20 defaulters account for state banks’ one-third bad loans
The top 20 defaulters accounted for one-third of the state banks’ total default loans in the first half of 2017, according to the finance ministry. As of June, the defaulters owed Tk 11,579 crore to Sonali, Janata, Agrani, Rupali, BASIC and Bangladesh Development Bank (BDBL), with the amount being 33.48 percent of the lenders’ total default loans, according to a paper prepared by the finance ministry. The paper was presented at a workshop styled “Review of the Health of State Banks: Way Forward to Face Challenges”, organised yesterday by the finance division at the Cirdap auditorium in Dhaka. BDBL’s 52.5 percent default loans were held by the top 20 defaulters, followed by 51.3 percent for Rupali and 49 percent for Janata, the paper shows. The rising default loans put pressure on the state banks’ capital, compelling the government to inject funds into them for their survival, said Md Eunusur Rahman, senior secretary of the bank and financial institution division, who presented the paper.
Muhith blames some banks for loan defaults
Finance Minister AMA Muhith Saturday blamed some banks for turning their clients into loan defaulters. “Some banks have a tendency to deliberately turn their clients into defaulters from day one of allocating loans to them”, Muhith said at a workshop on the status of state owned banks in the capital. “They think that if the clients can be made defaulters, they can be brought under the grip of the banks”, he added. Earlier, Banking Division Secretary Md Eunusur Rahman in his presentation lamented the capital inadequacy and the rising amount of classified loans of the state owned banks. Noting the capital inadequacy as one of the biggest problems of the state-owned banks, Muhith said that the government is putting greater emphasis on addressing this issue.
Palli Sanchay Bank launches online banking solution
Palli Sanchay Bank has introduced online real-time core banking solutions to provide quick services through the digital platform. Finance Minister AMA Muhith on Thursday launched the service by providing loans at three branches — in Rupganj of Narayanganj, Sylhet Sadar and Bogra — through a video conference from his secretariat. The bank authorities announced that the online service would be available in all of the bank’s 485 branches in the next three months. Established in June 2016 through a special act, Palli Sanchay Bank has branches in every upazila. Muhith said this was the first time that such an institution was going to provide online services accessible from every branch. Many of the local banks do not have the service, he said.
NBR to phase out truncated-base VAT within two years
The tax authority is in a process to gradually phase out the truncated-base of Value Added Tax (VAT) within the next two years before implementation of the new VAT and Supplementary Duty (SD) act-2012 from July 1, 2017. The process has been initiated following a recent instruction of Finance Minister AMA Muhith to the National Board of Revenue (NBR). The truncated-base or multiple rates of VAT ranging from 1.5 per cent to 10 per cent is currently enjoyed by 19 sectors as a tax-benefit for sustaining in the competition and flourish.
Govt to import 1.5m tonnes food grains if necessary: PM
Prime Minister Sheikh Hasina on Saturday said the government will import 1.5 million (15 lakh) metric tonnes of food grains, if necessary, for ensuring the food security of people. “We’ll distribute food free of cost among the extreme poor who are unable to buy it. Our plan is to ensure that until the next crops are harvested … not a single person will suffer from hunger,” she said while distributing relief materials and seedlings among flood victims on Gobindaganj Upazila Parishad premises on Saturday. The PM also said the seeds of different types of cereals, pulses and species will be given to the small and marginal farmers who want to cultivate others crops except paddy.
Rawhides may rot for rundown roads: tanners
Tanners fear a lot of rawhides may get rotten before reaching the Savar leather estate this year because of the poor condition of the roads and highways. Rawhide-laden trucks will have to wait for hours on the roads to enter the estate after crossing tailbacks at Hemayetpur in Savar, said Mohiuddin Ahmed Mahin, president of Bangladesh Finished Leather, Leathergoods and Footwear Exporters Association. The trucks may also tilt aside on the way from Hemayetpur to the estate, as the condition of the connecting roads has become very poor and risky already, he said. The hot and humid weather will also play a role for the rawhides to get rotten before reaching their destination, he said at a press briefing in Dhaka yesterday. The association urged the government to take immediate measures to improve the condition of the roads and highways for the sake of the sector. They also demanded the salt prices to be lowered and an uninterrupted supply of gas, power and water for their businesses. In the previous years, the rawhides used to enter the Hazaribagh tannery estate through different points, but this year the situation is different, Mahin said.
Esquire Knit to invest Tk 576cr to set up green factory
Esquire Knit Composite Ltd, a business unit of Esquire Group, plans to invest Tk 576.63 crore to set up a green factory at Bhaluka in Mymensingh. The company will raise Tk 150 crore from the capital market through the book building method, said Kamal Munasinghe, CEO of the company. Of the amount, Esquire Knit will use Tk 100.42 crore for building construction and the rest for buying machinery, he said at a press briefing held on the premises of the company’s factory at Kanchpur in Narayanganj yesterday. Moreover, the company will take a loan of Tk 346 crore from International Finance Corporation and the directors of Esquire Knit will provide Tk 86 crore, he said.
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