BASIC Bank's default loans continue to escalate in the face of irregularities, despite Bangladesh Bank's efforts to keep it in check, The Daily Star reported. By the end of June, it is forecast to hit Tk 1,700 crore, up 13 percent from March 30, according to a finance ministry report placed in parliament on Thursday. The figure is 13.45 percent of the state-run scheduled bank's total outstanding loans, and a central bank official tipped the actual figures to be much higher as the bank showed a huge amount of bad loans to be non-classified. The report also found that the bank's financial condition is worsening by the day, with its capital eroding at an alarming rate. The minimum capital requirement as per BB's stipulations is 10 percent against the risk-weighted assets, but BASIC's stood at only 4.5 percent at the end of March. One of the best-run banks till 2009, BASIC has been mired in financial irregularities in recent years, with the bank counting losses—of Tk 43.2 crore—for the first time last year. Read more.
Location