Senior Reporter
Banks in Bangladesh are failing to comply with regulatory guidelines in distributing funds under their Corporate Social Responsibility (CSR) programs, with the majority of spending diverted to unspecified sectors, a recent Bangladesh Bank report reveals.
Four state-owned banks in the country are struggling under the overwhelming pressure of non-performing loans (NPLs). In just six months, the classified loans of these banks have surged to nearly Tk 1.5 lakh crore. The latest figures from Bangladesh Bank show that by the end of June this year, the amount of non-performing loans stood at Tk 1,46,362 crore. More than 90% of these have already been identified as 'bad' or 'loss' loans—where the possibility of recovery is almost zero.
Bangladesh has already held several meetings over the release of the fourth and fifth installments of the International Monetary Fund (IMF) loan. But uncertainty looms over the release of the fourth tranches as Bangladesh could not fulfil the prior conditions, and there has been disagreement between the government and the IMF over the issues. Even if Bangladesh exits this loan programme, there are concerns about getting the $3 billion in the loan pipeline from international lending organizations.
In the December quarter of 2024, the number of millionaire depositors in the country's banking sector increased. At the same time, deposits in No-Frills Accounts (NFA) also saw a rise. According to the latest report from Bangladesh Bank, by the end of December, deposits in these accounts stood at 4,685 crore BDT, up from 4,465 crore BDT in the same period of 2023. This marks an increase of 220 crore BDT or 4.69% over the year.
Tea vendor Abdul Halim resides in Dhaka’s Jatrabari area, running a small shop where he serves tea throughout the day. His profession brings him in contact with people from various backgrounds, engaging in discussions that range from law and order to criticisms of Chief Advisor Dr. Muhammad Yunus. However, in recent days, one topic has dominated all discussions—the emergence of a new political party led by students.
As of December 2024, the total deposits of school students in banks stood at 2,071 crore BDT. In November, the amount was 2,041 crore BDT, indicating an increase of 30 crore BDT within a month. This information comes from the latest report on school banking published by the Bangladesh Bank.