AKM Zamir Uddin
Seven state-run banks have failed to meet the minimum capital requirement, meaning they need further taxpayer-funded recapitalisation.
The latest data from the Bangladesh Bank showed a total of 10 banks, including the seven state lenders, faced a capital shortfall of Tk 23,363 crore as of March, up by more than Tk 3,800 crore compared to a quarter ago.
The lenders are Bangladesh Krishi Bank, Sonali, BASIC, Rupali, Janata, Agrani, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, ICB Islamic Bank and Farmers Bank.
Among the banks, BKB has had the highest amount of capital shortfall at Tk 7,930 crore, up from Tk 7,777 crore three months ago. Sonali's capital shortfall rose to Tk 6,755 crore from Tk 5,397 crore.
Agrani Bank has plunged into the capital shortfall in the first quarter although it had surplus of Tk 157 crore only three months ago. Trouble-hit Farmers Bank failed to maintain the required capital in the first quarter as the private lender has recently faced huge corruption and irregularities.
The BB data showed that the capital shortfall in the state-owned banks stood at Tk 21,282 crore as of March 31, up from Tk 17,442 crore a quarter ago.
The government has recapitalised the state lenders by injecting Tk 14,505 crore since 2009, but they are yet to strengthen their capital base in absence of corporate governance.
A BB official told The Daily Star yesterday that the central bank should take immediate measures to address the problem as such a situation sends out a negative message to the international community and local businesspeople that the banking sector was weakening. He said the widening default loan was one of the major reasons for the shrinking capacity of the banks to maintain the required capital.
Foreign businesspeople usually look at the capital base and non-performing loans of the scheduled banks before making investment decisions, the official said.This type of capital shortfall will put foreign investors at bay, he said, urging the central bank to strengthen monitoring to rein in financial scams.
- Courtesy: The Daily Star /June 24, 2018
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