Dhaka, Bangladesh (BBN) – The central bank of Bangladesh on Sunday asked four state-owned commercial banks (SCBs) to take effective measures for reducing of the volume of default loans to improve their financial health.
“We’ve cautioned the SCBs about reducing the volume of classified loans through expediting the ongoing recovery drives,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN after a review meeting on the Memorandum of Understanding (MoU) of four SCBs – Sonali, Janata, Agrani and Rupali – held at the central bank in Dhaka.
He also said the banks were asked to take necessary steps for vacating the writ petitions filed by different loan defaulters with the High Court.
The SCBs have already appointed senior and experienced lawyers, particularly for vacating the writ petitions of loan defaulters, an SCB executive said.
“We’ve already taken effective measures to vacate such writ petitions as part of our drives for recovering default loans, particularly from top 20 defaulters,” CEO and Managing Director of Janata Bank Limited SM Aminur Rahman said..
However, the senior BB official said the top executives of SCBs informed that the overall default loan position would improve during the second quarter of the current calendar year.
BBN/SS/SI/AD-27July09-2:27 am (BST)