Janata Bank focuses on loan recovery, not lending
FE REPORT | Saturday, 1 June 2024
Some banks, including Janata, have lost their capability to disburse fresh loans as laid-out loans are not coming back to the lenders, according to Janata Bank chairman Prof Dr SM Mahfuzur Rahman.
Instead of disbursing any fresh loan, they would rather concentrate on recovering defaulted loans, said Dr Rahman.
"The amount of money being lent is not repaid on time, which is impairing Janata's ability to provide new loans," said Dr Rahman said while addressing an annual general meeting (AGM) at the head office on Friday.
In his address to the 17th AGM, Dr Rahman emphasised the need to create a cordial environment between financial institutions and businesses.
He also called for unceasing efforts to reduce the rate of defaulted loans and highlighted the importance of modern bankers receiving training to enhance their effectiveness.
The meeting was told that Janata Bank's total deposits rose by 8.75 per cent to Tk 1,103 billion last year.
Loans and advances also saw a rise of 15.47 per cent, reaching Tk 983 billion.
In 2023, the bank's operating profit stood at Tk 5.84 billion, with a net profit of Tk 550 million.
Had the financial value of services provided under the government's safety-net scheme, estimated at Tk 7.0 billion, been included, the operating profit would have been even higher, it was noted.
The meeting, chaired by Dr Rahman, also featured a discussion led by Janata Bank managing director and CEO Abdul Jabbar.
Mr Jabbar highlighted various successes achieved by the bank and reported that it collected Tk 2.25 billion from classified loans and Tk 780 million from foreclosed loans in 2023.
The bank's total assets amounted to Tk 1,387 billion, with advances-to-deposit ratio of 89.17 per cent.
Additionally, the number of loss-making branches was reduced to 28 from 33.
Mr Jabbar also announced the launch of e-Janata, a mobile app-based world-class smart banking service.
Through e-Janata, customers can withdraw money from any branch by scanning a QR code on an Android mobile device without needing a checkbook.
The app also allows users to send money to any bank branch, pay DPS or loan installment, and transfer money to bKash or any cash wallet.
Moreover, Janata deposited a total of Tk 14.37 billion in the government treasury for VAT and excise duty in 2023, up from Tk 11.80 billion in the previous year.
Janata Capital and Investment Ltd, a subsidiary of Janata Bank, achieved an operating profit of Tk 180 million. These accomplishments were attributed to the dedicated efforts of all bank employees.
Financial Institutions Division joint secretary Kamrul Haque Maruf, Janata Bank's directors Ajit Kumar Paul, KM Shamsul Alam, Md Abdul Majid, Rubina Amin, Meshkat Ahmed Chowdhury, Muhammed Asad Ullah and Badre Munir Firdaus, DMDs Md Golam Mortuza, Md Fayaz Alam and Md Nurul Islam Mozumder, CFO Md Nurul Alam and company secretary MHM Jahangir, among others, were present.