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| :: State banks miss non-performing loans target ~ |
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The working group of Bangladesh Bank has expressed dissatisfaction over the performance of two state-owned commercial banks, Sonali and Janata, for their failure to meet the target of reducing non-performing loans.
The group after a performance evaluation of the SCBs submitted a report to the finance ministry on November 15, suggesting revision of two clauses of non-performing loan contract to remove inconsistency in the target of reducing NPL.
At present, one clause of the NPL contract sets the target at 50.20 per cent when the other clause sets it below 10 per cent.
However, the NPL of the Sonali bank decreased by 31.77 per cent as of June 2009 against the target of 36 per cent, set in the contract.
The bad loans of the Janata Bank decreased by 11.06 per cent as against the target of 12 per cent during the period, the WG report added.
The WG in its report has also recommended that the working hours and leave facilities of the chief executive officers or managing directors of the three SCBs would be determined under the existing rules and regulations applicable to a public servant.
Agrani Bank CEO and managing director Syed Abu Nasir Bukhtiar Ahmed told New Age that, ‘Sometimes the targets set by the WG are irrational.’
He said that the target set by the WG to bring down the NPL to zero by June 2010 was unrealistic, which would also put pressure on the CEOs of the SCBs to meet the target or leave the banks. |
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