Bangladesh Bank has decided to keep the top 177 loan defaulters under watch who took a loan of Tk41,900 crore, one third of the total default loan.
The central bank will shortly issue a circular to different commercial banks asking for the details of the defaulters.Each of the 177 borrowers took a loan ranging from Tk100 crore to Tk1,000 crore and turned defaulter.
Meanwhile, the regulator asked the commercial banks not to sanction further loan against the top borrowers and form a separate cell to watch them and formulate ways to recover the loan.
Before the budget Finance Minister AHM Mustafa Kamal sat with the Chief Executive Officers and Managing Directors of both public and private commercial banks and asked them to take special initiative to reduce the default loan.
However, Banking Regulation and Policy Department of the central bank is preparing a draft asking the commercial banks to submit the updated data of top defaulters regularly and fix up a time frame to recover the money.
The regulator will find out who are willful defaulters and who are unintentional defaulters, said an official of the central bank banking regulator department.
Former deputy governor of Bangladesh Bank Khandaker Ibrahim Khaled said the initiative of reducing default loans is the right decision.He told daily sun this is very appropriate decision as a large portion of the default loan is stuck to the top borrowers.
“The big borrowers are taking more money in different ways. Even if the banks can recover partial money from the top borrowers, the default loan will be very low,” Ibrahim Khaled said.
Replying to a question, the former caretaker government advisor
AB Mirza Azizul Islam said it is a very good initiative to bring top loan defaulters under special supervision.
But wait to see what will be the implementation process. In most cases, it is seen that the political effect prevents implementation of such good decision, he added.
Asked about the initiative of the central bank in the form of separate cell to recover default loan, banker MA Halim Chowdhury told this reporter that each bank has a separate division to collect debt. “There are separate cells for supervision of top 20 loan companies. But it is very difficult to recover money from the fraudsters. Let’s now see, what the central bank issues as new instructions,” he said.
He also said social pressure will be required to recover the money from the top borrowers.
On June 22, a list of top 300 loan defaulters was published in the national parliament after a series of discussions with the banks.
The amount of default loan of the companies is Tk50,942 crore. The list was published in line with the report of the credit information bureau.
The list included the names of much-talked about Hallmark, Bismillah, Crescent, N-tex, SA Group. The amount of defaulted loan of commercial banks stood at Tk41,900 crore.