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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

Central bank investigators have stacked ten specific allegations against Dewan Mujibur Rahman. Photo: NRB Commercial Bank. The central bank has fired NRB Commercial Bank’s top official after it found evidence of corruption and irregularities against him. Dewan Mujibur Rahman, who served as the managing director and CEO, has also been barred from working in any […]

Bangladesh Bank today removed NRB Commercial Bank’s Managing Director Dewan Mujibur Rahman over gross irregularities including corruption. Suvangkar Saha, spokesperson and executive director of the central bank, confirmed it to The Daily Star. The central bank earlier served show-cause notice against him on 10 counts of wrongdoings, including signature forgery, interference of outsiders in the board and […]

The total default loans will be Tk125,307 crores More and more businessmen are showing keen interest to open new commercial banks in Bangladesh, even though the country’s banking sector is under stress because of financial problems like non-performing loans (NPLs). As of September 30, the 57 commercial banks in the country have disbursed total loans […]