The global coronavirus has paralyzed everything, including business. Governments of all countries are also providing facilities with various incentives for improvement in all sectors. Bangladesh is not excluded from this list. The government has announced various concessions and incentives to improve business.
Banks have been exempted from many things to keep them well. Despite this, there is a provision deficit in 11 banks at the end of last December. The list includes 5 government and 8 private sector banks. The deficit of the banks has been shown to be Tk 6,147 crore. However, the actual deficit is much higher. In the interest of the depositor, the banks have to set aside money at different rates against different loans, which is called provision.
The central bank is giving some banks a few years to save provisions to make their financial statements look better. That is why the issue of actual deficit is not coming to the fore. According to the data of Bangladesh Bank, at the end of last December, all the banks were supposed to have a total provision of Tk 83,698 crore. However, the banks have saved Tk 83,073 crore.
Among the banks, the state-owned Basic Bank has a maximum deficit of Tk 3,026 crore. Among the state-owned banks, Rupali Bank has a deficit of Tk 622 crore, Bangladesh Krishi Bank has a deficit of Tk 165 crore, Agrani Bank has a deficit of Tk 132 crore and Prabasi Kalyan Bank has a deficit of Tk 6 lakh. Among the private banks, Bangladesh Commerce Bank has the highest deficit of Tk 509 crore. National Bank has a deficit of Tk 435 crore, Mutual Trust Bank has a deficit of Tk 211 crore, Dhaka Bank has a deficit of Tk 190 crore, Standard Bank has a deficit of Tk 133 crore and SIBL has a deficit of Tk 63 crore.
According to the data of Bangladesh Bank, the defaulted loans of the banking sector have decreased due to various reasons including the opportunity not to default even if the loan is not repaid. At the end of last December, the total loan balance of the banks stood at 10 lakh 95 thousand 72 crore. Of this, Tk 6,273 crore has been defaulted, which is 7.8 percent. Of these defaulted loans, Tk 6,656 crore is classified as harmful.