BB asks ICB Islamic Bank to recover loans from top 20 defaulters
Friday, 17 October 2008
FE Report
The Bangladesh Bank (BB) has asked the ICB Islamic Bank Limited to intensify drive to recover non-performing loans, particularly from its top 20 defaulters.
The instruction came at a review meeting with management of the bank at the central bank Thursday with BB Deputy Governor Murshid Kuli Khan in the chair.
The bank has also been asked to take initiative to increase the flow of inward remittances from Malaysia using banking channel, officials said.
Meanwhile, the central bank took a move to boost the inflow of remittances from the East Asian country through persuasion of the banks that may bring positive impact on overall flow of remittances for the current fiscal.
"We have asked the bank to work for increasing inflow of remittances from the East Asian country," a BB senior official told the FE, adding that the management of the bank has been advised for taking steps to attract Malaysian investment in Bangladesh.
The ICB Islamic Bank, formerly Oriental Bank Limited, is being operated by Switzerland-based ICB Financial Group from Malaysia. The Group took over the management of the Oriental Bank Limited through purchasing over 50 per cent shears early this year.
The meeting also discussed a five-year business plan, submitted by the ICB Islamic Bank, aiming to make the bank a profitable financial institution in the stipulated time, they added.
During the meeting, the BB also instructed the management of the bank to increase its credit growth through disabusing fresh loans to the small and medium enterprises and other productive sectors.
"We've advised the bank to come forward with more lending plans in association with other banks and financial institutions to minimise the credit risks," the BB official added.
The Bangladesh Bank (BB) has asked the ICB Islamic Bank Limited to intensify drive to recover non-performing loans, particularly from its top 20 defaulters.
The instruction came at a review meeting with management of the bank at the central bank Thursday with BB Deputy Governor Murshid Kuli Khan in the chair.
The bank has also been asked to take initiative to increase the flow of inward remittances from Malaysia using banking channel, officials said.
Meanwhile, the central bank took a move to boost the inflow of remittances from the East Asian country through persuasion of the banks that may bring positive impact on overall flow of remittances for the current fiscal.
"We have asked the bank to work for increasing inflow of remittances from the East Asian country," a BB senior official told the FE, adding that the management of the bank has been advised for taking steps to attract Malaysian investment in Bangladesh.
The ICB Islamic Bank, formerly Oriental Bank Limited, is being operated by Switzerland-based ICB Financial Group from Malaysia. The Group took over the management of the Oriental Bank Limited through purchasing over 50 per cent shears early this year.
The meeting also discussed a five-year business plan, submitted by the ICB Islamic Bank, aiming to make the bank a profitable financial institution in the stipulated time, they added.
During the meeting, the BB also instructed the management of the bank to increase its credit growth through disabusing fresh loans to the small and medium enterprises and other productive sectors.
"We've advised the bank to come forward with more lending plans in association with other banks and financial institutions to minimise the credit risks," the BB official added.