NCBs asked to take steps to improve performances

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FE Report
The Bangladesh Bank (BB) has asked the four nationalised commercial banks (NCBs) for taking measures to improve their overall performances through improving management efficiency, official sources said.
The central bank also directed the banks to update the inter-branch reconciliation, particularly debit entries, with their central accounts for ensuring financial discipline in the banking system.
The instructions came at a review meeting of the memorandum of understanding (MoU) held in the conference room of the central bank Monday with the BB Governor Salehuddin Ahmed in the chair.
The managing directors (MDs) of four NCBs -Sonali, Janata, Agrani and Rupali - and the central bank high ups attended the meeting, the sources added.
Earlier, the BB signed the MoU with the NCBs to improve their financial performances through providing policy supports.
The meeting reviewed various issues including credit growth, recovery of defaulted loans, costs of fund and implementation of the core risk management guidelines in line with the conditions of MoU laid down with the NCBs.
During the meeting, the central bank also asked the banks for taking measures to reduce the volume of default loans through intensifying the on-going recovery drives.
"It is a routine work," a BB senior official told the FE, adding that the central bank reviews the overall performances of the NCBs on quarterly basis.