Finance moves to fast-track disposal of state institutions’ top 100 loan default cases
Over Tk38,000 crore tied up in 100 stalled cases
Highlights
- Top 100 defaulted loan cases involve Tk38,363cr
- Among banks, Sonali tops the list with Tk5,676cr
- Agrani and Rupali banks among other hardest hit
- Mahin Enterprise tops list of defaulters with Tk1,251cr
- Home ministry's help sought in enforcing arrests, evictions
- Defaulters may be required to deposit money before filing writ petitions
The finance ministry has launched an initiative to expedite the settlement of the top 100 default loan cases in state-owned banks and financial institutions, with the total value involved in these cases amounting to Tk38,363 crore.
The key decision came during a meeting chaired by Nazma Mobarek, secretary of the Financial Institutions Division, held in the capital yesterday, multiple officials present at the meeting confirmed.
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The meeting decided that the finance ministry will send letters to the law and home ministries and the attorney general's office, seeking their cooperation in identifying the reasons why these cases remained stalled and will request their assistance in resolving the issues promptly.
According to a report prepared by the Financial Institutions Division, Sonali Bank has 10 cases with Tk5,676 crore in defaulted loans, while Agrani Bank has Tk3,980 crore across 10 cases. Other major sums include Tk3,719 crore for the Sadharan Bima Corporation, Tk3,748 crore for Rupali Bank, Tk2,400 crore for BASIC Bank, and Tk1,575 crore for the Bangladesh Krishi Bank.
Additionally, the Bangladesh Development Bank has 10 cases totalling Tk876 crore, while Investment Corporation of Bangladesh (ICB) has Tk860 crore, Rajshahi Krishi Unnayan Bank has Tk294 crore, and the Bangladesh Securities and Exchange Commission (BSEC) has Tk84 crore in defaulted loan cases.
Top defaulters and procedural issues
According to Financial Institutions Division officials, the top defaulter is Mahin Enterprise, with a staggering Tk1,251 crore in defaulted loans. Other major defaulters include FMC Dockyard Ltd (Tk1,175 crore), Galaxy Sweater & Yarn Dyeing Ltd (Tk1,146 crore), Rimex Footwear Ltd (Tk1,084 crore), Pacific Bangladesh Telecom Ltd (Tk1,071 crore), and Marine Vegetable Oil Ltd (Tk1,057 crore).
Financial Institutions Division Secretary Nazma Mobarek informed reporters that the ministry is trying to understand why the cases are not being settled. She suggested that if a provision were made for defaulters to deposit a specific amount of money before filing a writ, it would curb the tendency to file writs with the High Court and also help recover some of the money in advance.
She added that a review revealed that even when banks file cases against defaulters, they are often not listed for a hearing and remain pending for months. To accelerate the process, the government will act according to its legal authority as the plaintiff.
New initiatives
Multiple officials present at the meeting confirmed that four other decisions were made to ensure the swift settlement of the cases.
To expedite case settlements, four additional measures have been adopted.
To ensure the progress and reasons for delays in these cases are tracked, each bank will now assign a dedicated officer.
Furthermore, the managing directors of the lending institutions will hold monthly meetings to review the progress of the top loan default cases and report their findings to the Financial Institutions Division for necessary action.
The Financial Institutions Division will also seek cooperation from the home affairs ministry to address the issue of police failing to execute summons and arrest warrants against defaulters.
Additionally, the ministry will request assistance from the home affairs ministry for banks to evict influential occupants from mortgaged properties, as police support is often lacking even after a favourable court ruling.
Finally, the Financial Institutions Division will encourage district commissioners at their annual conference to take the initiative to expedite these top loan default cases in lower courts at the local level.
