4 state banks asked for faster recovery of default loans

The Bangladesh Bank today ordered four state banks to speed up their cash recovery programme from defaulters as they showed a lacklustre performance to realise delinquent loans.

In addition, the central bank asked them to take prompt measures to bolster the capital base of the lenders, which have been facing capital shortfall for long.

The four state lenders – Sonali, Janata, Agrani and Rupali – were also asked to invest their excess funds in order to ensure their desired profits.

The BB gave the instructions at a quarterly meeting as part of memoranda of understanding between the banking regulator and the four banks.

BB Governor Fazle Kabir presided over the meeting at the central bank headquarters when managing directors of four banks were present.

The banking regulator also asked the banks to avoid regulatory forbearance while keeping required provisioning against non-performing loans and unclassified loans.