BB for 'analogous hearing' to settle classified loan cases
Shakhawat Hossain | Sunday, 3 August 2008
The central bank has recommended the law ministry to arrange 'analogous hearing' of classified loan cases involving Tk 110.52 billion of the state-owned commercial banks, official sources said Saturday.
The suggestion was made Thursday last as per decision taken at a meeting between the Bangladesh Bank (BB) and the state-owned commercial banks (SCB) for the speedy disposal of several thousands of such cases, filed by creditors.
"The cases on classified loans should be dealt with under the analogous hearing," said the BB letter sent to the law ministry.
Under the process, the SCBs will select identical cases and will settle those through the analogous hearing. The new process will ensure speedy disposal of the cases, said the letter.
Besides, the central bank suggested establishment of a separate bench in the High Court to get rid of classified loans cases, which is a concern for the SCBs.
The central bank wants appointment of more judges to fill the vacant posts of the money loan court to expedite the disposal process.
Currently, 23,341 cases are awaiting disposal by the court.
The speedy disposal of the classified loan cases through special arrangement has become necessary to carry out the memorandum of understandings (MoUs), said a central bank official.
Four SCBs -- Sonali Bank Ltd, Janata Bank Ltd, Agrani Bank Ltd and Rupali Bank Ltd -- signed the MoUs with the central bank March last to implement a four-year plan to improve their performance.
The performance of SCBs has been declining over years mainly because of intervention by the successive political governments in decision making process.
The SCBs' current market share has fallen by a half to 30 per cent since early 2000s.
Staggering classified loans is one of the main reasons for slump in SCBs performance, said the central bank official.
Early this year, the NCBs were turned into SCBs.
According to the BB statistics prepared March last, Sonali Bank has classified loan worth Tk 71.52 billion or 36.09 per cent of the bank's total loan.
Janata, Agrani and Rupali banks have Tk 19.30 or 16.48 per cent, Tk 32.87 or 29.17 per cent and Tk 18.41 billion or 40.25 per cent classified loans respectively.
The suggestion was made Thursday last as per decision taken at a meeting between the Bangladesh Bank (BB) and the state-owned commercial banks (SCB) for the speedy disposal of several thousands of such cases, filed by creditors.
"The cases on classified loans should be dealt with under the analogous hearing," said the BB letter sent to the law ministry.
Under the process, the SCBs will select identical cases and will settle those through the analogous hearing. The new process will ensure speedy disposal of the cases, said the letter.
Besides, the central bank suggested establishment of a separate bench in the High Court to get rid of classified loans cases, which is a concern for the SCBs.
The central bank wants appointment of more judges to fill the vacant posts of the money loan court to expedite the disposal process.
Currently, 23,341 cases are awaiting disposal by the court.
The speedy disposal of the classified loan cases through special arrangement has become necessary to carry out the memorandum of understandings (MoUs), said a central bank official.
Four SCBs -- Sonali Bank Ltd, Janata Bank Ltd, Agrani Bank Ltd and Rupali Bank Ltd -- signed the MoUs with the central bank March last to implement a four-year plan to improve their performance.
The performance of SCBs has been declining over years mainly because of intervention by the successive political governments in decision making process.
The SCBs' current market share has fallen by a half to 30 per cent since early 2000s.
Staggering classified loans is one of the main reasons for slump in SCBs performance, said the central bank official.
Early this year, the NCBs were turned into SCBs.
According to the BB statistics prepared March last, Sonali Bank has classified loan worth Tk 71.52 billion or 36.09 per cent of the bank's total loan.
Janata, Agrani and Rupali banks have Tk 19.30 or 16.48 per cent, Tk 32.87 or 29.17 per cent and Tk 18.41 billion or 40.25 per cent classified loans respectively.