Rupali Bank spends Tk 136, Sonali Tk 99.19, Janata Tk 94.90 and Agrani Tk 96.43 to earn every one hundred taka, according to an earning analysis of the four NCBs till March 31, 2003.

The NCB officials contribute this abnormally high cost to wastes, corruption and non-commercial operation.

The four NCBs had to set aside Tk 3,296 crore in suspense accounts because of bad portfolios. Otherwise, this amount would have been accounted for the banks' earnings as interest on assets.

The officials said under such circumstances, the NCBs are unable to cut lending rates and make profits.

They said the trade union leaders of one bank illegally use 25 to 30 gallons of fuel every day for their own benefits. Similar allegations of abuse of bank property also go against the executives of the officers' associations. The finance ministry also liberally uses vehicles of the banks.

As examples of non-commercial attitude of the NCBs, a central bank comparison shows that the state-owned banks charge a minimum of Tk 500 as commission for bank guarantee while the private banks charge Tk 1,500 and the foreign banks Tk 2,500 for the same service.

Because of such disparities in other services as well, while income other than interest accounts for 40 to 50 per cent of the earnings of the foreign and private banks, it hardly rakes in 20 per cent of the NCB income.

Frequent waiver on interest, directed soft loans in agriculture and exports and free bill collection service to different government agencies like Titas, the Bangladesh Telegraph and Telephone Board and Dhaka Electricity Supply Authority also take toll on their cost-earning ratio.

Excess manpower -- one-third of the total force, as the Bank Reform Committee earlier said -- and loss-making branches also eat up a chunk of income.