Some banks responsible for non-performing loans, says Muhith

Finance Minister AMA Muhith yesterday said some banks are responsible for the growing non-performing loan (NPL) which is becoming a matter of concern in the banking sector, reports BSS.

"Some banks think that if the clients can be made defaulters, they can be brought under the grip of the banks", he said while speaking as the chief guest at a programme on the problems and solutions for banking sector at the Centre on Integrated Rural Development for Asia and the Pacific (CIRDAP) auditorium in the capital.

The finance minister said there are some banks which have the tendency to make the clients defaulters from day one of allocating loans to them.

The minister called for enhancing capacity and capability of the bankers for taking decisions properly at any situation so that they can provide loans to the right persons or companies.

He underscored the need for providing training to the bankers for accepting standard loan proposals from the clients so that the banks can recover the loans in stipulated time.

"Every bank has its own training centers. The training centres are situated in Dhaka city or Dhaka division. Several banks can establish together at least 30 training center in 64 districts across the country," he added.

He said the government will start working from next March to make a guideline for merging banks, which will be interested to operate under a single board.

"The government will not force any bank for merging. It will depend on the banks own interest," he added.

Noting the capital inadequacy as one of the biggest problems of the state-owned banks, Muhith said that the government is putting greater emphasis on addressing this issue.

Earlier, Banking Division Secretary M Eunusur Rahman, in his presentation, expressed dissatisfaction over the capital inadequacy and the rising amount of classified loans in the state owned banks.

State Minister for Finance and Planning M A Mannan, Bangladesh Bank Governor Fazle Kabir, Senior Secretary of Finance Division Hedayet Ullah Al Mamun were present at the programme, among others.

 

Some banks responsible for non-performing loans, says Muhith

Finance Minister AMA Muhith yesterday said some banks are responsible for the growing non-performing loan (NPL) which is becoming a matter of concern in the banking sector, reports BSS. Some banks think that if the clients can be made defaulters, they can be brought under the grip of the banks, he said while speaking as the chief guest at a programme on the problems and solutions for banking sector at the Centre on Integrated Rural Development for Asia and the Pacific (CIRDAP) auditorium in the capital. The finance minister said there are some banks which have the tendency to make the clients defaulters from day one of allocating loans to them. The minister called for enhancing capacity and capability of the bankers for taking decisions properly at any situation so that they can provide loans to the right persons or companies. He underscored the need for providing training to the bankers for accepting standard loan proposals from the clients so that the banks can recover the loans in stipulated time. Every bank has its own training centers. The training centres are situated in Dhaka city or Dhaka division. Several banks can establish together at least 30 training center in 64 districts across the country, he added. He said the government will start working from next March to make a guideline for merging banks, which will be interested to operate under a single board. The government will not force any bank for merging. It will depend on the banks own interest, he added. Noting the capital inadequacy as one of the biggest problems of the state-owned banks, Muhith said that the government is putting greater emphasis on addressing this issue. Earlier, Banking Division Secretary M Eunusur Rahman, in his presentation, expressed dissatisfaction over the capital inadequacy and the rising amount of classified loans in the state owned banks. State Minister for Finance and Planning M A Mannan, Bangladesh Bank Governor Fazle Kabir, Senior Secretary of Finance Division Hedayet Ullah Al Mamun were present at the programme, among others.