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Muhith under fire over loan scandals in banking sector

The budget for the 2018-19 fiscal is presented in parliament on Thursday. Photo: PID Opposition leaders and some lawmakers from the ruling party have come down hard on Finance Minister ABA Muhith over the loan scandals and mismanagement that plagued the banking sector amid discussions on budget in parliament. Most of the lawmakers criticised the […]

Bangladesh Bank. – New Age file photo The government is likely to set aside Tk 1500 crore in the upcoming national budget in bailout fund for scam-hit state-owned banks despite opposition from experts, think-tanks and right groups. The proposed allocation is, however, Tk 500 crore less than the bailout fund of Tk 2,000 crore allocated in the […]

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Photo:Syed Zakir Hossain ‘We have already started reconstruction and reforms of Farmers Bank. The bailout will turn the bank into a semi-government bank as the five state-owned organizations will hold 60% of its shares’. In a bid to save the scam-hit Farmers Bank Ltd from the liquidity crisis, the government and Bangladesh Bank have authorized […]

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Nine banks, including six state-owned banks, are facing Tk 19,446.6 crore shortfall in capital as of December 31, 2017 amid loan scams and failure to recover growing defaulted loans. Total capital shortfall of the same banks was Tk 17,966 crore at the end of September 2017 quarter which increased by Tk 1480.6 crore during the October-December 2017 period. […]

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  Banks facing intensified liquidity crisis       Islami Bank Bangladesh Limited has recently curtailed the authority of its branch managhers, making it mandatory to take permission of the head office for distributing loan amounting to Tk 500,000 and above. Any of the 332 branches of the country’s largest private commercial bank earlier could disburse any amount […]

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If the new banks, especially the failing ones, want to come back to business, they have to practice inclusive banking, and other new types of banking, in which there is huge market space and possibility of success A number of new banks are desperately striving to collect deposits by offering attractive rewards like jobs. But […]

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Seven banks of Bangladesh are currently operating with capital deficits totalling over Tk 94 billion until September last year – a crisis that threatens to metastasise into a large-scale banking meltdown. The total amount of capital deficit in state-owned banks Sonali, Rupali, Janata and BASIC was more than Tk 76.26 billion. Privately-owned Commerce Bank, Farmers […]

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Inam Ahmed and Shakhawat Liton   Seven months after the government announced a Tk 2 crore “recapitalisation” of state-owned banks, the financial institutions have started asking for fresh money from the government. This time their demand is much higher — a little over Tk 20,000 crore — than what they were given in the budget […]

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A file photo shows people walking in front of the Farmers Bank Motijheel branch in Dhaka. An intuitive plan has been taken to give bailout fund of Tk 1,100 crore to scam-hit Framers Bank through state-owned financial institution Investment Corporation of Bangladesh and three state-run commercial banks —Sonali, Janata and Agrani, officials said. — New […]

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The country’s banking sector passed yet another turbulent year marred by growing bad loans and unstoppable scams caused by hostile takeover of private banks and exposure of two new private banks to almost bankruptcy. The swelling bad loans have been described by experts as chronic problem while they identified this takeover of banks as ‘hijack’ […]

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Operating profits of most of the scheduled banks increased significantly in the just-concluded year of 2017 amid rampant credit disbursements by the banks, said senior bank officials. Out of 28 banks, data of which were available till Sunday, operating profits of 27 banks rose in the year. Relatively calm political situation, moderate rise in export […]

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Sajjadur Rahman and AKM Zamir Uddin The cash-strapped Farmers Bank failed to repay interbank short-term loans of about Tk 700 crore to four banks over the past two months, a development that may further erode depositors’ confidence in the scam-hit bank. The interbank lending market is where banks borrow from each other for a specific term, mostly […]

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