Four banks have a capital deficit of 51,500 crore taka.
The financial basis of a bank can be understood from its capital structure. The better the capital structure of a bank, the stronger the financial basis of that bank. The state-owned Sonali, Janata, Agrani and Rupali Banks are at the bottom of this index. A report by Bangladesh Bank has shown that the capital deficit of these four banks stood at Tk 51,500 crore as of last June. Although the actual deficit is about Tk 90,000 crore.
Basically, the real picture of the capital deficit has been hidden by taking large deferral facilities from the central bank to preserve provisions to make it look a little better. Still, the risk-based capital adequacy ratio of all three of these four banks has fallen into a negative trend. Although the other is in a positive trend, it is far below the acceptable limit. Basically, the banks have been running with large deficits year after year, losing capital due to various irregularities, corruption and looting.
In this regard, Agrani Bank Chairman Syed Abu Naser Bakhtiar Ahmed told our time, I also think that the real picture of who has a capital deficit should be reflected. Because if you see it, it is easier to plan. When I was the MD of this bank in 2004, there was a capital deficit of Tk 500 crore. To meet this deficit, I did not take money from the government. Even then, I met the deficit at that time, that is the real test. But now the bank is in a big deficit. How can it be met without the help of the government? Asked how it is possible to meet it, he said, “We have assets, which are stuck in default. Now we are moving forward with a plan on how to recover these loans. If we can reschedule and restructure them according to the rules, then what we call non-performing loans will become performing. Then, as the loan will be returned, we will be able to take its interest in the income section. But if it is in the defaulter’s book, we will not be able to do anything, on the contrary, there will be pressure on the capital.
How much deficit is there in which bank: Janata Bank has the highest capital deficit among these four state-owned banks. As of last June, the bank’s capital deficit including deferral facility stood at Tk 46,358 crore. Agrani Bank is in second position in terms of capital deficit. The bank has a deficit of Tk 26,563 crore including deferral facilities. The deficit including deferrals of Rupali Bank, which is in third position, is Tk 11,302 crore. And the deficit including deferrals of Sonali Bank was Tk 5,732 crore.
The capital adequacy ratio of the three is negative, the other is also below the acceptable limit: Janata Bank is the most negative in terms of capital adequacy ratio. As of last June, this bank’s CRAR was negative 14.58 percent, which deteriorated further in September to negative 32.26 percent. Agrani Bank’s CRAR was negative 8.94 percent in June, which deteriorated further in June to negative 10.91 percent. Rupali Bank’s CRAR was negative 4.19 percent in June, which deteriorated further in September to negative 4.38 percent. However, Sonali Bank’s CRAR is on a positive trend. Last June, the bank’s CRAR was 6.37 percent, but in September it deteriorated to 5.54 percent. This rate is much lower than the 10 percent set for the banking sector. It is known that the central bank was asked to provide action plans to fill the capital deficit of the banks in August. At that time, after reviewing the action plans submitted by the banks, Bangladesh Bank said that the action plans submitted by the banks to overcome the problem were not helpful in the short or medium term.
Unrestrained growth of defaulted loans behind the capital deficit: Behind the capital deficit of these banks is the unbridled growth of defaulted loans. Because each bank has to maintain a safety reserve or provision considering the class of their loans. In this case, there is a rule to maintain a provision of 20 to 100 percent against defaulted loans. And against regular loans, it is 5 percent. As a result, the more the bank’s defaulted loans increase, the more the need to maintain provisions increases. And if the provision cannot be maintained, the capital deficit naturally increases. According to Bangladesh Bank data, the defaulted loans of these banks have increased to Tk 116,597 crore as of September last year. This is about 41 percent of the total defaulted loans in the entire banking sector.
Do Follow: greenbanglaonline24
