The Bangladesh Bank (BB) Monday turned down banks' appeal for extension of timeframe regarding loan classification, provisioning and rescheduling.

The central bank's refusal came after a delegation of the Association of Bankers, Bangladesh (ABB), led by its Chairman Nurul Amin, submitted a proposal to BB Governor Dr. Atiur Rahman for extension of the deadline by at least 1.5 years.

Vice Chairman of ABB and Managing Director of Pubali Bank Ltd Helal Ahmed Chowdhury, Managing Director of Islami Bank BD Ltd Abdul Mannan, and Managing Director of Eastern Bank Ltd Ali Reza Iftekhar were present, among others.

Earlier, the central bank set July 1, 2012 as the deadline for complying with its directive on loan classification, provisioning and rescheduling.

On June 19, the BB said in a clarification that its revised instructions on loan classification and provisioning will come into effect from July 01, instead of June 14.

However, the ABB, according to the decision taken at its recent meeting, requested the BB to extend the deadline up to January 1, 2014.

The Daily Financial Express/Bangladesh/ 3rd July 2012