Dhaka, Bangladesh (BBN)– The state-owned commercial banks’ (SCBs) operating expenses increased significantly in 2012 against 2011 despite the central bank’s directive in compliance with the memorandum of understanding (MoU) signed earlier.
The BB had given a directive to the SCBs to reduce expenses as set in the MoU with the central bank, officials said.
The operating expenses of SCBs are on the rise due to lack of proper competitive operation policies practiced by the country’s other scheduled banks, they added.
The operating expenses of Sonali Bank increased by BDT 370 million to BDT 11.19 billion in 2012 from BDT 10.82 billion in 2011, according to official data.
The operating expenses of Janata Bank, Agrani Bank and Rupali Bank rose by BDT 347 million, BDT 729 million and BDT 30.8 million to BDT 7.47 billion, BDT 7.02 billion and BDT 2.99 billion respectively in December 31, 2012 up from BDT 7.13 billion, BDT 6.30 billion and BDT 2.95 billion for the same period a year before respectively.
The BB officials said each SCB may increase 10 percent operating expense in every year against the previous year.
The four banks had signed MoU with the central bank for developing banking operations including operation costs, availability of capital, realization of default loans, reduction of loss incurring branches and risk management.
The provisional operating profits of Sonali Bank stood at BDT 15.08 billion, while Janata Bank, Agrani Bank and Rupali Bank’s provisional operating profits stood at BDT 14 billion, BDT 13.14 billion and BDT 3.67 billion respectively in the year ended December last year respectively.
BBN/SSR/AD-11Mar13-11:00 am (BST)