BDBL to come under BB’s close monitoring

Bangladesh Development Bank Limited (BDBL) to come under close monitoring of the Bangladesh Bank as the lenders’ financial health is worsening day by day.

The board of directors of the specialised bank met with the central bank Governor Abdur Rouf Talukder on Sunday as part of the move.

A senior official of the central bank told The Business Post that the Bangladesh Bank decided to sign a MoU with the bank to improve its financial health.

At the end of September last, the defaulted loans of BDBL stood at Tk 847.31 crore, which was 40.72 per cent of the total disbursed loans, as per the central bank data.

The defaulted loans of the bank are high for several years.

The banking regulator found out 10 weak and scam-hit banks in August of last year and is signing memorandum of understanding (MoU) with those banks in phases.

Bangladesh Bank already signed MoU with the National Bank, Padma Bank, AB Bank, One Bank, Bangladesh Commerce Bank and BASIC Bank and appointed coordinators to find out the way of improvement.

The central bank fixed a deadline to improve the financial indicator and governance of those troubled banks.

On the other hand, the trouble-hit banks must submit their progress report to the BB from time to time, said a BB official.