BB asks NCBs to pace up drives to reduce default loans

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FE Report
The Bangladesh Bank (BB) has asked the four nationalised commercial banks (NCBs) to take measures to reduce the volume of default loans through strengthening the on-going recovery drives, official sources said.
The instruction came at a review meeting on Memorandum of Understan-ding (MoU) held at the conference room of the central bank Tuesday with BB Governor Salehuddin Ahmed in the chair.
Managing directors (MDs) of four NCBs and central bank high-ups attended the meeting.
Earlier, the BB signed the MoU with the NCBs to improve their financial performances through providing policy supports by the central bank.
During the meeting, the central bank asked the NCBs to appoint senior lawyers to facilitate early disposal of cases relating to classified loans and follow up continuously to recover the money from defaulters.
Earlier, the central bank directed the commercial banks and non-banking financial institutions (NBFIs) to appoint experienced lawyers for taking legal measures, including applying for vacating the writ petitions filed by the loan defaulters in the High Court.
Besides, the BB also ordered the state-owned banks for taking necessary measures to recover non-performing loans from top 20 defaulters.
The meeting reviewed various issues including credit growth, recovery of default loans, cost of fund and implementation of core risk management guidelines in line with the condition laid down in the MoU with the NCBs, the sources added.