Logo

Wednesday, September 18, 2019

NPL won't increase anymore, reiterates AHM Kamal

Economic Reporter :
Finance Minister AHM Mustafa Kamal on Tuesday reiterated that the amount and number of the Non Performing Loans (NPLs) would not enhance anymore as there would remain no measure which would shoot up the NPL.
"I believe, the NPL would not increase anymore as there will remain no measure for enhancing the NPL, "he said after holding a meeting with the Chairmen, Managing Directors and CEOs of the four state owned banks namely -
Sonali Bank Ltd, Agrani Bank Ltd, Rupali Bank Ltd and Janata Bank Ltd - at the NEC Conference Room-1 in the city's Sher-e-Bangla Nagar area.
Financial Institution Division Senior Secretary Md Ashadul Islam and the Chairmen, Managing Directors and CEOs of these four banks attended the meeting.
Kamal said those who are involved in the banking scams, either the customers or the bank officials, are being brought under the purview of law.
"Punitive measures are being taken against the culprits. We are taking due legal process where it is applicable. Where it is not applicable, we're planning to bring changes in to the law. That's why NPL won't increase," he said.
The Finance Minister informed that the statements of these banks would be made public on quarterly basis as the government wants to run these banks with transparency and accountability.
He said that these four state owned commercial banks on Tuesday submitted their work plan before him on how to run those effectively so that their operating profit increases side by side their revenue expenses decreases.
"We've reached into a consensus on how to get rid of the NPL culture," he said adding that from now on if any borrower take loan from the banking channel, it would be adequately covered either in the form of mortgage or any other thing.
Apart from this, the Chairman and directors of the borrowing entities would also have to give personal guarantee so that action could be taken against them if they fail in debt servicing.
Noting that these four banks play an important role in the country's banking sector as well as in the economy, Kamal said he would sit with the high-ups of these banks in every three months to evaluate their performances.
"I believe, the way we've taken our plans and thus could implement those properly, there would remain no concern over these banks. We won't anymore need to suffer for these banks," he added.
When asked which laws would be amended, the Finance Minister said they would amend the concerned laws where there are deviations. "If so, both the borrowers and lenders would be benefitted,"
Replying to another question over the formation of the banking commission, he said at first the government is putting emphasis on bringing all the necessary things in place through reforming the necessary laws, rules and regulations.
He, however, declined to make any comment about the reserve heist at the Bangladesh Bank since it is a sub-judice matter.