target not met
Bangladesh Bank has directed four state-owned banks to reduce their non-performing loans by 12 percent by June next year in compliance with IMF conditions. The four banks in question are Sonali Bank, Aagi Bank, Janata Bank and Rupali Bank.
However, no specific instructions have been given to reduce defaulted loans. As a result, the non-performing loans of most public sector banks have increased instead of decreasing.
In March, 14.65 percent of Sonali Bank’s loans were in default, which increased to 14.93 percent in June. The number of defaulted loans in the leading bank increased from 21.89 percent to 23.51 percent. Janata Bank saw a significant increase in defaulted loans, which increased from 17.65 percent to 32.64 percent.
Similarly, Rupali Bank experienced a rise in defaulted loans from 18.41 per cent to 19.06 per cent. The capital of these four government-owned banks has also been depleted, resulting in significant capital losses.