Dhaka, Bangladesh (BBN) – Normal cash transactions in the country’s banking system were hampered Monday — the second day of three-day countrywide shutdown — enforced by a number of political parties, bankers said.
Bankers, however, feared an adverse impact on export-import business, demand for credit, default loans and profitability of banks if the prevailing situation persisted.
The movement of cash from one branch to another was seriously affected during the strike hours on Monday across the country. The situation may further worsen if the strike continues, they added.
“The cash transaction still remains almost normal, thanks to Automated Teller Machine (ATM) and online banking,” a senior official of a leading private commercial bank (PCB) told BBN in Dhaka.
The private banker also said the individuals now prefer using ATM booths rather than going to bank branches for withdrawal of cash while the corporate clients are managing their cash transactions through internet banking.
The bankers, however, feared that credit demand, particularly for financing of trading activities and import of capital machinery, may fall in the coming months until the prevailing conformational political situation is improved.
“The amount of classified loan portfolios may increase further in the next quarter if the country’s overall socio-political conditions continue to persist in their confrontational form,” the banker said, adding that the banks’ profitably may also be hit by the end of this calendar year.
BBN/SSR/AD-04Marc13-5:38 pm (BST)
