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Banks see rise in assets in H1

It’s a good sign for economy: Economists

  • Anisul Islam Noor
  • 7 September, 2019 12:00 AM
  • Print news
Banks see rise in assets in H1

The private commercial banks are doing well when it comes to creation of skilled entrepreneurs and asset management, which contribute to enhance bank capital.  

According to the economists, the country’s banking sector is currently facing several challenges including the increased classified loan, the financial position of the banks are stronger than any other institutions.

The rise in bank assets is a sign of good omen for the future economy, they opined.

Khondkar Ibrahim Khaled, former Deputy Governor of Bangladesh Bank, told daily sun that the country’s banking sector is playing an important role in booming economy.

At present, the private sector stands on a strong foundation due to continued efforts of some private banks. The banks created very potential entrepreneurs in garment sectors, leather, shipbuilding, fisheries and such like, he said.

The assets of listed 30 private banks in the share market have increased gradually shown in the latest financial reports prepared by Bangladesh Bank based on the January-June period this year.

According to the report, the name of Islami Bank Bangladesh Ltd (IBBL) is above all other banks considering its assets. The amount of assets of IBBL is Tk1.5 trillion at the end of June this year which was Tk99,795 crore in last December. It means that the amount of IBBL assets increased to Tk6140 crore.

Among the listed banks, Pubali Bank ranks second in terms of assets amounting to Tk44,370 crore. At the end of December last their asset was Tk41022 crore.

United Commercial Bank followed Pubali Bank. The amount of assets of the bank is Tk43,451 crore.

The banks with over Tk40000 crore also include Southeast Bank and First Security Islamic Bank.

Of them, the assets of Southeast Bank stand at Tk41180 crore at the end of June this year, which was Tk 38157 crore at the end of December 2018. The assets of First Security Islami Bank is Tk40242 crore, which was Tk37218 crore in December 2018.

The assets of other bank have also increased in the first half of this year.

“The bank plays an important role in our capital markets,” said a member of the DSE, who did not want to be named.

Bank was once considered the lives of the capital market. Periodically, the bank’s contribution has declined somewhat. But still the bank plays a vital role in the rise and fall of the capital market, he added.

The DSE member also blamed the banking sector for the recent instability in the capital market, saying that the banks are involved in various irregularities.

The increasing asset of banks is a good sign, but will the benefits go to the investors? he posed the question.

If the bank paid good dividends to shareholders, the capital markets as well as the investors would be benefited as well, he opined.