Bangladesh Bank Governor Atiur Rahman speaks at a programme to inaugurate the operations of 'large-loan monitoring software' of the central bank, at the regulator's headquarters in Dhaka yesterday

The central bank has introduced a system for direct and close monitoring of big loans in the backdrop of various cases of embezzlement including that of the Hall-Mark Group.

Bangladesh Bank Governor Atiur Rahman yesterday inaugurated the operations of 'large-loan monitoring software' at the Bank's headquarters in Dhaka.

“In the existing system, it is not possible to get an idea about the nature, evolution and future of loans taken by a borrower, but under the new system almost all large borrowers will be kept under strict monitoring,” Rahman said at the function.

Banks will have to maintain a database of the large borrowers and make the data available online for the central bank.

The data to be submitted include the borrowers' debt-equity ratio, profitability, loan concentration in a sector, and the amount of non-funded facility converted to funded facility.

About 25-30 percent of the banks' total loans are in the hands of large borrowers, according to BB statistics.

Sonali Bank's Ruposhi Bangle Hotel branch gave Hall-Mark and five other companies a total of Tk 3,547 crore in loans and a large part of the loans was non-funded through bill purchase.

These loans created a big liquidity crisis in the entire banking system.

The BB has so far taken various steps to prevent the recurrence of such scams, and monitoring large loans using the new software is one of the steps.

The governor said the BB has taken multipronged programmes to bring strategic changes in its monitoring. He said the central bank has been monitoring the overall situation in the banking sector through various measures.

Rahman said the new system will allow the BB to know how the non-funded loans turn into funded loans, their continuous evolution and the amount.

Due to non-funded loans, the loan portfolios of the banks become risky and it is a major cause of increase in default loans.

The software will enable BB to forecast on any liquidity crisis and advise the banks to take corrective measures, Rahman said.

Md Shirajul Islam Mollah, Chairman of Prime Bank Limited, speaks at the managers’ conference at a hotel in Dhaka Saturday.

Prime Bank Limited organised managers’ conference at a hotel in Dhaka Saturday.

Md Shirajul Islam Mollah, Chairman of the Board of Directors of the bank inaugurated the conference as the chief guest, said a press release.

Director of the bank Prof Mohammed Aslam Bhuiyan spoke on the occasion where director Md. Shahadat Hossain was present at the programme.

Md Ehsan Khasru, Managing Director and CEO of the bank presided over the conference.

While speaking, Md. Shirajul Islam Mollah, Chairman of the bank thanked the branch managers for achieving the targets for last year.

Managing Director and CEO Md Ehsan Khasru said, the bank has set an objective to raise low cost-no cost deposits, enrichment of SMEs and retail businesses for this year.

KS Tabrez, Managing Director of Dutch-Bangla Bank Limited, seen with the poor cleft-lipped boys and girls under a campaign at a function at CRP in Savar recently.

Under the smile-brighter programme, Dutch-Bangla Bank Limited organised a 4-day plastic surgery campaign at the bank's own cost at the Center for Rehabilitation of the Paralyzed (CRP) in Savar recently.

The bank took the initiative for the poor cleft-lipped boys and girls to bring back the endearing smile on their faces, said a press release Saturday.

Humaira Azam, Deputy Managing Director of Bank Asia, poses for photograph with the recipients of Bank Asia Higher Studies Scholarship at a ceremony in Chittagong Friday.

Bank Asia awarded scholarships to fifteen insolvent meritorious students for their higher study at Lohagara in Chittagong Friday.

Humaira Azam, Deputy Managing Director of the bank, handed over the scholarships among the students of different institutions at Lohagara upazila, said a press release.

Ziaul Huq Chowdhury Babul, Chairman of Lohagara Upazila, Sahabullah, Senior Vice President and Head of Agrabad Branch, and AKM Saiful Islam Chowdhury, Senior Vice President and Head of Station Road Branch of the bank, students, teachers, journalists, businessmen and local elite attended the function.

A total of 153 students were selected for Bank Asia Higher Study Scholarship for 2012.

Farm loan disbursement rose by around 16 percent to Tk 7,723.58 crore in the first seven months of the current fiscal year compared to the same period a year ago.

All commercial banks collectively disbursed 54.66 percent of their annual target of Tk 14,130 crore in agriculture loans during July-January, according to Bangladesh Bank data.

The disbursement was 48.37 percent or Tk 6,675.36 crore during the same period in fiscal 2011-12.

However, 19 banks disbursed below 50 percent of their annual target during the period of the current fiscal year.

“The central bank's move to encourage banks to disburse farm loans has contributed to the current year's growth,” said a BB official.

He said the finance ministry has also recently asked banks to increase farm loans.

Six state-owned banks -- Sonali, Janata, Agrani, Rupali, Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank -- disbursed Tk 4,532.47 crore, or 52.66 percent of their annual target of Tk 8,607 crore.

Private and foreign banks disbursed Tk 3,191.12 crore, which was 57.78 percent of their total annual target of Tk 5,523 crore.