Default loans of 47 banks rose to Tk 29147.67 crore at the end of the year 2011, Bangladesh Bank (BB) statistics revealed. The central bank in its latest inspection report identified the defaulters of the 47 banks and asked the respective management of the banks to accelerate the recovery drive. 

The sectors of the top defaulters are textile and clothing industry, agro-based industry, jute, power, tannery, paper mills, shipping, electrical manufacturing, tea estates, construction, and trading, according to the report.The state-owned Sonali Bank has the largest amount of default loans, which is around Tk 5705 crore.

The bank’s total loans and advances stood at Tk 31,895 crore. In percentage point ratio the default loan is 17.89 per cent of its total loans and advances.Among the specialised banks, Bangladesh Krishi Bank remains in the second place by holding default loans of Tk 3893.85 crore while that of the Bangladesh Development Bank Ltd is Tk. 1308.48 crore, and the Rajshahi Krishi Unnayan Bank is Tk 1268.95 crore.

Among  the private banks, the default loans of National Bank Ltd. is Tk 1058.75 crore while that of ICB Islamic Bank is Tk 814 crore, Southeast Bank’s Tk 663 crore  and Uttara Bank’s Tk 606.54 crore.  On the other hand, eight foreign banks together holds default loans of around Tk 672 crore. Standard Chartered Bank remains top of the list with Tk 351.93 crore default loans while HSBC and Citi Bank NA have Tk 82.18 crore and Tk 31.11 crore respectively.

Till 31st December 2011, the banking sector’s total loans and advances stood at Tk 369,901 crore of which the amount of classified loans (CL) is Tk 22,644.16 crore.The CL of the four state-owned banks together is Tk 9170.75 crore while that of four the specilised banks (BDBL, BKB, RAKUB and BASIC Bank Ltd) is Tk 5645.27 crore.

Thirty private banks together had CL worth Tk 7202 crore and that of the eight foreign banks is Tk 626 crore.The BB data show that the CL with the public sector totals Tk 848 crore while the remaining amount is with the private sector.

The Independent/Bangladesh/ 10th March 2012

Dr Ahmed Al Kabir, Chairman of Rupali Bank Limited, speaks at the Khulna divisional managers’ conference-2012 at the conference room of Hotel City Inn in Khulna recently.

The state-owned Rupali Bank Limited has organized divisional managers’ conference-2012 of Khulna held at the conference room of Hotel City Inn in Khulna recently.

Among others, Sheikh Serajul Hoque Farazi, director, Deputy Managing Director A K M Ashraf Uddin Khan, General Manager Syed Abu Asad, were present on the occasion.

The Daily Sun/Bangladesh/ 10th March 2012

BRAC Bank disbursed Tk 2.75 million as ‘spot loan’ to three SME entrepreneurs during the “SME Entrepreneurs and Bankers Conference” in Barisal recently.

Md Abul Quasem, deputy governor of Bangladesh Bank, formally inaugurated the conference which was jointly arranged by SME Foundation and Bangladesh Bank at Barisal Club on February 28, said a press release.

The entrepreneurs who received the loans are – M/s. Sikder Enterprise, M/s. Lamia Clothes and M/s. Fima Fashion & Tailors.

Advocate Shawkat Hossain Hiron, mayor of Barisal City Corporation, Syed Rezwanul Kabir, managing director of SME Foundation, Sukamal Sinha Choudhury, general manager of SME & Special Programmes Department of Bangladesh Bank, Abdur Rahman, head of SME Banking of BRAC Bank and other senior officials of different banks and local entrepreneurs attended the program.

The Daily Sun/Bangladesh/ 10th March 2012

Bangladesh Bank asked the chairmen of commercial banks to refrain from interfering in the day-to-day operations of the banks.
The central bank yesterday issued a warning letter to all private and public commercial banks.

The Daily Star/Bangladesh/ 9th March 2012

Sustainable values-based banks, which prioritise people and environment than profit, are outperforming traditional mainstream banks in key financial indicators, a global report suggested.

The report was made public at the annual conference of Global Alliance for Banking on Values (GABV) in Vancouver, Canada yesterday.

The GABV is a network of 15 of the world's leading sustainable banks, including BRAC Bank and BRAC Microfinance Programme.

Muhammad A (Rumee) Ali, chairman of BRAC Bank, is leading a delegation of the Bank in the conference, according to a statement of the Bank.

As sustainable values-based banking is getting popularity globally, GABV has welcomed Canada-based Assiniboine Credit Union as its 15th member.

Commissioned by the GABV and funded by the Rockefeller Foundation and GABV, the report compared the performance of 17 values-based banks with 29 of the world's largest and most influential banks, including Bank of America, JP Morgan, Barclays.

“GABV takes SME financing of BRAC Bank as a model for sustainable economic development. It makes us proud that GABV banks intend to replicate the financing model of a Bangladeshi bank to serve the unserved community in many parts of the world,” Ali said.

The Daily Star/Bangladesh/ 9th March 2012