The ministry of finance (MoF) has instructed the state-owned
commercial banks (SoCBs) to submit their business plans to address their
problem of capital inadequacy by October, sources said.
Until March 2013, the four state-owned banks had a shortfall,
to the tune of Tk 96.42 billion, in aggregate requirement for their capital.
Such shortage in case of Sonali Bank stood at Tk 52.44 billion, for Agrani
Bank, Tk 21.20 billion, for Rupali Bank, 11.64 billion, and for Janata Bank, Tk
11.14 billion.
The MoF asked the banks to mention, in the business plan,
the status of pursuing the conditions of memoranda of understanding (MoU) that
they signed with the central bank, the stage of automation of banking
activities, realisation of money in cash from the top 20 defaulters, stress
test reports, and updated position for preparation of their respective
liquidity risk management policy.
The banks were also asked to inform about the status of
progress relating to setting up of risk management units in their respective
financial institutions. Furthermore, they were directed to provide updated
reports about their respective progress in pursuit of the guidelines of the Bangladesh
Bank about core risk management. The SoCBs were also told to furnish
information to the MoF about the steps that they had taken to settle the
pending loan-default cases and audit disputes and to help reduce the burden of
their respective non-performing loans.
In the letter sent to the managing directors and the chief
executive officers (CEOs) of the banks, the MoF asked for submitting their
respective time-specific plans.
Earlier, at a meeting at the MoF conference room, Finance
Minister AMA Muhith expressed resentment over poor performance of state-owned
banks about improving their operational conditions.
Transparency and good governance, he observed at the
meeting, are yet to be ensured in the state-run banks due to the failure of
their automation in time. This has been hindering efforts for providing proper
services by them to their customers, he noted.
Mr Muhith asked the banks to expedite actions on core
banking solutions on a priority basis from the fund given by the government for
their recapitalisation.
News Source:
Financial Express
Dated:- 24-Oct-2013
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