Badrul Ahsan :
In the backdrop of capital inadequacy in seven state-owned commercial and specialized banks, the government is mulling a plan to keep special allocation worth Tk 20 billion for the struggling banks in the upcoming national budget, sources said.
Of the banks, much talked about BASIC Bank would get “special treatment” from the amount to meet its capital shortfall, they added.
The banks are: Sonali, BASIC, Janata, Agrani, Rupali, Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank, according to Bank and Financial Institutions Division Secretary Md Eunusur Rahman.
At present, the capital shortfall of Sonali Bank is Tk 2,606 crore, Agrani Bank Tk 200 crore, Rupali Tk 1,053 crore, BASIC Tk 2,286 crore, Bangladesh Development Bank Tk 737 crore, Bangladesh Krishi Bank Tk 7,485 crore and Rajshahi Krish Unnayan Bank Tk 705 crore.
Commenting on the special allocation, Finance Minister AMA Muhith said that the BASIC Bank, which fell into trouble after loan scams, would get “special treatment” in meeting capital shortfall.
“We are going to provide special treatment to BASIC Bank to help it come out of troubles,” the finance minister told The New Nation on Sunday.
“The bank needs extra nurturing as its condition is not normal now. It can’t be judged with others.”
The government plans to allocate Tk 2,000 crore in the next budget for the seven state-owned commercial and specialised banks suffering from capital shortfall, he said.
Muhith said, “Every state-owned bank is now more or less weak and is facing some sort of deficit in terms of capital or provision.”
However, the new management of BASIC Bank is “doing well and has already identified who “took money out of the bank,” Muhith said.
In reply to a question, the finance minister the Anti-Corruption Commission would take legal action against former BASIC Bank Board Chairman Sheikh Abdul Hye Bacchu who is accused of corruption.
“Wait and see! The ACC will take actions against former chairman of BASIC Bank,” he added.
At present, the government has kept Tk 2,000 crore in the current fiscal year’s budget for recapitalisation of the banks.
In this backdrop, the finance minister held a meeting with the top officials of the banks on Sunday to discuss their capital shortfalls. They talked about the decision whether to issue bonds in their favour.
Five state-owned banks are suffering a total Tk 15,000 crore capital shortfalls. These shortfalls were due to corruption and mismanagement in their operations, according to the data.
These banks have sought Tk 4,000 crore in the form of bonds from the government, shows an official paper sent to the finance minister. The five banks were given Tk 8,000 crore cash support during the FY2014-16 period to make up capital inadequacy.
In the financial scams that took place between 2011 and 2013, three of these banks – Sonali, Janata and BASIC – had lost Tk 12,000 crore.
Bangladesh Bank’s investigations found corrupt practices by Rupali Bank, Agrani Bank and specialised banks of the government.
