6 state-owned banks are running without managing director (MD) for almost a month. The chairmen of the institutions requested to appoint new MDs in these banks quickly.
They made this request by meeting Finance Advisor Salehuddin Ahmed at the Secretariat on Monday (October 14).
Sonali Bank Chairman Mohammad Muslim Chowdhury, Agrani Bank Chairman Syed Abu Nasser Bakhtiar Ahmed and Rupali Bank Chairman Nazrul Huda participated in this meeting.
The banks are – Sonali, Agrani, Rupali, Janata, Basic Bank and Bangladesh Development Bank (BDBL). On September 19, the Ministry of Finance sent a letter to the MDs of these six institutions to cancel their contracts.
The chairman of a bank who met with the financial advisor said that he (Chairman of the state bank) has requested to appoint MDs in the state banks as soon as possible. In view of that, the financial adviser said that he will look into the matter.
However, Finance Advisor Salehuddin Ahmed did not say anything when asked about the meeting of the state bank chairmen.
Meanwhile, on September 19, a letter was sent to the board of directors of the banks by the Financial Institutions Department of the Ministry of Finance canceling the contracts of MDs of six state-owned banks. Since then the MDs of the banks are no longer in office.
Some of the retired government officials and DMDs have started running as MDs of these banks. On the other hand, the board and management of public sector banks has been restructured by the Financial Institutions Department.
Among the government banks, Basic Bank and Janata Bank are in a fragile state. 65 percent of Basic Bank’s loans have already defaulted, amounting to Tk 8,256 crore.
Last June, Janata Bank’s non-performing loan rate stood at 52.00 percent or 48 thousand crore rupees. Meanwhile, defaulted loans have exceeded 70 percent. Beximco Group’s debt to the bank is Tk 25 thousand crores, S Alam Group’s debt is about Tk 10 thousand crores.
At the end of last June, the rate of defaulted loans in Agrani Bank was 30 percent or Tk 21 thousand 324 crore. About 15 percent of Sonali Bank’s total loans are in default, which earlier went to several institutions including Hallmark. At present, the risk of default has decreased for Sonali. And Rupali Bank’s defaulted loan is 23 percent or Tk 10,463 crore.
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