Finance Minister Shah AMS Kibria has warned the bankers of quick and drastic action for classified loans against trade financing, says UNB.
"Classified loan against trade financing is totally unacceptable to the government.” he said while inaugurating Rupali Bank Zonal Heads' conference in the city yesterday.
He said that a major portion of the classified loans was due to trade financing. "And the bankers are 90 per cent responsible for these unrealised trading loans."
Kibria said: "Foreign banks here are making huge profit through trade loans. Why shouldn't we?"
Chaired by Rupali Bank chairman Afzalur Rahman, the function was attended by Its board of directors and zonal
heads. Managing Director Mohammad Yeasin All gave the address of welcome.
The two-day conference is being held at Hotel Purbani with an aim to exhort the bank officials to achieve this year's profit target of Tk 60 crore.
The bank. 95.5 per cent state-owned while 4.5 per cent private, has been incurring loss since 1989 to 1999 — barring nominal profits In 1995, 1996 and 1997. It incurred a loss of Tk 29 crore in 1999.
Expressing his dissatisfaction over the bank's performance. the finance minister asked the bankers of Rupali Bank Ltd to put in extra efforts for making profit. "I don't want to hear about losses anymore.
Administering a note of warning against those involved in Hundi business, he said large
scale illegal transaction Is not Eossible without the help of ankers.
The government has already taken some measures to curb the business and more stringent measures would be taken soon, he said.
He suggested the bank to reduce classified loans and computerise its transactions to make it a profit-making organisation- He also suggested introducing incentives for the bankers on the basis of loan recovery performance.
' Despite the losses in previous years, we have set the target of profit for the bank as we had been able to identify its problems." said Managing Director Yeasin All.
He said the bank has cumulative outstanding loans of Tk 2.000 crore.