The Parliamentary Standing Committee on Finance Ministry will suggest merger of two specialised banks for falling to provide Industrial credit.

The committee at a meeting yesterday observed that the two banks -- Bangladesh Shilpa Bank (BSB) and Bangladesh Shilpa Rin Sangstha (BSRS) -lacked funds for providing Industrial credit and were busy trying to realise its defaulted loans.

Th£ meeting observed that there was no justification in having two such large banks ' just to realise loans.' said a committee member.

Quoting committee member ANM Mustafa Kamal, one source the two banks were established to finance industrial sector but they are unable to do. being burdened with default loans.

These banks are trying to realise their advances. If they cannot be given fresh funds, they might be merged." the source quoted Mustafa Kamal as telling the meeting.

He also said that Committee Chairman Ali Ashraf appreciated the Idea and decided to recommend merger of the two banks.

Members of the committee were giving their views on the activities and financial positions of five specialised banks, detailed in a document.

The committee also decided to discuss overall activities of the central bank and review implementation of Its earlier decisions.

Finance Secretary Dr Akbar Ali Khan said he needed one month to prepare and submit a report in this regard.

The document on the five specialised banks said there is an overall shortfall of Tk 207.98 crore in provisioning against the loans and advances by the banks. Against Tk 6405.95 crore loans, there is provision of Tk 1655.85 crore while the requirement IsTk 1863.83 crore.

' Bangladesh Krishi Bank (BKB) has a shortfall of Tk 67.58 crore.

BSB has Tk 266.84 crore while Raj shahi Krishi Unayan Bank (RKUB) has an excess of Tk 124 crore. BSRS has an excess of Tk 1.13 crore and Bangladesh Small Industries and Commerce Ltd (BSIC) has an excess of Tk 1.16 crore, it mentioned.

Total deposit of the five banks stood at Tk 3988.14 crore on September 28 this year. BSB has a deposit ofTk 104.98 crore. BKB 2915.41 crore. RKUB 382.33 crore, BSRS 9.85 crore and BSIC hasTk 575.57 crore.

Advances of the five banks totalled Tk 10.148.83 crore on June 30 this year . BKB's advances stood at Tk 4740.81 crore and that of BSB Tk 2075.51 crore. RKUB Tk 1212.94 crore, BSRS 1741.76 crore and BSIC Tk 377.81 crore.

The five banks filed 12,742 cases with the Money Loan Court till September 30 this year for realising Tk 851.04 crore in classified amount. The number of cases were 10. 738 a year before, involving Tk 990.84 crore.

A total of 5415 cases were disposed of till September this year as against 3227 one year ago.