BB asks for banks’ recovery targets on top 20 defaulters

The central bank has asked commercial banks to set targets of loan recovery from top 20 defaulters for 2018 upon the approval by their respective board of directors.

The Bangladesh Bank (BB) has also given the banks a 10-day timeframe for submitting their loan recovery targets to its concerned department.

The banks have also been asked to submit the progress reports on the recovery of loans against the targets on a quarterly basis to the central bank 10 days after informing their boards.

The BB, in its instruction, said although a lion's portion of classified loans is held by top 20 defaulters, the recovery from such loans remains poor.

So it is necessary to reduce the volume of default loans in order to check the growth in top 20 default loans, it added.

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