The central bank governor, on Wednesday directed the boards of two more crisis-ridden commercial banks to improve their financial health through paying more focus on cash recovery to recoup their soaring non-performing loans (NPLs).
As part of Bangladesh Bank's (BB) moves to resuscitate the country's troubled banks, BB Governor Dr Ahsan H. Mansur gave the instructions at a meeting with the recently-reconstructed boards of Al-Arafah Islami Bank and United Commercial Bank (UCB) at the BB headquarters.
Amid cash-crunch over the mass scale of loan-related irregularities, the central bank dissolved the then boards of the Al Arafah Islami Bank and UCB on September 03 and August 27 respectively before the reconstruction.
During the meeting, the BB high-ups asked questions about the revival plans of the respective banks from the board members regarding deposit build-up, corporate governance and cash-recovery activities of the underperforming credits.
Seeking anonymity, a BB official who attended the meeting, told the FE that as part of the central bank's continuous efforts to revive the troubled banks, the governor held view-exchanging meetings with the new boards of the respective banks.
The central banker said the governor wanted to know about the current situations of the banks particularly their liquidity situations, deposit-collecting drives and cash recovery activities against their growing NPLs.
During the meetings, the board members of the two banks shared their plan of actions with the BB high-ups to make their turnaround from the persisting stress time, according to the BB official.
However, comments of the board members of the banks concerned were unavailable despite repeated efforts through mobile phones.
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