“No more rise in NPL from today: Bangladesh Bank and Finance Div directed to work on it jointly”
Monirul Alam of DOT
Committing zero rise in Non-Performing Loans (NPL) in banks, newly appointed Finance Minister AHM Mustafa Kamal on Thursday said that directives has been given to Bangladesh Bank (BB) and Financial Institution Division to work jointly to reduce default loans and finding prudent investment for real businesses for employment creation and increasing production output.
Mustafa Kamal was speaking with reporters after a brief meeting with leaders of Bangladesh Association of Banks (BAB), a platform of owners of local banks, at the Minister’s office at Planning Ministry in the city’s Agargaon area.
“I told them to ensure no more increase in NPL, not even a single taka. And, I told them that I don’t know how they would do it but I want it happens from today. They have agreed,” Mustafa Kamal told reporters on Thursday.
The Finance Minister said he told the BAB delegation that they are owners of bank and they must find ways to stop further increase in default loans as this is their business.
The finance minister said each of the banks will prepare comprehensive report with separate statement on default loans, principal amount and interests and assessment on recovery prospects and send those to the ministry.
The finance minister said 11/12 percent NPL is still manageable.
“I am not worried of the current state of NPL. But it should not be grown anymore. Because, shrinking in NPL would ultimately result in interest rate reduction. It means businesses get more money for investment in trade, commerce and industrial set up.”
The finance minister said more money to businesses means more employment and production output, which would help the country to move forward in achieving the development goals.
The finance minister said that business personalities are influential quarter of the country as they control 82 percent of the economy.
“So, they must be provided with all facilities including credit facility. It is also important that they shouldn’t turn a defaulter,” the finance minister added.
Led by BAB chairman Nazrul Islam Mazumder, the delegation met Finance Minister was included of IFIC bank’s chair Salman F. Rahman and Premier Bank chairman HBM Iqbal, among others.