BB issued letters on Dec 19 and the deadline for explanation ends today
As much as 89.3 percent of the credit extended by First Security Islami Bank, when controlled by the major Awami League beneficiary S Alam Group, to AL-affiliated Sikder Group by violating banking rules and regulations has become defaulted.
Problem-ridden Padma Bank has applied to the Bangladesh Bank for Tk 1,300 crore in liquidity support to mitigate its crisis and strengthen its ability to repay depositors.
Defaulted loans at six private commercial banks nearly tripled in one year till September 2024, according to central bank data, which bankers term “alarming”.
State-run Janata Bank has been partly exempted from the Bank Companies Act-1991 so that it can lend money to Beximco Group, a loan defaulter.
Consumer financing has slowed as people are adopting a go-slow strategy for taking loans, considering the increasing trend of interest rates amid ongoing inflationary pressure.
Motijheel is losing its historic lustre as Dhaka’s commercial hub, with Gulshan, among the wealthiest neighbourhoods in the capital, stealing its thunder.
Janata Bank is set to auction the mortgaged assets of Simran Composite Ltd
Default loans in the banking sector hit an all-time high of Tk 211,000 crore at the end of June of this year, as per the latest Bangladesh Bank data.
Three state-run banks far exceeded their limits to salvage a coal-fired power plant project of an Orion Group subsidiary, which was stalled for six years, with Tk 10,579 crore in loans thanks to policy relaxation by the Bangladesh Bank under the now-ousted Sheikh Hasina government.
The Bangladesh Bank (BB) has instructed the recently restructured banks to identify and assess their loan exposure to politically exposed and important persons as they might fail to repay the loans.
Islami Bank, the largest private bank by deposits in 2017, was a lucrative target for Sheikh Hasina’s cronies when an influential business group with her blessing occupied it by force – a “perfect robbery” in Bangladesh’s banking history.
Reconstituting the board of directors of ailing banks is the first step towards bringing good governance and discipline to the banking sector, according to Bangladesh Bank Governor Ahsan H Mansur.
The central bank has just reconstituted the board of United Commercial Bank (UCB) for financial wrongdoings, but it has a darker past – a takeover at gunpoint by a politically influential family over a quarter of a century ago.
The Bangladesh Bank yesterday instructed six S Alam-owned banks to stop any money going out of the accounts in the name of the Chattogram-based business giant, its associates’ companies and related persons.
Orion Pharma Ltd, a pharmaceutical company of Orion Group, has been provided a rescheduling facility on a forced/demand loan by state-run Agrani Bank with special approval from the Bangladesh Bank.
The Bangladesh Bank yesterday appointed an administrator to Nagad after one too many allegations of irregularities in the mobile financial service provider’s operations and dealings.
After seven years, S Alam Group’s control over Islami Bank ended yesterday after the Bangladesh Bank decided to dissolve the board of the country’s largest private sector bank that was heavily dominated by individuals linked to the conglomerate.
