Janata Bank’s profit tumbles

Janata Bank Limited's profit tumbled in 2022 amid lower income from investments and the requirement to set aside a higher amount in provisions against bad loans.

The state-run lender's profit plunged 55.5 per cent year-on-year to Tk 80.89 crore last year although most private banks logged higher profits and foreign banks saw more than doubling of earnings, according to financial statements.

The net interest income returned to a positive territory at Tk 37 crore from a negative Tk 71 crore in 2022. But investment income fell 14 per cent to Tk 1,768 crore. It was Tk 2,060 crore in the previous year.

Commission, exchange and other operating incomes rose.

Janata's total provision against bad loans climbed 40.8 per cent to Tk 743 crore in 2022. Its net asset value per share dropped to Tk 199.19 in 2022 from Tk 204.81 a year ago.

Preferring anonymity, a top official of the bank said Janata Bank's profits fell as its income from investment dropped. Investment in government securities declined.

"On the other hand, we had to keep higher provision."

The official said the spread of new variants of Covid-19 hampered the management of non-performing loans of Janata Bank. The NPL had been on a falling trend in the previous years.

Janata's classified loans totalled Tk 15,197 crore, accounting for 17.84 per cent of the total loans in 2022.

The classified loans were Tk 12,319 crore, or 17.61 per cent of the total credits in 2021, according to the financial reports.

Deposits inched up 0.10 per cent to Tk 101,457 crore in 2022. However, fixed deposits dropped 9.38 per cent to Tk 50,519 crore.

Janata's loans and advances increased 21 per cent to Tk 85,208 crore.

The advance deposit ratio improved to 82.93 per cent in 2022, an increase from 67.7 per cent a year ago.

The bank's paid-up capital is Tk 2,314 crore. Its capital shortfall under BASEL III stood at Tk 1,737 crore at the end of 2022, up from Tk 723 crore in 2021.