Tk 10,000cr in 10 years | The Daily Star
12:00 AM, February 27, 2018 / LAST MODIFIED: 05:28 AM, February 27, 2018

Tk 10,000cr in 10 years

Govt gave it to 7 banks hit by capital deficit, says Muhith in JS

Four state-run and three private banks were facing a capital deficit of Tk 9,417.42 crore as of September last year, said Finance Minister Abul Maal Abdul Muhith yesterday.

The government provided those banks with Tk 10,272 crore between fiscal 2005-06 and fiscal 2016-17 to help them meet the deficit, he said in reply to a query from independent MP Md Abdul Matin.

“Yes, the state-run and private banks are now facing capital deficit. Out of total 57 banks in the banking sector, four state-run banks are having a capital deficit of Tk 7,626.23 crore while three private banks Tk 1,791.20 crore as of September 30, 2017,” Muhith said.

In a scripted answer, the minister informed the House that the capital deficit at the state-run Sonali Bank stood at Tk 3140.41 crore, while it was Tk 689.9 crore at Rupali Bank, Tk 1,272.93 crore at Janata Bank and Tk 2,522.99 crore at BASIC Bank.

Of the three private banks, Bangladesh Commerce Bank Ltd faced a capital crisis of Tk 231.31 crore, The Farmers' Bank Ltd Tk 74.76 crore and ICB Islamic Bank Ltd Tk 1485.13 crore.

All these banks were hit by various scams and irregularities, leading to the capital deficits, according to banking experts. 

Talking about the steps taken by the government to address the issue, Muhith said the Tk 10,272 crore was already added to the capital of the seven banks.

An agreement and memorandum of understanding were signed with the banks concerned for monitoring them closely, he said, adding that the government also reorganised the bank boards. 

Talking about Farmers Bank, Muhith said the bank was given approval to issue bond worth Tk 500 crore.

About Bangladesh Commerce Bank, Muhith said a process was under way to have a law passed in parliament to increase the approved capital of the bank.

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