For a long time the bank sector of the country has been through a deep crisis. High defaulted loans are making the financial health of the banks critical, and that reflects on security deficit. Although it is mandatory to keep a certain amount of provision against the loan, many banks are unable to form the necessary reserves due to the increase in the loan. This deficit is not just a threat to the stability of the bank sector; Rather, it is also a signal for the overall economy.
A recent report of Bangladesh Bank has come up with such a horrible image. At the end of December 2021, the provision deficit in the banking sector stood at Tk. The deficit has increased to Tk 8,122 crore over the three months, the growth rate is 5.72 percent.
According to analysts, the crisis will be even more apparent if the loan is not drawn. Banks are constantly weaker due to the intervention of political and influential groups in the approval of the loan, mismanagement and irregularities.
According to the banking rules, the provision is to be kept at a fixed rate against good and bad loans. It is mandatory to preserve the provision of 1.5 to 5 percent against the general category loan, 20 percent for low quality loans, 5 percent for suspicious loans and 5 percent for evil loans. The reality, however, is that the banks are unable to fulfill this obligation. As a result, the amount of deficit is increasing day by day.
Not only the provision deficit, the size of the defaulted loan has also increased drastically. At the end of December, the amount of defaulted loans in the banking sector stood at 1 lakh 5 thousand 5 crore, which was Tk 2 lakh 3 thousand crore even three months ago. That is, the defaulted loan has increased to Tk 8,8 crore in just one quarter, the growth rate is 5.7 percent.
Particularly state -owned banks have the most problems. The provision deficit of these banks has risen to Tk. The image is not very good for private banks; The provision deficit in this sector has increased to Tk. 5,8 crore, which is 5.7 percent higher than September.
However, hope is the case with foreign and specialized banks. At the end of December, the provision of foreign banks surplus 1 crore and specialized bank surplus is Tk 20 crore. From this, it is understood that the problem is mainly evident in domestic banks.
Analysts say that the situation has been created today because of the irregularities and influential borrowers in the political umbrella for a decade and a half. Former Governor Abdur Rauf Talukder and Fazle Kabir adopted during the time deepened the crisis. After the change of government, Bangladesh Bank is strictly applying the definition of defaulted loan in international standards, which made the situation realistic, but the bank's weaknesses have brought the weakness more clearly.
At present, the loan of Tk. It has reached 12.7 percent in the state -owned bank, and at 5.7 percent in the private bank. Experts are emphasizing the approval of political intervention -free loans, efficient management and recovery of defaulted loans to resolve the crisis.
