SoBs move to realise 1.0pc service charge from government

The country's state-owned banks (SoBs) have moved to realise 1.0 per cent charge against various services they provide to the government, officials said.
Since their establishment, the SoBs have been providing the services to the government free of charge. Now they argue that the service charge can be a good source of income for them, they added.
The services the SoBs provide include collecting various utility bills, hajj and zakat payments, selling and encashing various types of bonds, issuing and encashing foreign currencies, paying wages of teachers, and employees of city corporations, municipalities and union parishads, and receiving tax on behalf of city corporations and municipalities.
Sources said at least two banks including BASIC Bank recently sent separate letters to the finance ministry for taking necessary steps to give permission for realising the service charge.
The other SoBs will also send similar letters to the ministry shortly seeking permission to realise the charge.      
The managing director of a state-owned bank told the FE over phone Thursday that the SoBs have been providing services to the government free of charge for long.
But a large number of employees and establishments need to be deployed to provide the services for which the banks get nothing, he said. "Why should we provide the services free of charge?"
Referring to statistics, bankers said if the banks charge at least 1.0 per cent charge against the services provided to the government, the amount will be a big one which could be added to their incomes.
He said Sonali Bank can earn around Tk 3.0 billion, Janata Bank Tk 2.0 billion, and BASIC Bank Tk 500 million if 1.0 per cent charge is realised against the services provided to the government.
"The earnings also can help us mitigate capital shortfall," the banker said.
He said, "We have raised the issue with the finance ministry at a recent meeting. And, we are united to get our demand accepted."
Most of the SoBs are facing acute capital shortfall and waiting for government allocations to meet the needs.
The government is set to disburse from the budgetary allocation to BASIC Bank Tk 10 billion, Sonali Bank Tk 3.0 billion, Rupali Bank Tk 2.0 billion, Bangladesh Krishi Bank Tk 1.49 billion, Rajshahi Krishi Unnayan Bank (RAKUB) Tk 1.0 billion, and Grameen Bank Tk 2.2 million to meet capital shortfall.
Secretary to the Bank and Financial Institutions Division Eunusur Rahman told the FE Thursday over phone that the issue is being discussed at various levels as it is justified that the SoBs need to charge to some extent against the services they provide.
"We have forwarded the issue to the finance division for consideration," he said.
Mr Rahman said a budgetary allocation is needed to provide the money to the banks from the public coffer.
He, however, said the amount the SoBs can charge is yet to be decided.
"We will take a decision in this regard after getting opinion from the finance division," Mr Rahman said.
     syful-islam@outlook.com