12 public-private banks in capital shortfall | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
May 30, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, MAY 30, 2025
12 public-private banks in capital shortfall

Banking

TBS Report
06 September, 2022, 11:55 pm
Last modified: 08 September, 2022, 09:07 am

Related News

  • Al-Arafah Islami Bank will not pay dividend for 2024
  • Stocks, dollar rally as Trump tariffs hit court hurdle
  • DSEX drops 62 points, extends losing streak to six days
  • Stocks fall for fourth straight session as DSEX sheds 82 points
  • Stocks plunge further amid political volatility  

12 public-private banks in capital shortfall

TBS Report
06 September, 2022, 11:55 pm
Last modified: 08 September, 2022, 09:07 am
12 public-private banks in capital shortfall

Twelve banks have fallen into capital shortfall at the end of June this year due to an increase in non-performing loans in the country's banking sector.

The shortfall of the banks – five state-owned, five private and two specialised – was around Tk30,000 crore in the June quarter, according to data from the Bangladesh Bank.

In the previous quarter, 10 banks - five state-owned, three private and two specialised – had a capital shortfall of about Tk27,000 crore.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

As per the international regulatory accord Basel III, banks have to set aside a portion of their capital, which is generally 10% of their total risk assets, for expected future losses. If a bank fails to maintain its capital, it is considered a capital shortfall.

As per rules, a portion of the money provided to the bank's entrepreneurs and profits is reserved as capital. A bank cannot pay dividends to its shareholders with deficit capital.

Those concerned said that the loans taken out through various irregularities, corruption and collusion cannot be recovered on time. As a result, most of these loans default after a certain period. Against this, banks have to keep a safety deposit or provision. Banks have to use their capital to meet their needs for additional money which leads to a crisis.

At the end of June, defaulted loans in the banking sector had increased to more than Tk1.25 lakh crore. In the three months through June, new defaulted loans increased by about Tk11,817 crore.

The non-performing loans have increased in terms of percentage also. The default loan rate was 8.53% in March, which increased to 8.96% in June.

At the end of June, nine banks – four state-owned and five private – failed to keep provisioning according to the loan standards. The provision shortfall of these banks stands at Tk18,932 crore.

Stocks / Top News

Capital shortfall / stocks

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Deep depression over Bay of Bengal on 29 May. Photo: ANI
    Heavy rain, tidal surges trigger flood warnings as deep depression crosses coast
  • Powerful tidal surges from the Meghna River flooded more than 100 villages in four coastal upazilas of Lakshmipur on 29 May 2025. Photo: TBS
    Meghna tidal surge floods over 100 villages as incessant daylong rain batters Lakshmipur
  • Attackers vandalise the windows of the residence of Jatiyo Party (JaPa) Chairman GM Quader and set fire to a motorcycle in Rangpur on 29 May 2025. Photo: TBS
    Jatiyo Party chief GM Quader's Rangpur house attacked; NCP, SAD activists blamed

MOST VIEWED

  • Dhaka areas at a gridlock on Wednesday, 28 May 2025. Photo: Syed Zakir Hossain/TBS
    BNP, Jamaat rallies: Traffic clogs Dhaka roads, including Motijheel, Paltan, Dainik Bangla intersection
  • IFIC Bank receives Tk6,000 cr in new deposits in six months
    IFIC Bank receives Tk6,000 cr in new deposits in six months
  • Mohammad Abdul Mannan, chairman FSIB Ltd. Sketch: TBS
    FSIB to bounce back soon
  • Abdul Awal Mintoo, chairman of National Bank Limited. Sketch: TBS
    'Regulatory support must for National Bank to restore depositors' confidence'
  • Md Nazrul Islam Swapan, chairman of EXIM Bank. Sketch: TBS
    Exim Bank restored depositors’ confidence, overcoming challenges
  • Mohammad Mamdudur Rashid, managing director and CEO, UCB. Sketch: TBS
    Customers’ trust and confidence fueling deposit growth at UCB

Related News

  • Al-Arafah Islami Bank will not pay dividend for 2024
  • Stocks, dollar rally as Trump tariffs hit court hurdle
  • DSEX drops 62 points, extends losing streak to six days
  • Stocks fall for fourth straight session as DSEX sheds 82 points
  • Stocks plunge further amid political volatility  

Features

For hundreds of small fishermen living near this delicate area, sustainable fishing is a necessity for their survival. Photo: Syed Zakir Hossain

World Ocean Day: Bangladesh’s ‘Silent Island’ provides a fisheries model for the future

7h | The Big Picture
The university will be OK. But will the US? Photo: Bloomberg

A weaker Harvard is a weaker America

7h | Panorama
The Botanical Garden is a refuge for plant species, both native and exotic. Photo: Mehedi Hasan/TBS

The hidden cost of 'development' in the Botanical Garden

7h | Panorama
Stillbirths in Bangladesh: A preventable public health emergency

Stillbirths in Bangladesh: A preventable public health emergency

7h | Panorama

More Videos from TBS

Record migrant deaths in 2024

Record migrant deaths in 2024

4h | Podcast
News of The Day, 29 MAY 2025

News of The Day, 29 MAY 2025

5h | TBS News of the day
Businesses set for relief as interim govt eyes major tax & fine cuts

Businesses set for relief as interim govt eyes major tax & fine cuts

8h | TBS Insight
Love is essential for human life

Love is essential for human life

8h | TBS Programs
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net