AS per a national daily, the non-performing loans in the banking sector again rose by Tk 11,994.06 crore to Tk 63,365.28 crore in the first six months of 2016 as the banks disbursed huge amount of loans on political consideration violating banking rules and regulations. The figure of default loans is ever increasing since the government handed the steering wheel of banking sector to its corrupt loyalists while recapitalizing the state-owned banks (SoBs) continues. In banking sector, the default loan called non-performing loan, but in reality the default loan is nothing but stealing of bank by politically influential persons as the government is undesirous to plug the hole. Despite, several loan scams in SoBs have riddled the government’s capacity to manage the banking sector, the government injecting money into the SoBs to keep them running.
Data showed the defaulted loans increased to Tk 52,518.96 crore as of June 30, this year from Tk 50,155.77 crore as of December 31, 2014. The default loan stood at 10.06 percent of the total outstanding loans of Tk 630,019.25 crore in the banking sector as of June 30. The default loans and the written-off loans together in the banking sector stood at Tk 104,802.55 crore at the end of the first half (January-June) of 2016. The banks wrote off uncollectible loans amounting to Tk 41,437.27 crore as of March 31, 2016. to show a lower portfolio of defaulted loans at their respective financial balance sheets, but the trend is harmful to the banks’ financial stability. Expert opined that default loans in the banking sector may increase soon as a number of banks disbursed loans to dubious persons.
The rising of default loan and the government’s inaction to the offenders continues for the last few years. But no measure or punitive action is seen as almost all the offenders are somehow related to the ruling party. Though the SoBs are obliged to appoint senior bankers to their high posts, the Finance Ministry has been appointing corrupted managing directors and chairmen to the state-run banks, which fuel the irregularities and defaulted loans.
The political interference has forced the banks to disburse loans to corrupted persons, putting an adverse impact on total defaulted loans. The government and the BB are now expressing concern only about the large amount of defaulted loans, but any appropriate measures to decrease the classified loans yet to be seen. A country’s financial sector could not be run by political elements who are indifferent to norms and laws and run the banks according to their whims and political interest. The prevailing situation should end soon but there is no visible sign as of now.
