Bonik Barta Illustration Ten
banks, including six private commercial ones, had faced a provision shortfall
of around BDT 315.49 billion in total at the end of June this year, as per the
latest data of Bangladesh Bank (BB).
The
banks are National Bank, BASIC Bank, Agrani Bank, Rupali Bank, Bangladesh
Commerce Bank, Dhaka Bank, Standard Bank, Bangladesh Development Bank, IFIC
Bank and Southeast Bank.
According
to the policy, banks are required to maintain a provision of 0.50 percent to 5
percent of their deposits. However, provisioning requirements can range from 20
percent to 100 percent depending on the classification of default loans.
Central
Bank data shows that the provision shortfall in the banking sector has risen by
BDT 49.63 billion between April and June. As of the end of March this year, the
sector's provision shortfall stood at BDT 265.86 billion.
According
to the Bangladesh Bank report, default loans in the banking sector reached over
BDT 2.11 trilion, or 12.56 percent of the total loans, by the end of June.
During
the June quarter (April-June), classified loans rose by BDT 290.96 billion from
BDT 1.82 trillion as of March 30.
The
BB data shows that state-owned commercial banks hold the largest share of the
classified loans (BDT 1.02 trillion or 32.77 percent) followed by specialised
banks (BDT 57.56 billion or 13.11 percent), private commercial banks (BDT 999.21
billion or 7.94 percent), and foreign commercial banks (BDT 32.29 billion or
4.74 percent).
