The four state banks' default loans spiralled in December 2012, due to the various scams unearthed last year.
The
cumulative default loans on December 31, 2012, as per the banks'
preliminary data, stood at Tk 21,519 crore, up 126 percent year-on-year.
A
central bank inspection drive last year exposed a host of
irregularities at state banks -- Sonali, Janata, Agrani, Rupali -- and
the loans have now been classified as defaults.
The biggest
irregularity was detected at Sonali Bank's Ruposhi Bangla Hotel branch,
where Tk 3,547 crore was embezzled by five firms, including Hall-Mark
Group, in the name of bill purchase.
The loans were given to the accused parties by giving “acceptance” to bills of different banks and branches of Sonali Bank.
Of the Tk 3,546 crore of default loans the Ruposhi Bangla branch raked up, Tk 2,600 crore has been classified.
Sonali
is yet to repay the remaining amount to the banks concerned, but when
it is done the amount will also be recorded as defaults.
Sonali's default loans on December 31 stood at Tk 12,050 crore, up 111 percent year-on-year.
“We
have taken drastic measures to recover the default loans. Next year,
you will see its outcome,” Pradip Kumar Dutta, Sonali Bank's managing
director, told The Daily Star.
He cited the recovery made in
January alone -- of Tk 632 crore -- which is 74 percent of the total
recovery made in the whole of 2012.
“Apart from the
irregularities, the new loan classification policy of the central bank
also contributed to the increase in default loan figures,” Dutta said.
Similarly
in Janata Bank, the default loan sum shot up 168 percent in December,
with its share of the outstanding loans increasing 1.5 times.
Agrani's default loans increased year-on-year by 143 percent to Tk 4,663 crore, and Rupali Bank's 113 percent.
“At
the end of last year, the boards of the public banks did not function,
which might have led to the rise in default loans,” a top official of
Janata Bank said, asking not to be named.
Loan sanctioning upon
political persuasion, dishonesty of bank officials caused the spike in
default loans, said Khondker Ibrahim Khaled, a former deputy governor of
Bangladesh Bank.
Khaled, however, disagrees that the change in
central bank's loan classification policy had much impact on the final
default loan figures.
“It made a very small difference,” he said,
adding that the government should issue strict directive to the
lawmakers to not pursue loans from public banks, for the sake of
bringing down the default loan volumes.
If any irregularity is detected, the finance ministry will have to take stern actions, including on-the-spot dismissal, he said.
Besides,
if BB makes any recommendation to the finance ministry regarding the
public banks, the ministry would have to take instant action. “The
central bank supervision will have to be strengthened further.”
