8 banks’ capital deficit Tk70bln

Source:sangsad State-owned banks, private banks and eight other financial institutions have a capital deficit of over TK 71.49 billion and five banks have a provision deficit of over Tk 21.2 billion, Finance Minister AMA Muhith told the parliament.

The Minister revealed the information during Tuesday’s session while replying to a question raised by BNP MP Zafrul Islam Chowdhury.

Sonali Bank, Rupali Bank, Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank were the state-owned banks having both capital and provision deficit.

The private banks falling in this category were Bangladesh Commerce Bank, First Security Islami Bank, ICB Islami Bank, United Commercial Bank and Mutual Trust Bank.

The statistics were based on reports till September last year, said Muhith.

Sonali Bank had capital deficit of over Tk 3.78 billion, Rupali Bank over Tk 737 million, Bangladesh Krishi Bank over Tk 45.18 billion and Rajshahi Krishi Unnayan Bank with that over Tk 5.18 billion.

For the same period, Bangladesh Commerce Bank had deficit of over Tk 2.08 billion, First Security Islami Bank over Tk 1.39 billion, ICB Islami Bank over Tk 12.8 billion and United Commercial Bank with that of over 321 million.

Mutual Trust Bank did not have a capital deficit.

Enlisted under provision deficit category, Sonali Bank had deficit of over Tk 10.17 billion, Krishi Bank over Tk 9.85 billion, Bangladesh Commerce Bank over Tk 644 million, ICB Islami Bank over Tk 525 million and Mutual Trust Bank with that of Tk 5.4 million.

However, Rupali Bank, Rajshahi Krishi Unnayan Bank, First Security Islami Bank and United Commercial Bank did not have any provision deficit.

State-owned commercial banks were asked to calculate provision and capital deficits considering capital and default loans till December last year and apply to the government to make up the deficits, said the Finance Minister.

Necessary steps for recapitalisation were considered to fill capital deficits of Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank.

Bangladesh Bank had directed private banks to clear their capital and provision deficits.

Answering another question, the Finance Minister said the current government had taken over Tk 658 billion in loans from the apex bank and scheduled banks since it came in power.

The government usually takes loans under treasury rules from the banking sector to clear budget deficits.

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