Dhaka, Bangladesh (BBN)- The central bank has asked the BASIC Bank Limited to reduce the amount of classified loans through intensifying recovery derives, officials said.
The instruction was made at a review meeting of the BASIC Bank management held in the central bank headquarters in Dhaka on Monday with Deputy Governor of the Bangladesh Bank (BB) SK Sur Chowdhury in the chair.
“The central bank has directed the state-owned specialised bank for taking effective measures to improve their financial health immediately through expediting non-performing loans (NPLs) recovery drives,” a BB senior official told BBN in Dhaka.
He also said the meeting discussed different issues including establishing good governance for avoiding any irregularities in future.
The overall NPLs of the bank rose to BDT 61.48 billion as on September 30 last from BDT 18.63 billion a year ago, the BB data showed.
The BB earlier found different types of irregularities by the BASIC Bank in giving out loans, which include no verification of customer's creditworthiness, absence of know your customer (KYC) procedures, and extending loans to defaulters.
The central bank investigations also detected financial irregularities involving around BDT 50 billion of loans in the three branches located at Gulshan, Dilkusha and Shantinagar in Dhaka between 2009 and 2013.
BBN/SSR/AD-20Jan15-12:33pm (BST)