The profit of the banks has halved in the first nine months of the current calendar year compared to what they achieved during the same period in the previous year.
Dhaka Stock Exchange (DSE) made the revelation in a recent report.
According to an audited report, during Jan-Sept period, 30 banks together posted a profit of Tk 15.95 billion, 48 percent lower than Tk 30.50 billion that they attained in the previous corresponding period.
In the third quarter, profit of eight banks has increased, 20 banks have declined and two banks suffered further loss.
Analysts held political unrest, crash in capital market, an increase in ineffective loans and central bank’s enforcement of tough regulations responsible for the sharp drop in banks’ profit.
National Bank Managing Director Niaz Ahmed told bdnews24.com: “Political instability is having negative impact on bank business. Big businessmen are not making investment. That’s why profit has not increased like the previous year.”
Bangladesh Bank former Deputy Governor Khondkar Ibrahim Khaled said a large amount of loans disbursed through corrupt means had been stuck, shooting up the sum of ineffective loans and provision. That’s why profit has dropped.”
He also thinks that the changes in loan scheduling policy have impacted the profit.
IDCL Investment Managing Director Md Muniruzzman held rise in ‘idle money’ in banks and crash in capital market partially responsible for the profit decline.
National Bank performed the worst among the banks in the nine months. It sustained a loss of Tk 3.86 billion against Tk 1.21 billion profit in the same period in previous year.
Islami Bank was the best performer posting a profit of Tk 1.94 billion. Its profit was Tk 5.05 billion in the previous corresponding period.
Source: bdnews24
