The state-owned Janata Bank has sought the government's necessary steps for recovering its Tk 18.38 billion worth of outstanding loans from the Bangladesh Sugar and Food Industries Corporation (BSFIC) and some other sugar mills.
Managing Director of Janata Bank Md. Mazibur Rahman in a letter recently sought the Finance Ministry's intervention in this regard, official sources said.
As of June 30, 2025, the BSFIC owes Tk 5.73 billion to the state-run Janata Bank while the outstanding liabilities of Carew & Co, North Bengal Sugar Mills ltd, Shyampur Sugar Mills Ltd and Pabna Sugar Mills with the bank stood at Tk 3.36 billion, Tk 6.05 billion, Tk 255 million and Tk 3.0 billion respectively, the letter mentioned.
Such accumulated liabilities include loans and interest, it was learnt.
An official said though the tenures of loans expired in December 2018, such loans were to be classified as per the instruction of Bangladesh Bank.
At present, the loans are being treated as unclassified following the government guarantees and tripartite agreements to this effect, officials said, adding that the Bank has been reporting about the same to the BB's CIB on a regular basis.
The Janata Bank MD in its letter claimed that since the tenure of the loans and the state guarantee against
such the same expired, the interest on such loans could not be shown as the bank's income as per the instructions of the BB, which badly affected the bank's overall profit as well its capital.
Apart from that, there has been a negative impact on its credit rating and CAMELS rating, Mr. Mazibur Rahman mentioned in the letter.
Such a situation is not only tarnishing the bank's reputation in home and abroad, but also affecting its operations, the bank head mentioned.
He also claimed that if the bank gets back its outstanding loans, it would create a positive impact on the bank's operations, improving its rating and CAMELS ratings.
Considering the situation, the Bank sought the finance ministry's steps either to extend the tenure of the state guarantee or issue bonds to help settle its outstanding loans.
The state-owned Janata Bank had been hit by alleged big-business lending scams.
When contacted, a high official at the finance division under the Ministry of Finance (MoF) said: "We've received the letter from the Janata Bank and it is now under scrutiny."
He further said no decision has yet been taken in this regard.
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