No more refinancing

Finance Minister asks bankers for new work strategy

The government has asked the newly appointed MDs and Chairmen of four leading state owned commercial banks (SCB), Sonali, Agrani, Janata and Rupali to submit their working strategy for their own survival within the next seven days.

Finance Minister, AHM Mustafa Kamal made the directives in a meeting he held with the Chairmen, Chief Executive Officers (CEO) and Managing Directors of those banks at the conference room, NEC, Planning Ministry.  During the meeting, Kamal said the government has decided not to refinance or allocate any more fund 

for the state run banks Sonali, Agrani, Janata and Rupali to meet their capital shortfall. "The government is allocating fund every year to meet the demand of the capital shortfall of those banks, but from now on this opportunity will not exist, we used to do it to cover their loss but that's the story of past, no more refinancing from now, because they have to earn their necessary amount", said Finance Minister.  Replying to a media query, Minister said there have no budgetary allocation for the banking sector in this year's budget.

"Many people are concerned over the liquidity crisis but the amount of our liquidity is more than 92,000 crore, position of deposit is also good so position of banks are good in this context", Kamal said.  They will have to draw their salary by earning profit by their own and the minimum ratio of profit will be 15 percent. The volume of four leading public banks are so huge, if desire, these four banks alone can expedite the overall banking sector of the country    Minister expressed his hope that the GDP ratio will not get down below the 8 percent mark because of the ongoing massive development works of the last 3 years. He advised the senior bankers utilize their resources properly and disburse credit after following proper due diligence.  Replying another query regarding non-performing loan, Minister said earlier the NPL did not come down because the exit plan was not implemented.