At least Tk 5.6 billion of six state-owned banks (SoBs) remained stuck against 2,02,460 cases filed to recover the money from farm loan borrowers, statistics show.
By the end of the third quarter of 2014, since January 1991, some 10,297 borrowers could not be traced even after warrants of certificate cases were served. As a result, Tk 260 million has become stuck.
Statistics show that in September last, some 1,538 certificate cases were settled recovering only Tk 66 million while at the same time, 941 fresh cases involving Tk 44.5 million were filed.
Until September last, the Bangladesh Krishi Bank (BKB) had the highest 91,381 cases pending, involving Tk 2.59 billion. In the same month, some 327 cases involving Tk 15.3 million were settled. The bank could not trace 5,507 borrowers after warrants involving Tk 142.5 million were served at the end of September.
In the same month, the Rajshahi Krishi Unnayan Bank (RAKUB) had 31,258 pending cases involving Tk 1.42 billion. The bank had issued some 888 warrants involving Tk 23.2 million until September last. But the borrowers could not be traced.
The Agrani Bank Ltd had 34,780 pending cases under which Tk 560 million remained stuck until September. The bank settled 208 cases and filed 180 fresh ones in the same month. It had 877 issued warrants involving Tk 16.4 million but the borrowers could not be traced.
Until September last, the Sonali Bank Ltd had 21,778 pending cases involving Tk 539 million. It settled only 78 cases in the same month and filed 81 fresh cases. The bank had issued 960 warrants at the end of the same month to borrowers who could not be traced.
The Janata Bank Ltd had 20,054 pending cases where Tk 447 million remained stuck until September last. It settled 563 cases and filed 312 fresh ones in the same month. It had served 1,696 warrants of certificate cases involving Tk 32.8 million. Here too, the borrowers could not be found.
Until the third quarter of 2014, the Rupali Bank Ltd had 3,209 pending cases involving Tk 40 million. The bank settled 61 pending cases and filed 18 fresh ones in the same month.
General Manager of the Bangladesh Bank's Agricultural Credit and Financial Inclusion Department Provash Chandra Mallick told the FE Friday both the central bank and the government have given special attention to reducing the number of certificate cases and recover the money involved.
He said during meetings with the higher authorities of the banks every two months, the central bank reviews the number of pending cases, settlement and filing of new cases.
"We are constantly asking the bank authorities to bring down the number of cases and to be cautious while granting new loans."
Mr Mallick said the district agriculture coordination committees, led by the deputy commissioners (DCs), also meet once a month where the state of certificate cases is reviewed and necessary directives are given.
In the meetings, he said, the DCs also ask the local bank managers and Upazila Nirbahi Officers to settle the cases as early as possible and recover the money.
Mr Mallick said due to constant monitoring by the central bank and the local administration, the number of cases settled has increased compared to filing of fresh ones.
Replying to a query, he said the number of certificate cases against missing borrowers is high in river bank erosion-prone areas.
"Borrowers leave areas losing their lands and homes causing huge financial loss to the banks," he added.
syful-islam@outlook.com
Tk 5.6b farm loan stuck against 0.2m cases
Syful Islam | Published: November 15, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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