Operating profits of most of the banks are seeing a sharp fall due to the slowdown of businesses for the ongoing coronavirus pandemic.
Market analysts and bankers said operating profit of most of the banks witnessed a falling trend due to the forced lowering of interest rates to 9 percent, and ongoing Covid-19 pandemic.
However, operating profits of a few banks including National Bank have increased despite the Coronavirus pandemic.
A banker said the operating profit made by the banks this time is not real profit.
He said many banks are also showing unpaid interest in the income sector and the operating profit is showing some modesty. Customers get year-round relief from the obligation to repay the loan installments, he added.
Syed Mahbubur Rahman, former chairman of the Association of Bankers Bangladesh and chief executive of Mutual Trust Bank, said the first push to reduce the bank's operating profit was to bring down interest rates on loans to 9 percent.
The Corona epidemic hit the bank's operating profit as the second blow, he added.
“For a year, the customers have not defaulted without repaying the loan. Many customers have taken full advantage of the opportunity. The picture of the banking sector as a whole is not pleasant,” he mentioned.
Rahman said the central bank has asked for an additional 1 percent reserve to strengthen the banks' base.
In this situation, it will be difficult for many banks to maintain net profit in the outgoing year, he said adding that some customers may not be found when the countdown to the defaulted loan begins.
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Banks need to be prepared now to deal with the impact of bad debts, he mentioned.
Non-performing loans decreased by 1.74 percent to Tk 94,440 crore in September last year, according to Bangladesh Bank data.
Although Islami Bank Bangladesh Limited secured top position, operating profit of Islami Bank Bangladesh Limited declined to Tk 1,800 crore in last year till 30 December over the previous year amounting to Tk 2,500, according to the information received.
Dutch-Bangla Bank has made the second highest operating profit among the private banks in the outgoing year.
In 2020, the bank made an operating profit of Tk 1,100 crore against Tk 1,190 crore in the previous year.
IFIC Bank has made a profit of around Tk 300 crore in 2020 over Tk 512 crore in 2019
Mercantile Bank has made an operating profit of Tk 450 crore in 2020 against Tk 753 crore in 2019.
Besides, in 2020, many banks also decreased operating profit including South Bengal Agriculture and Commerce Bank 150 crore, Shahjalal Islami Bank 415 crore, One Bank 315 crore, Social Islami Bank 500 crore, Bank Asia 710 crore, Southeast Bank 770 crore, Prime Bank 560 crore, UCB about 700 crore, Pubali Bank 935 crore, NCC 571 crore, Jamuna 640 crore, Al-Arafah Islami Bank 710 crore, Dhaka Bank 550 crore, Exim Bank 741 crore and Eastern bank 810 crore.
However, operating profits of National Bank, Premier Bank, First Security Islami Bank, NRB Commercial Bank, NRB Global Bank, Madhumati, Union and Meghna Bank increased despite the disaster.
The first generation National Bank Limited has also reported an operating profit of Tk 1,015 crore.
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