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Bangladesh has more non-performing loans (NPLs) compared to its neighbouring nations due to a lack of stricter laws, and firmer regulations are a must to reduce NPLs in this country, said Premier Bank Chairman HBM Iqbal.
Speaking at a press brief on the occasion of Premier Bank’s 23rd anniversary, held at a city hotel on Wednesday, Iqbal said, “No loan defaulter can escape the law in India, Pakistan or Sri Lanka. But the scenario is different in Bangladesh.
“I always point out that we must be stricter if we plan to reduce our NPLs. To stop bad loans and ensure recovery, the law should the amended and Implemented properly without any sort of interference.”
He continued, “The rate of NPLs in Premier Bank came down to 2.73 per cent at the end of 2021, which is much lower than the industry average. I however am worried about such loans.
“Bad debts are giving me heart problems. There is no worse business than banking. After taking charge of the bank, my blood pressure has increased. Now I have to take medications in the morning and afternoon. But our bank has the least amount of defaulted loans.”
In the press meet, Premier Bank highlighted its financial details from 2017 to 2021.
During those five years, the bank’s deposits rose by 91 per cent, loans increased by 82 per cent, earnings from imports and exports rose by 231 per cent and 133 per cent respectively, remittance income rose 173 per cent, and the default loan rate dropped from 4.69 per cent to 2.73 per cent.
At the event, Managing Director and CEO of the bank M Reazul Karim said, “Despite the on-going USD crisis, our bank has surplus USD, and we are helping other banks currently facing USD shortage by selling the greenback to them.
“During January-September of this year, the import growth of our bank was 18 per cent. On the other hand, export growth was 70 per cent and remittance growth was 53 per cent. As a result, we have a surplus amount of USD in our hands.”
Last year, Premier Bank disbursed 22.5 per cent dividend – 12.5 per cent cash and 10 per cent stock. The performance till the third quarter of this year has been better than the last year, and the bank will be able to pay a good dividend this year as well as the operating profit is good.
The bank made Tk 291 crore in profits during the January-September period of this year compared to Tk 232 crore posted in the same period last year. The profit in the third quarter (July-Sep) was Tk 114 crore, which was Tk 67 crore compared to the same period last year.
