|
News | Web Resources | Yellow Pages | Free Advertising | Chat
Bangladesh |
Immigration |
E-cards |
Horoscope |
Matrimonial |
|
Change Your Life! |
Nationalized banks to publish list of long pending loan cases |
|
News
|
|
|
January 26, 2001
Dhaka-- (UNB) – Finance Minister Shah AMS Kibria yesterday directed the nationalized commercial banks to publish a list of long pending loan cases and assign one general manager in each bank to deal with court cases. The GM will be responsible for placing reports to the board meeting of the banks in every three or four months and keep it abreast of progress of the cases. Addressing a conference of zonal managers of Rupali Bank, the minister also asked the NCB management to identify the defaulters who are no more in business and work out new strategies to put pressure on them. He criticised the banks for their lack of initiative to monitor loan recovery and follow the cases. Kibria denounced the plea often cited by banks that loan cases have been lying with courts unsettled for 10 years or more. “It may be true for one or two cases but in most cases banks do not have any initiative.” He said even vigorous loan recovery drive of the government and strengthened monitoring of the central bank could not help bank management become alert and active. “No achievement is in sight even four years after law was amended to allow the same court to give decree and execution order in loan cases.” He said not a single criminal suit was proceeded against loan fraudulence “even when oil turns water”. “If one fraud goes to jail, others must be alert,” he said advising the bank management to sharpen their legal arm in this regard. Rejecting any argument in favour of default in trade financing, he said goods from bank custody could not be removed without help from the bankers. “In this case, both the bankers and businessmen should be held responsible.” The minister firmly announced that banking system must be freed from the culture of loan and interest forgiveness and industrial sickness. He said the committee for waiving interest that has so far settled 2000 cases is the last resort for the industries, which become sick for genuine causes. “We want to stop the culture of being sick (industries). We also want the banks to come out of interest waiving culture that benefits the dishonest traders and hit genuine ones. The Finance Minister said the rate of overall nonperformance of loan has already reduced to 32 percent from 41 percent and it would be reduced to 15-18 percent within the next two years. He, however, said Rupali Bank’s achievement in this regard is not satisfactory. He said the banks total loan and advance reached Tk 3388 crore, 37 percent of which is non-performing. Besides, he said, the bank’s Tk 10.15 crore operating profit this year is less compared to its huge assets. Finance Secretary Dr Akbar Ali Khan said nationalisation of banks in early 70s was done with the objective of helping the poor but it has now become a burden for the poor. “Now the banks’ losses are covered with the tax payers’ money.” Chairman of the Rupali Bank Khanadaker Rashiduzzaman Dudu chaired the conference, also addressed by additional secretary (Banking) Dr Shoeb Ahmed, managing director of the bank Rabiul Hossain and directors Mohammad Hafiz Ibrahim and Nurul Alam Chowdhury. |