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Janata Bank’s profit jumps, NPL drops

The bank has strengthened credit monitoring and taken stringent actions against defaulters, said the MD at its AGM

  • Staff Correspondent
  • 27 June, 2022 12:00 AM
  • Print news
Janata Bank’s profit jumps, NPL drops
Janata Bank Managing Director Abdus Salam Azad speaks at the 15th annual general meeting of the bank at its head office in the capital on Sunday.

Janata Bank Limited witnessed a 20 percent rise in net profit in 2021 while its non-performing loan (NPL) remained below 18 percent during the same year.

According to an audited annual report, the state-owned bank’s net profit increased to Tk 3 billion in 2021 from Tk 143 million in the previous year.

The report was placed at the annual general meeting of the bank on Sunday.

“The NPL rate also comes down to 17.61 percent in 2021 from 22.69 percent a year ago while the classified loan stood at Tk 123.19 billion by December 2021,” said Janata Bank Managing Director Abdus Salam Azad at the 15th AGM held at the bank’s head office in Dhaka. “We have strengthened our credit monitoring and taken action against the defaulters,” he said.

Janata Bank MD said, “The biggest challenge now is to revive the financial sector, which has suffered

due to various domestic and international crises.

Janata Bank recorded over Tk 1 trillion deposits with 23.33 percent growth year on year while the earning per share (EPS) stood at Tk 12.98, around 20 times higher than 2020.

Before the AGM, marking 50 years of its founding anniversary, Janata Bank management paid tribute to Father of the Nation Bangabandhu Sheikh Mujibur Rahman at the Bangabandhu’s portrait at its head office.

Financial Institutions Division Additional Aecretary Mafiz Uddin Ahmed and Bangladesh Bank Supervisor Humayun Kabir were also present at the AGM presided over by Janata Bank Chairman Prof Mahfuzur Rahman.

In his speech, Janata Bank Chairman said the bank had overcome the challenges as the ledger continued to improve over the last three years.

“We have shifted focus from big loans to SME loans in line with the policy of financial inclusion. The agriculture sector keeps the rural economy vibrant bringing diversification of crops,” he said.

The chairman said, “The farmers are getting good returns in the cultivation of Dragon fruits. But its needs credit support to grow.”

Janata Bank disbursed Tk 23.45 billion agro-credit in 2021 while its SME loan disbarment stood at Tk 113.45 billion during the same period.

The state-owned lender saw a 34.09 percent growth in the investment sector with Tk 367.68 billion, of which, Tk 308.87 billion was injected to public securities.

The net asset of the bank increased by 19.77 percent year on year, the value of which is Tk 1.24 trillion.

Janata Bank Bank strengthened credit monitoring to cap the rate of NPL by taking firm actions against the defaulters.

The number of loss-making branches reduced to 39 in 2021 which was 51 at end of 2020.

The state-owned bank contributed Tk 9.06 billion to national exchequer as tax and supplementary duties in 2021 which was Tk 7.5 billion in 2020.

Janata Capital and Investment Limited, a stock subsidiary, earned Tk 1.17 billion operating profit in 2021, increasing from Tk 190 million in the previous calendar year.

The meeting was also attended, among others, by Janta Bank directors Ajit Kumar Paul, Shamsul Alam, Muhammed Asad Ullah, Ziauddin Ahmed, Abdul Majid, Bubina Amin and Meshkat Ahmed Chowdhury, deputy managing directors Abdul Jabbar, Zaminur Rahman, Asaduzzaman, Quamrul Ahsan, Nurul Alam and company secretary MHM Jahangir.