tk 5000 crore budgetary allocation in the wake of revenue shortfall.
“The amount (Tk2000 crore) would be disbursed among Basic Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commercial Bank and Ansar VDP Bank,” said the BFID official.
He further said that the funds would be disbursed to these public banks soon with applying stringent terms and conditions.
Justifying the need for the bank’s recapitalisation programme, he said, “These state-owned banks are now operating with huge capital shortfall resulted from recent loan scams and rising bad and defaults loans in their overall credit portfolios. This has led to weaken financial health of the banks, squeezing their ability to expand lending activities”.
Considering the fact, the government has decided to inject fresh capital into them.
As on December 2015, Bangladesh Krishi Bank had the highest capital shortfall of Tk6,676 crore, followed by Basic Bank Tk3,050 crore, Sonali Bank Tk2,934 crore, Janata Bank Tk663.24 crore, Rajshahi Krishi Unnayan Bank Tk582.94 crore and Rupali Bank Tk145.50 crore. Only Agrani and Bangladesh Development Banks were in the surplus in the said period.
The government once again is going to inject fresh capital into the crisis-ridden public banks to meet their capital shortfall, officials said.
“Six public banks out of eight are now running with capital shortfall. So, they will be provided with fresh capital under the government’s capital infusion programme,” a senior official at Bank and Financial Institutions Division (BFID) told The New Nation on Thursday, asking not to be named.
According to him, the cumulative capital shortfall of the six public banks reached Tk Tk14,054 crore at the end of December 2015.
“This time the government will disburse Tk2000 crore to five public banks from the budgetary allocation of Tk 5000 crore,” he added.
Earlier, the he government set aside Tk5000 crore allocation in the current budget to cover up capital shortfall of the state-owned bank.
But it has recently decided to cut Tk3,000 crore from the Tk 5000 crore budgetary allocation in the wake of revenue shortfall.
“The amount (Tk2000 crore) would be disbursed among Basic Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commercial Bank and Ansar VDP Bank,” said the BFID official.
He further said that the funds would be disbursed to these public banks soon with applying stringent terms and conditions.
Justifying the need for the bank’s recapitalisation programme, he said, “These state-owned banks are now operating with huge capital shortfall resulted from recent loan scams and rising bad and defaults loans in their overall credit portfolios. This has led to weaken financial health of the banks, squeezing their ability to expand lending activities”.
Considering the fact, the government has decided to inject fresh capital into them.
As on December 2015, Bangladesh Krishi Bank had the highest capital shortfall of Tk6,676 crore, followed by Basic Bank Tk3,050 crore, Sonali Bank Tk2,934 crore, Janata Bank Tk663.24 crore, Rajshahi Krishi Unnayan Bank Tk582.94 crore and Rupali Bank Tk145.50 crore. Only Agrani and Bangladesh Development Banks were in the surplus in the said period.
