Dhaka, Bangladesh (BBN)- The volume of non-performing loans (NPLs) in the country’s banking system decreased in the fourth quarters (Q4) of 2015 as strengthening recovery drives by the banks, officials said.
The amount of NPLs dropped by more than 6.0 per cent to BDT 513.71 billion during the October-December period of the last calendar year from BDT 547.08 billion in the preceding quarter. It was BDT 525.19 billion in the Q2 of 2015.
The share of NPLs also came down to 8.79 per cent during the period under review from 9.89 per cent three months back. It was 9.67 per cent in the Q2 of the last year.
“The amount of NPLs dropped during the period under review following strengthening monitoring and supervisions by the central bank,” SK Sur Chowdhury, deputy governor of the BB, told BBN in Dhaka.
Boosting recovery divers by the commercial banks have also contributed to fall the NPLs, the deputy governor explained.
Mr. Sur Chowdhury expects that the declining trend of NPLs will continue in the coming quarters.
The classified loans cover substandard, doubtful and bad/loss of total outstanding credits which stood at BDT 5846.15 billion as on December 31 last, the BB data showed.
Rescheduling and large loan restructuring have also contributed to fall the NPLs during the period under the review, another BB official observed.
The central bank of Bangladesh has already cleared proposals of 10 business groups for restructuring their large loans worth BDT 140.48 billion.
During the October-December 2015 period, the total amount of NPLs with six state-owned commercial banks (SoCBs) rose to BDT 237.45 billion to BDT 227.27 billion in the previous quarter.
On the other hand, the total amount of classified loans with 39 private commercial banks (PCBs) came down to BDT 207.60 billion in Q4 from BDT 245.78 billion in the previous quarter.
The NPLs of nine foreign commercial banks (FCBs) also fell to BDT 18.97 billion from BDT 21.16 billion.
The classified loans with two development-finance institutions (DFIs) came down to BDT 49.69 billion in the Q4 from BDT 52.87 billion in the Q3 of 2015.
On the other hand, the volume of NPLs increased by 2.42 per cent to BDT 513.71 billion as on December 31 last from BDT 501.66 billion a year before, the BB data showed.
BBN/SSR/AD