11 banks asked to cut non-performing loans
BDNEWS, Dhaka
In a bid to minimise default loan, Bangladesh Bank yesterday instructed managing directors of eleven banks to make a projection on what level they will be able to cut the ratio of non-performing loans (NPL) by June this year.All the eleven banks have over 10 percent of NPL while some of them have over 20 percent, said the sources. The BB suggested the bank MDs to write-off bad or non-performing loans through loan-loss provisioning or to go to court to settle these cases soon for minimising the NPLs. BB also suggested the banks to realise their loans from the top 20 borrowers as earliest as possible. Sources said the BB instructed the MDs at a review meeting to draft a projection aiming the month of June this year on how much they will be able to bring down NPLs. To make this effort a success, the BB will issue a formal letter to these 11 banks soon. Of the banks suffering from non-performing loan of over 10 percent are Pubali Bank Ltd, Uttara Bank Ltd, AB Bank Ltd, IFIC Bank Ltd, National Bank Ltd, City Bank Ltd, Oriental Bank Ltd, Al Arafah Bank Ltd, Social Investment Bank Ltd (SIBL), First Security Bank Ltd and Bangladesh Commerce Bank Ltd.
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