DHAKA: Governor of Bangladesh Bank (BB), Dr Atiur Rahman, warned four state-owned commercial banks for violating its lending rules to a single borrower.
The four SCBs — Sonali, Janata, Agrani and Rupali have reportedly disbursed loans to their 10 big clients in violation of BB’s rules regarding the single borrowers’ exposure limit. BB issued the warning at a meeting between the SCBs and the BB held at the central bank headquarters in the capital.
Atiur Rahman presided over the meeting. Managing Directors and Chief Executive Officers of the four banks also attended it.
According to Bank Company Act-1991, the outstanding amount of loan to a single person, counterparty or a group will not exceed 15 per cent of the capital of a bank at any point of time, but the SCBs have reportedly disbursed loans to the single borrowers at 30 to 40 per cent of the size of their capital, meeting sources said.
They said, the authorities of the central bank also asked the SCBs to take immediate steps to bring down the loans of single borrowers within the tolerable level, speed up their recovery of defaulted loans, improve internal control and complete their automation process as soon as possible. BB also expressed concern over the rising classified loans of the banks.
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