Wednesday, September 18, 2019 | ePaper

Capital shortfall in state-run banks

  • Print
More than two-third state-run banks faced capital shortfall in the first quarter of the year. Though the situation was gloomy, but the government is yet to take any action against the bank authorities for unwisely wasting public money in the name of issuing default loans.  Quoting Bangladesh Bank data, the newspaper reported that as of March, Agrani, BASIC, Janata, Rupali, Bangladesh Krishi and Rajshahi Krishi Unnayan had combined capital shortfall of Tk 15,953.41 crore.
The government has not stopped injecting capital into the State-owned Banks every year though economists have opined negative about the process terming it a bad practice. We also repeatedly penned down pinpointing that this cannot be a good method for the State-run Banks to continue their operation. What's frustrating is that there has been no improvement in their capital base or their corporate governance even after getting a huge amount of government money in a regular basis. According to data available, the government has so far injected a total of Tk 20,584 crore into the State Banks in the last 17 years and the amount is Tk 1,500 crore for this year.
It's an open secret that most of the State-run Banks are engaged in financial corruption, like the private banks. Despite taking stringent measures against the corruption, Bangladesh Bank has a bad tendency to hide the actual scenario of banking sector. We must say, it will be a big blow for the government if immediate measures are not taken in this regard. Otherwise, the capital shortfall will multiply which will fell the government into a helpless situation.  
Apart from State-owned Banks, most of the country's private commercial banks are also suffering from a deficit of capital. The situation is worsening as these banks have now started dipping into their core capital.  Most of them are operating on taxpayers' money. That means, the overall condition of country's banking sector is not good at all.
When the country's banking sector is falling into a black hole, it should not be wise wasting time in idle. The authority concerned must take immediate actions to resolve the crisis. Otherwise, there will be no alternative but to stopping these banks from operating which would not be very healthy for the economy.

More News For this Category

Immediate steps needed to arrest onion price

THE prices of onion shoot up overnight after traders hiked rates in the wake of restriction imposed by India on shipments of tubers to other countries to contain its domestic

A teacher cannot shift his responsibility onto parents and be cruel

NEWSPAPERS reported that 12th-grader student of Dhaka's Banophool Adibashi Green Heart College Shahriar Alam Akash, 19, was injured after jumping off a three-story building on Monday as his teacher allegedly

Save the Rivers

Professor Dr. Ahmad Kamruzzaman Majumder :"River is a living entity, ensure its legal rights". In keeping with this theme, Rivers Day is being celebrated across the country as like as


Saleem Samad :The Arakan Rohingya Salvation Army (ARSA) is accused of abducting Rohingya refugees, arbitrary detention and torture of people, and attacks on women aid worker.Operating under their former name

Blind Men's Song

Cesar Chelala :Continuous crises in several African countries remind me of the first of many times I visited that continent. I think about Malawi, a country where I went several

About a missing laptop and the Rohingyas

THE Anti-Corruption Commission (ACC) on Monday revealed that several Rohingya people have managed entry into national identification server through a "lost laptop" of Election Commission, which was used for NID

Check widespread corruption before it is too late

ROAD Transport and Bridges Minister Obaidul Quader yesterday said that investigation would be conducted against allegations of purchasing defective buses by the Bangladesh Road Transport Corporation from India. He said

The Dictator

Peta Thornycroft :The streets of Harare remain the same: dirty, decrepit while people are looking for fuel and power, and hardly seem concerned that the man most of them knew

Student Dropout

Gazi Md. Abdur Rashid :Quality of education is a significant tool that plays a major role in the development of every nation. Looking at the education of Bangladesh, we can

Take steps against deforestation

THE Parliamentary Standing Committee on the Ministry of Environment, Forest and Climate Change has revealed that different organisations and individuals have occupied 279,096 acres of forest land in last 50�60