& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

Loans to sister concerns of defaulting cos

Bankers oppose amendment to Bank Company Act

By Inam Ahmed
Top bankers of all the private and nationalised commercial banks yesterday unanimously observed that any amendment to the Bank Company Act regarding loan facilities to subsidiary enterprises of loan defaulting companies would jeopardise the financial posiUon or the banks.
This view was expressed in a meeting of chief executives of banks with the Governor of the Bangladesh Bank (BB) yesterday at the BB conference room.
Earlier, the Governor had sought opinions of the bankers about a proposed amendment to
the law that bars credits to subsidiary enterprises of loan defaulting companies, according to bankers present in the meeting.
The bankers, in response said any relaxation of the law will jeopardise the current loan recovery drive of the banks which the banks will not be able to sustain.
However, after hearing the bankers' views, the Governor, Lutfar Rahman Sarkar, asked them to take a lenient view towards the companies which are not wilful defaulters and have good projects needing finance.
He also requested them to reschedule defaulted loans of a subsidiary company if a group' wants loan against a good project.
The bankers also said that it was not the duty of the commercial banks to provide industrial loans and added that during the Pakistan period and even in the 70s. commercial banks were not involved in term-lending.
They were of the view that it would be risky for banks to provide term-loans from depositors' money. They said, experience of the past, especially of 1995 influx of term-lending is not good and the commercial banks also lack capability to weigh the risk of project financing.
The Governor, after hearing the arguments of the bankers, said BB would not put pressure on the commercial banks to provide long term industrial loans.
The bankers said, almost 100 per cent loans provided with 20 per cent equity during the 80s and 90s had 'gone baa which proves that loans with 20 per cent equity are basically political loans' which should be stopped to maintain the health of the banking sector.
After thorough discussion on the issue, the bankers decided that they would give priority to loan proposals with 50 per cent equity, and after meet-Jng their need, lower equity projects could be considered.
The bankers also discussed the government's initiative to float industrial bonds and felt that these bonds should be long term in nature with low Interest rate to make those 'responsive'.
About Jute financing, the private bankers said they would not give any loans to the Jute sector. Representatives of only Uttara Bank and Pubali Bank said they will continue ftinding their existing clients. Bankers from NCBs said they also will not finance the loss-making Jute units. However, they said they will continue financing Jute shippers and traders.
The Governor had sought the bankers' opinion about utilising some foreign private funds which could be availed on hard terms in project financing. But bankers responded in the negative and said this may pose a danger' for the banks who may fail to repay the money. In such a case, the country will loss foreign currency like what happened In Pakistan recently, they observed.
The bankers also expressed their concern about views expressed by some industrialists who castigated the governments current default loan recovery effort and said this is being done to destabilise the effort to bring discipline in the banking sector.