Dhaka, Bangladesh (BBN) – Overall shortfall in provisioning against loans in the banking system of Bangladesh swelled by more than 20 per cent during the first nine months of this year.
The total amount of provisioning shortfall rose to BDT 81.27 billion as on September 30 from BDT 67.67 billion nine months ago, according to the central bank’s latest statistics.
The shortfall was BDT 79.80 billion as on June 30 this year.
Talking to the BBN, a senior official of the Bangladesh Bank (BB) said higher growth in non-performing loans (NPLs) pushed up the amount of provisioning shortfall with the banks during the period under review.
The amount of classified loans rose by nearly 34 per cent or BDT 250.67 billion to BDT 993.70 billion as on September 30, from BDT 743.03 billion as on December 31, 2017, the BB data showed.
The public sector banks have faced more provisioning shortfall than that of the private commercial banks, the central banker explained.
A total of 12 banks, out of 57, failed to keep the requisite provisions against loans, particularly the NPLs, in the third quarter (Q3) covering July-September period of 2018, the BB data showed.