Classified loans rise further

The amount of classified loans in the country's banking system increased further in the second quarter (Q2) of 2014 primarily because of a surge in default credits handed out by the scam-hit BASIC Bank, officials said.
According to provisional figures, the volume of default loans increased 6.58 per cent to Tk 513.44 billion in the April-June period of 2014 from Tk 481.72 billion in the previous quarter of this calendar year.
During the second quarter, the share of non-performing loans (NPL) in the total outstanding loans of the banking system rose to 10.75 per cent from 10.45 per cent in the January-March period.
During the April-June period, the total amount of the dud loans with the four state-owned commercial banks (SoCBs) rose to Tk 197.19 billion from Tk 186.89 billion.
On the other hand, the total amount of classified loans with 39 private commercial banks (PCBs) amounted to Tk 191.50 billion in Q2 against Tk 185.29 billion in the Q1.
The classified loans of nine foreign commercial banks (FCBs) also rose to Tk 14.22 billion from Tk 12.27 billion.
The default loans with four development-finance institutions (DFIs) surged to Tk 110.51 billion in Q2 from Tk 97.27 billion in Q1.
Of them, the classified loan with the state-owned BASIC Bank jumped by nearly 80 per cent to Tk 45.90 billion in Q2 from Tk 25.57 billion in Q1.