State-run commercial and specialised banks recovered Tk 3,152 crore of defaulted loans in the first nine months of fiscal 2016-17, Finance Minister AMA Muhith informed parliament yesterday.

Defaulted loans till March 31 amounted to Tk 41,401 crore while the number of defaulters, both individuals and organisations, stood at 202,623, he read out a scripted reply to lawmakers' queries.

The government earned Tk 44,449.28 crore from import of vehicles in the periods between fiscal 2009-10 and April this year, said Muhith.

There are 1513,253 income tax payers at present and they paid Tk 2,067 crore till May, he added.

BB HEIST MONEY

Bangladesh was yet to find $66.37 million of $101 million stolen from the Bangladesh Bank reserves, said Muhith.  He said $20 million was reimbursed from Sri Lanka to the Federal Reserve Bank, New York.

Of the $81 million that had gone to the Philippines, $14.63 million was deposited in BB's account in the Federal Reserve bank, he added.

Bangladesh Bank, Bangladesh Financial Intelligence Unit, the finance and foreign ministries, Office of the Attorney General and Criminal Investigation Department of police are working together to realise the money, said Muhith.

Legal initiatives were also ongoing in the Philippines, he said.

The GDP growth in fiscal 2016-2017 will be 7.24 percent, while the country achieved an economic growth rate of 7.11 percent in fiscal 2015-16, Muhith said, referring to the data of Bangladesh Bureau of Statistics.

The government is taking different steps, including the ones to boost industrialisation, employment, production and exports, to achieve the growth, he added.

Citycell has requested National Bank to pull back its gambit to sell off the mobile operator's office space in the capital's Mohakhali area as part of the efforts to recover Tk 454.45 crore of unpaid loans.

Last month, the private commercial bank ran a newspaper advertisement requesting bids by June 15 to purchase the 38,800 square feet floor and 5.04 decimal of land that currently serves as the operator's head office.

“We found no interested bidder,” said an official of the bank. The bank is yet to decide whether it will call for another round of bids.

“Citycell owners are out of the country now. They requested us to go for a payment arrangement,” he added. Earlier, Faisal Morshed Khan, son of Citycell Chairman Morshed Khan, also said they are in talks with the bank on the issue and would pay off the loans shortly.

Recently, the telecom regulator recommended the government to cancel the licence of the operator for not paying dues.

The telecom division has forwarded the recommendation of Bangladesh Telecommunication Regulatory Commission to the Prime Minister for a final nod, said a top official of the telecom division.

In October last year, the BTRC brought down the curtains on Citycell over dues amounting to Tk 477 crore pertaining to spectrum and licence fees, revenue sharing and late penalty.

After the cancellation of its spectrum, Citycell had paid Tk 230.19 crore to the BTRC along with Tk 14 crore as tax to the National Board of Revenue, according to documents.

Citycell disputes the amount claimed by the BTRC, so the High Court formed a committee to settle the matter. The committee has submitted its report recently.

Faisal Khan said the company has paid the BTRC's dues and would gradually pay back the bank loans.

Recently, a group of employees served a legal notice on Citycell over mounting amount of unpaid salaries and other benefits.

Shareholders have been trying to sell the operator's licence for the last few years, but it did not happen.

Citycell, which began operations in 1993, has been out of service since October last year.

Singapore's SingTel owns 44.54 percent shares in Citycell while Pacific Motors owns 37.95 percent and Far East Telecom 17.51 percent.

Banks have tied up with clothing brands, supermarket chains and restaurants in the contest to get customers to splurge during Ramadan and the Eid-ul-Fitr festival.

Standard Chartered, Mutual Trust, Eastern, City, Brac and many other banks are offering discounts of up to 30 percent for purchases made with cards during the month of Ramadan.

bKash, a mobile financial service provider, is offering 10-20 percent cash back for payment made through the platform at a select few clothing stores.

“Bangladesh Bank asked us to make digital payment popular, so we are offering cash backs to get people to take to the platform,” said Kamal Quadir, CEO of bKash.

Standard Chartered, the pioneer in the card business in Bangladesh, is providing the highest offers for Ramadan and Eid shopping.

The bank is offering cash back of 2 to 7.5 percent for spending through card in grocery shop, dining, hotel and all other retail transaction.  A Standard Chartered MasterCard holder can enjoy up to 20 percent discount at 20 clothing stores and 25 percent discount with Visa card.

The bank also offering 35 percent discount on furniture and electronics purchase from 11 brands for the occasion of Eid-ul-Fitr.

“Banks are offering incentives for card transaction to promote a cashless society,” said Abrar A Anwar, chief executive officer of Standard Chartered Bangladesh, adding that it is a global practice to accelerate economic activities.

Banks and merchants are jointly making the offers and both parties are being benefited as it leads to an increase in card transaction. The offers also tempt customers to buy more, he added.

Among other banks, Mutual Trust Bank, Dhaka Bank, United Commercial Bank, National Bank, NRB Bank are running 'buy one get one free' offer for iftaar and suhoor buffets at standalone restaurants and upscale hotels for their card holders.

The BB is encouraging the use of card for transactions as it reduces the cost and risks of carrying cash, said Subhankar Saha, executive director of the central bank.

Card transaction between the months of January and March stood at Tk 2,023 crore, up almost 14 percent from a year earlier, according to data from the BB.