AKM Zamir Uddin

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The energy ministry has asked Bangladesh Petroleum Corporation (BPC) and Petrobangla not to deposit their funds with weak financial institutions in the hope of getting higher returns in the form of interest.

“Institutions with good CAMELS ratings will have to be selected to deposit fund as per instruction given by the finance division,” according to a letter sent by the ministry to the two state-owned organisations.

“Capital of BPC and Petrobangla will be at risk, if fund is deposited with the financially weak banks and NBFIs,” the letter said.

The CAMELS rating is an internationally recognised rating system that indicates the actual financial health of banks and non-banking financial institutions (NBFIs).

The energy ministry has given the instruction at a time when a good number of NBFIs have failed to repay depositors’ money despite the maturity of funds.

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